Rural India rules in Mobile penetration

Posted on the December 5th, 2008 under General by CellBharatTeam

Mahatma foresaw and propagated that the development and growth of the rural sector is the real growth of a country. This is becoming true of the mobile penetration into the rural areas. The setback of Indian economy has not made any deeper impact on the rural segment and this can be affirmed from the report that the rural India is overtaking the metro and urban market with respect to the mobile usage. The TRAI disclosed the details of subscription in the four metros put together and the rural areas. While the metros could accumulate 10.3 million subscribers upto September 2008, the rural subscription is 11.3 million. As the fashion for usage of landlines becoming less, especially in rural segment, a study report from Confederation of Indian Industries (CII) and Ernst & Young Study, displayed the projection that in the coming years, among the 250 million wireless users, 40% (100 million) users will be from the rural sector, and before 2012, this will further increase to 60% of the net telecom subscriber rate. By the end of June 2008, the mobile phone subscription in rural India, which the report brands as circle B and circle C,reached a tremendous figure of 70.83 million which is nearly

13.72% and the present increase rate will go up to 2012. The next three years will be a booming phase for the mobile industry in the Indian rural sector, says Ernst and Young Study. The report further says, without any exaggeration, that by 2012, over 120 million new subscribers will form the major chunk, to supercede the metro subscription rate.

India has the potential  of 300 million mobile subscribers, which is second to China; this will be more than double, 650 million, by 2012, says the report. The entire telecom subscription in India, both landline and wireless included, is expected to be about 700 million.