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Mobile Phone Revolution in Rural India
Pankhuri Bajaj, Oct 13, 2008 1435 hrs ISTWitnesses a phenomenal growth
Everyone has a mobile phone, at least in the cities, nowadays. Gone are the days when spotting a rickshaw-wallah chatting away on his mobile phone surprised us.
TRAI's (Telecom Regulatory Authority of India) latest report shows that rural India is soon catching up on this "mobile connectivity for all" phenomenon and have figures to prove this. According to TRAI, "Of the 25 million customers added in the April-June quarter, 8 million are from rural areas." In fact, rural India now accounts for as much as 30-percent of new mobile phone users in India.
With over 70-percent of the Indian population living in the hinterlands, it is not only the state-owned telecom operator BSNL reaching out to them; but private operators are now very much involved in this untapped lucrative sector. Slack in the growth rate in the metros has instigated private players to dig this goldmine.
Some facts:
- 70 million mobile users in villages (out of a total 300 million) compared with 40 million in September 2007 (out of 209 million)
- Nearly 75 per cent of mobile users in villages are now owned by private operators
- Mobile handsets costing less than $50 account for 62 per cent of all imported units (according to Yankee group)
However, with this surge, there has been a decline in the average revenue per user (ARPU). GSM operators ARPU per month has declined 9.3 per cent from Rs. 264 in March 2008 to Rs. 239 in June. For the CDMA segment, ARPU was at Rs. 139 in June compared to Rs. 159 in March.
Source: The Hindu Business Line
TRAI's (Telecom Regulatory Authority of India) latest report shows that rural India is soon catching up on this "mobile connectivity for all" phenomenon and have figures to prove this. According to TRAI, "Of the 25 million customers added in the April-June quarter, 8 million are from rural areas." In fact, rural India now accounts for as much as 30-percent of new mobile phone users in India.
With over 70-percent of the Indian population living in the hinterlands, it is not only the state-owned telecom operator BSNL reaching out to them; but private operators are now very much involved in this untapped lucrative sector. Slack in the growth rate in the metros has instigated private players to dig this goldmine.
Some facts:
- 70 million mobile users in villages (out of a total 300 million) compared with 40 million in September 2007 (out of 209 million)
- Nearly 75 per cent of mobile users in villages are now owned by private operators
- Mobile handsets costing less than $50 account for 62 per cent of all imported units (according to Yankee group)
However, with this surge, there has been a decline in the average revenue per user (ARPU). GSM operators ARPU per month has declined 9.3 per cent from Rs. 264 in March 2008 to Rs. 239 in June. For the CDMA segment, ARPU was at Rs. 139 in June compared to Rs. 159 in March.
Source: The Hindu Business Line
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