The mobile phone demand in India is predicted to continue its growth in 2009 on the back of the launch of new mobile technologies and mobile number portability.
Although the world is facing financial turmoil, research firm iSuppli expects the demand for mobile phones in India to remain strong in 2009, as reported by PCWorld.
The mobile phone demand in India is anticipated to go up to 136 Million Units in 2009, recording a growth of 24% over 2008 when the growth was recorded at 17% (reaching 110 Million Units). Additionally, it is expected that by 2012, the mobile handset market will grow at a CAGR of 20% to 237 Million Units.
The mobile penetration rate in India currently stands at over 27%, which is significantly lower than countries such as Korea and Japan. According to a research report, “Emerging Rural Mobile Market in India”, from RNCOS, the total number of subscribers are expected to grow at a CAGR of 29% between 2007 and 2010, exceeding half a billion by the end of 2010. Moreover, much of this growth will be witnessed in the rural parts of India as handset sales in rural region are anticipated to cross 90 Million Units by 2010.
Reducing call rates, availability of affordable handsets, extending coverage area and increase in the operators’ portfolio of Value-Added Services (VAS) are some of the key factors responsible for sustainable growth in the Indian mobile handset market. These factors are positively impacting the mobile handset market, with the flurry of low cost handsets featuring color screen and camera phones being sold for as low as Rs 1,000.
The other reason for rising demand of mobile phones in India is the introduction of new technologies. For instance, the proposed rollout of 3G services in 2009 will phenomenally boost the mobile phones demand in the country. Moreover, the demand is expected to see robust growth in 2009 with the introduction of MNP (Mobile Number Portability) that will enable users to switch over to another operator without changing their mobile number.
According to a Research Analyst at RNCOS, “The high growth expectations in the sales of mobile handsets have brought a sigh of relief for market players who are experiencing the impact of global recession. This will also draw several big multinational companies to the Indian market to churn out profits.”
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