Increase in telecom spend by Indian SMBs

BANGALORE, INDIA: In the race to stay ahead with technology, Indian small and medium businesses (SMBs), are going a step further by adopting newer technologies. SMBs, especially the mid-sized companies, are increasing their spend on telecommunication products and services to stay connected with their team members and also to enable smooth functioning of their business.

Indian SMBs are on the growth path, from being a small business to mid-sized, to a large enterprise. They are spreading their wings globally too. This being the case, they are looking at mobility to boost productivity and competitiveness. The are increasing their spend on telecom services and equipment to have in place a robust connectivity infrastructure.

A recent study by New York-based research firm AMI Partners Inc., has revealed that Indian SMBs are set to spend US$ 6.4 billion on telecom equipment and services this year, which is about 7 percent more than they did last year.

The study states that spending on telecom services such as cellular services, and local and long-distance telephony accounted for more than 90 percent of total telecom spending by SMBs last year.

Mobility players and telcos, who were hitherto targeting large enterprises with sophisticated gadgets and high-end communication products, have recognized that SMBs now have the same needs as their larger counterparts, and mobility solutions are on top of their minds.

Despite private players like Bharti Telecom, Tata and Reliance wooing the customers with attractive value-added services and competitive tariffs and battling for market share, Indian telecom majors such as BSNL and MTNL continue to be the market leaders in terms of national (NLD) and international long-distance (ILD) services. However, the overall market leader for telephone equipment is Beetel; it enjoys a healthy penetration, being used by 40 percent of SMBs, as per the AMI report.

You will be surprised to know that the Bangalore Telecom District (BTD), BSNL, has the unique distinction of registering an actual increase in landline connections in addition to an increasing demand for BSNL's broadband connectivity. BTD has a total of 9 lakh landline subscribers, including 1 lakh from the suburban areas and 2.1 lakh of broadband users.

BSNL principal general manager, BTD, Shubhendu Ghosh says: "The increase in landline usage is due to the increasing demand for broadband connections. Of the 2.1 lakh broadband users, 25,000 are enterprise customers, while the remaining are home and SOHO users. Year-on-year, we are seeing an increase in demand for our services."

In this special on "Increasing Telecom Spend by Indian SMBs," CIOL brings the views and understanding of the telecom needs of Indian SMBs from major service providers and vendors.

Read on…

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