Are Indian telcos ready for digital boom?

According to a survey done by Google and AT Kearney, the internet or data usage can unlock Rs 20,000 crore of operating earnings for telecom companies in the next 3 years.

Digital technology is poised to be the next big growth driver for the telecom industry with a potential to add Rs 60,000 crore in just three years. A survey by Google and AT Kearney reveals that opportunities in digital technologies will boost not only revenues but profitability as well.

Do you pay your bills or book your movie tickets from your phone? If yes, then you are amongst growing class of m commerce consumers. According to a survey done by Google and AT Kearney, the internet or data usage can unlock Rs 20,000 crore of operating earnings for telecom companies in the next 3 years.

Nikolai Dobberstein, Partner, AT Kearney believes in the next 2 years, internet users will move from 200 million to nearly 500 million. Smartphone users will increase to 400 million. He says, "We also see the willingness to do online transactions will increase and we have estimated 160 people that are willing to do online transactions. So, it's a massive opportunity. What we do in the report is try to put a value to it."

The number say it all but its not just revenue and EBIDTA potential. Telcos could also benefit from significant cost savings. Google and AT Kearney have identified four areas of opportunity.

E-store and e-care, i.e. online recharges for mobile phones. This could save of almost one billion dollars; media and content services can add USD 6billion in additional data and content

Mobile business apps for SMEs can capture USD 1 billion in revenues and M payment which is paid app and content transactions.

Neeraj Gupta, Industry Director - Tech and Telecom, Google India says, "There is enough evidence to show that telcos can go down that journey. We have seen that from operators large & small. The bigger challenge is not the technology it is the change management. It is about changing the distribution structure & consolidating that."

While markets like Japan and Korea have taken up to 10 years to move from data to digital, the study finds that India is poised to leapfrog as the country has already embraced the internet, as seen by the recent e-commerce boom. All eyes now on how telcos embrace that opportunity.