India’s mobile tele-density to reach 100% by March 2013

India’s wireless telecom market growth momentum is expected to continue… 
  • Wireless telecom market in India is experiencing the phase of high growth for past few years. Overall mobile subscribers in India have increased from 165.11 million in March 2007 to 771.18 million January 2011. As a result, mobile tele-density jumped from 14.61% to 64.74%.
  • The second largest mobile telecommunication services market in the world behind China, Indian wireless telecom sector is benefiting from lowest call rates, large market base due to bigger population, considerably sizable untapped market and robust economic growth of the country.
  • Moreover, presence of most of the large international telecom players in the market results in rapid technological adoption, better service standards, innovative product offerings and competitive pricing.  
Launch of 3G services, rising penetration levels in rural market fuels growth… 
  • Year 2010 marked introduction of high-speed 3G services in India. Most of leading telecom providers are aggressively reaching prospective customers with these new service offerings. Moreover, continuous launches of smart phones coupled with decline in prices of 3G enabled handsets could help 3G services to grow at higher rates in coming years.
  • For initial period at least, 3G services could have restricted market in Metros and category “A” circles.
  • Till now, it was urban areas which were driving the growth for mobile services market in India. However, driven by rising income levels of rural consumer, increase in wireless telecom services reach in these rural areas and affordability of mobile services would result in strong growth of rural wireless telecom market in coming years.
India’s mobile tele-density to reach 100% by 2013...

  • Combined effect of all the above factors would result in healthy growth of India’s mobile subscriber base in medium term. It is expected that total number of mobile subscribers in India would increase from 165 million in March 2007 to 1,239 million by March 2013 growing at a CAGR of 40%.
  • This would translate into mobile tele-density of 101% estimating India’s total population at 1,226 million by March 2013.
  • Interestingly, urban tele-density would be crossing 200% to reach approximately 760 million while rural mobile subscriber base is expected to cross about 500 million with 60% wireless tele-density.
  • Even, the share of rural mobile subscriber base of total market expected to increase from 34% in January 2011 to 40% in March 2013 indicating rising importance of rural market. 
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