Saturday, April 25, 2009

India: growth of mobile customer base is in rural areas and amongst the poor

[The Hindu] When most sectors are bearing the brunt of global economic slowdown, India's telecom industry is continuing with its high growth saga, thanks to the expanding subscriber base in the rural areas.

India last month saw the highest number of subscriber addition, around 16 million, about three times the population of countries like Finland, Denmark and Singapore.

A majority of the numbers were from the rural market with the urban market becoming more or less saturated. The mobile handset replacement market and the switch from landline telephony to mobile telecom have also been the driving force for such robust growth.

"The overwhelming number of connections that are added every month is due to the reach of the network to those sections of society it had never touched before," T.V. Ramachandran, director general of GSM operators' lobby Cellular Operators Association of India (COAI), told IANS.

Rural India fuels telecom growth

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