Indian SMBs spent over $5 bln on telecom in 2006

Small and medium businesses in India spent over $5 billion on telecom equipment and services in 2006, 5% over 2005. Spending on telecom services such as Cellular services, IP Centrex services, local and long distance telephony accounted for more than 90% of total telecom spending, according to AMI Partners. Cellular spending – which currently comprises 18% of overall telecom services expenditure in India – is set to account for a larger share of the spending pie over the next five years. The main drivers that propel SMBs to adopt cellular services are their need for mobility, 24/7 connectivity, and accessibility to business partners. More than 20% of SMB revenues are generated from interstate as well as international customers thus increasing the need for better communication and CRM.