Mobile app Industry to emerge undisputed winner in data price wars
India has surpassed the rest of the globe when it comes to mobile data usage with a single average user consuming more than 100 GB of mobile data per month as per Mukesh Ambani, the chairman of Reliance Industries, the parent company of Jio.
Interestingly the announcement came after a mere six months of the launch of Jio services which offered unlimited 4G data and voice calls across the country, reflecting the hunger for mobile data in the country.
The launch of the free services also compelled the incumbent telecom operators to follow suit to retain their users. With the data wars taking place in full swing in the Indian telecom industry, the mobile application industry is poised to register a growth of an unimaginable magnitude in the coming times.
What's interesting to note is that the usage of mobile applications in India soared 43 percent Y-o-Y in 2016 even when the mobile data charges stood as high as Rs 250 for 1GB which justifies my usage of ''unimaginable magnitude'' term.
The price wars along with a cut throat competition to offer the most consistent high speed wireless network among telcos also seems to resolve the chicken and egg situation in the mobile networks and application ecosystem, with the data network now taking the growth lead and paving the way for mobile application industry to reciprocate.
India witnessed a download of six billion applications in 2016 almost twice the number of 3.5 billion in the year 2015. And the year 2017 is expected to witness at least a twofold Y-o-Y growth, thanks to the unlimited 4G data services coupled with a flood of smartphones offering premium features at an affordable price tag.
And while the affordable unlimited data packs have served as a much needed shot in the arm for the mobile application industry, formulation of policies by the government which further catalyse this growth mobile application development market is sure to take things to a whole new level.
The endorsement of digital payment for daily transactions by the government is one such step in the right direction which has not only helped in getting rid of tax evasion, but has also ushered in a new era in the M-payment space.
All said and done these are the most exciting times for mobile application ecosystem in India with just about everything right for the industry to flourish. With an inkling that the current data price wars will get intense in the not so distant future, I am positive for a triple digit growth of the industry in the coming five years, creating significant employment opportunities for the young professionals of the country.
— by Satya Satapathy, Managing Director, Creation Infoways
