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India to surpass US in mobile business

TimePublished on Wed, May 10, 2006 at 13:47, Updated on Wed, May 10, 2006 at 14:43 in Business section


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New Delhi: The pace of India's mobile phone market growth is accelerating and the country is on track to surpass Russia and the US in total subscribers, a report from Datacomm Research said.

The report, according to Chetan Sharma, consultant and report author, indicates that "the number of mobile phone subscribers added each month in India has more than tripled over the past year."

"India passed Japan in total subscribers last month. Within the next few weeks, India will break through the 100 million subscriber barrier," Telecom Asia Daily quoted him saying.

The report also said India's wireless boom is largely the result of government decisions favoring competition. Both developing and developed countries can learn from India's regulatory, network infrastructure, handset, and value-added service innovations.

The report added that the country is also poised to spend several billions of dollars on wireless infrastructure to accommodate subscriber growth, improve rural coverage, and add advanced services.

India's consumers require low-cost phones and handsets are now available for as little as $40.

However, many Indian consumers will spend a little more for enhancements such as the ability to download and play music and games, it said.

The GSM mobile subscriber base crossed the 70 million mark in April with an addition of 2.93 million with top mobile firm Bharti Airtel capturing 28.7 per cent market share with 20.68 million subscribers as demand increases in world's fastest growing cellular market.

The subscriber base grew from 69.2 million as on March to 72.12 million as on April - recording an addition of 2.93 million during the month, latest figures released by cellular association COAI said.

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