Indian mobile (wireless telecom) subscriber base to cross 1 billion by March 2012

  • Indian wireless telecom market is witnessing unprecedented growth mainly driven by cheaper call rates, availability of low cost afforable mobile handsets and increasing purchasing power of Indian consumer led by robust economic growth.
  • Since, December 2009, India’s mobile market is adding on an average 19 million new customers every month. The trend is likely to continue in coming years as well mainly due to expansion of mobile telephony in rural market and rising trend of having more than one mobile connection among urban subscribers. 
  • Moreover, presence of 14 players in highly competitive telecom market is fueling volume growth as each player is desperately trying to expand its market presence in order to achieve sustainable scale.
  • Expansion of recently launched 3G services would also help the market to grow. However, majority of 3G additions are expected to come as upgrade of 2G connection with concentration in urban areas.
  • Continuing recent trend, rural markets would continue to outperform urban areas in coming years. Under penetration of rural markets, improving quality of life in rural areas and rising awareness of rural customer coupled with initiatives from the Indian government to increase penetration of communication services in rural areas are key drivers for the market.
  • As a result, India’s wireless subscriber base would cross 1 billion by March 2012 from 771 million in January 2011. This would translate into 83% of overall wireless tele-density.
  • Out of 1 billion mobile subscribers, urban market would constitute approximately 630 million customers with 175% wireless tele-density while rural market would expand to about 370 million subscribers with 45% wireless tele-density. 

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