Thursday, July 19, 2007

Indian mobile services to cross $25bn by 2011: Gartner

by Vipin Agnihotri

If the survey of global consultancy and research firm Gartner are to be believed, revenue of Indian cellular operators is all set to grow at a compound annual growth rate (CAGR) of 18.4 percent to reach $25.617 billion in 2011 from $8.95 billion in 2006. According to experts, India will continue to be the fastest growing country in Asia Pacific (APAC) region in terms of mobile telephony after China.

In my opinion, Indian rural market presents immense growth opportunities, as mobile penetration is just around two per cent there. Plenty of companies are planning to tap this market by coming up with the handsets that would cost below Rs 1,000.

It is worth mentioning in this regard that call rates have reduced tremendously to about 2.6 cents per minute. Though, this remains high when one compared it with fixed-line rates at 0.9 cents per minute. Survey of Gartner expects prices to dip in order to become more competitive in nature with fixed-line rates. By 2011, around 58 percent of the Indian rural population and 95 percent of the urban population will be covered with mobile connections.

Theoretically speaking, Indian domestic market is driven by pre-paid connections, which accounted for more than 84 percent in last year and is expected to grow to more than 93 percent of the connection base by 2011. It has come into the notice that pre-paid subscribers are expected to adopt data services quicker than the post-paid segment.

 

 

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