Phone companies hoping to boost profits by seeking growth in China’s market for mobile data and other services take note: The world’s largest telecom market may be growing quickly, but India is a better bet.

As the market for voice calls matures, telecom operators from around the world, from Vodafone to Telefonica, are offering more lucrative services that let users download songs and TV programmes, for example.

These value-added services have taken off in Japan and South Korea, and the mobile phone operators and companies that provide the songs, ringtones and television are looking to muscle in on China and India, the world’s biggest and fastest-growing markets.

But, although both countries present obstacles to foreign investment, India is the faster growing market with an easier business climate for telecom companies. “For telecom operators, you should go to India because it is the fastest growing market,” said Liu Bin, an analyst for BDA.

India’s vibrant Bollywood film scene and demand for music is a big plus in its favour. “It is really a media-friendly market and so is the consumer,” said Neeraj Roy, chief executive officer of Hungama Mobile. “Music is the major driver and it is principally driven by Bollywood.”

The Indian market is also crowded with more carriers and content providers, offering greater tie-up opportunities. China’s estimated $10-billion mobile content market - controlled by state duopoly China Mobile Ltd and China Unicom Ltd - is 10 times the size of India’s and increasing by around a third each year.

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