Mobile games, Apps market to touch Rs 2,700 crore by 2016 - The New Indian Express

Mobile games, Apps market to touch Rs 2,700 crore by 2016

Published: 30th September 2013 10:34 AM

Last Updated: 30th September 2013 10:35 AM

The potential market for paid mobile apps will be nearly Rs 2,000 crore by 2016, according to a report by global  advisory firm Avendus Capital. According to estimates of an additional `700-850 crore in revenue for ad-supported mobile games and utility apps, the number is likely to increase to an estimated Rs 2700 crore by 2016, the report said.

“Airtel and Idea reported per MB realisation rates of .32 paise for September 2012 which is less than a fifth of the global average. Airtel’s realisation dropped further to .25 paise per MB by September 2013, indicating the impact of price reduction,” the report, titled ‘India’s Mobile Internet’, states. However, India still lags behind on the quality of 3G coverage that the mobile service operators provide.

According to estimates, only around 96,000 of the total of 7,36,000 telecom towers in the country are 3G enabled.

Major cities in the country have around 1,50,000 towers between themselves and the figures show that even urban areas do not have complete access to the 3G spectrum.

Indian 3G penetration is 10 years behind that of the mobile voice adoption rates. The analysts estimate a total of 266 million 3G subscriptions by 2016. The current active mobile internet subscriber base in India including 2.5G and 3G adds up to 85.6 million. Smartphone users are expected to grow to 67 million this year and 382 million by 2016.

The average revenue per user for paid apps will come down to around Rs 78 in 2016, the report estimates. The market for paid apps was around Rs 300 crore in 2012 and the market is dominated by content based on cricket, music, news, video and games. The report states that over 90% of India’s top 100 apps belong to the global list of top 1000 apps. This shows that global content is working better for the Indian mobile audience than it did for the Indian PC audience.

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