Telecom industry outlook 2014: Netxcell

HYDERABAD, INDIA: Here is an outlook for the telecom industry in 2014 by Netxcell.

Overview of 2013

2013 was not so great due to several micro and macro-economic issues facing the country. Hyderabad has seen some turmoil due to Telangana issue. Telecom is going through a rough patch. The industry's revenue model has not been in a great state as the price points have decreased and margins have been lower, which is not good for the industry.

There have been various other issues on VAS restrictions with TRAI introducing third-party consent gateway, etc., which have further impacted revenues. Moreover, rising inflation and high investment costs have added to the woes of the industry.

2014 for telecom industry

Telecom industry has great hopes on 2014 that a stable government will take a relook at the National Telecom policy post the elections. Maybe after 2014 general elections, some telecom policy decision will evolve. And the market will be stabilized. However, we are optimistic about 2014.

There is a trend to enhance the basic telephony rate and that will add to profitability. There will be investment to enhance the infrastructure. The industry is awaiting a firm decision regarding the telecom policy. We expect increase in pricing for telecom offerings in the coming year. Some kind of market consolidation is also likely to take place.

Overall, in my opinion, 2014 will be a much better year. A steady government with good policy decisions will bring in a tremendous change for the industry. Inspite of turmoil, the industry is currently growing at 14 percent rate, which will increase once there is clarity on the regulations front.

Telecom trends in 2014

4G is set to revolutionize the Indian telecom scenario. The inclusion of fiber optic connectivity will tremendously increase the reach and bandwidth. 3G will also gain substantial momentum while 2G will continue to be the most preferred. The quality of services is set to improve with companies taking a step forward to invest in infrastructure.

Cloud will be a game-changer for telecom as well, with more and more companies looking forward to saving costs, cloud deployments will be a preferred mode to acquire cost advantage. Analytics and data will drive the industry forward in the coming year. In my opinion, telecom in India will witness major changes in the coming years.

The author is the CEO, Netxcell Ltd, Hyderabad, India.