The share of rural subscribers in the Indian mobile market has considerably increased, attracting mobile service providers with hefty resources to tap the promising market.
More and more people in the rural India are extensively using mobile. Data released in Q4 2009 by TRAI (Telecom Regulatory Authority of India) indicated a speedy rise in the number of rural subscribers, as per the news published by
Business Standard.
In Q3 2009, the contribution made by urban areas had stood at 65% of net telephone additions; in Q4 2009, the contribution dropped to 57%. The rise in rural subscription was mainly registered in the wireless segment. At present, the proportion of rural subscribers stands at 31%.
The urban mobile market is almost saturated; as a result, mobile companies are receiving new customers from the rural India. Another reason for growth in the rural mobile market is the reach of technology in far-flung areas.
Considering the rising number of rural mobile subscribers, it seems that mobile service providers have recognized the potential of rural market. They are turning their resources to exploit opportunities in this vast segment. In order to expand the network to small villages far off, companies are coming forth with build-out plans worth millions and billions of dollars.
The initiatives of industry players along with various other factors (such as new product development, customization of products, infrastructure building) will further stimulate the rural mobile market. According to a market research report “
Emerging Rural Mobile Market in India” by
RNCOS, the rural mobile subscriber base is expected to touch nearly 320 Million by 2012 end.
According to a Research Analyst at
RNCOS, “The Indian rural mobile market is very well identified by both the handset vendors and mobile services. It is anticipated that other segments of the mobile industry will also prove to be highly beneficial for the mobile operators to gain from mobile. Because of significant growth in the Indian rural mobile market, there is a huge market for Mobile VAS (Value Added Services). In fact, a few service providers have already gone ahead for rural VAS. Such a move will further speed up growth in the Indian mobile industry.”
Related Market Research Reports:
3G Market Forecast to 2013
Indian 3G Mobile Forecast to 2012
Global Mobile TV Forecast to 2013 
