India’s mobile services market is continuing its growth momentum. According to Gartner, it will increase by 8 percent to hit US$2.2b this year. Mobile connections will grow 11 percent to 770 million in 2013.

“The mobile market in India will continue to face challenges if average revenue per unit (ARPU) does not grow significantly,” said Shalini Verma, Principal Research Analyst at Gartner. “If the prevailing conditions do not change in the Indian telecom market, India will account for 12 percent worldwide mobile connections, but just 2 percent of worldwide mobile services revenue (in constant US$) in 2013.”

Indian telecom operators are faced with two major challenges – growing their profit margin in the face of intense competition and successfully competing with over the top service providers, such as Facebook and WhatsApp.