Indian SMBs spent $596 million on telecom
More than 20,500 medium businesses in India invested almost $596 million in
various kinds of telecommunication-related technologies during 2004, reveals
a study among 250 Indian SMBs. Local, long distance and cellular services that
comprise a mammoth 73 percent dominate the overall spending.
However, overall telecom expenditure is likely to drop marginally in 2005 due
to the falling tariffs of various fixed-line telecom services such as local
and long-distance telephony and cellular services. Overall spending on IP-based
technologies such as IP phones, IP PBX and IP Centrex is likely to rise in the
next few years.
Some factors driving telecom growth are the government's plans to privatise
International Long Distance telephony, legalise Internet telephony and increase
the proportion of foreign direct investment in this sector.
These are likely to result in increased telecom investments,
along with enhanced implementation of various communication-related technologies.
India MBs are also rapidly embracing high-speed Internet with the gradual decrease
in related access prices. Thus, increasing broadband usage is expected to be
another important factor enhancing the use of IP-based technologies such as
IP PBX, IP Centrex, VoIP and even Internet access through handhelds.