Sunday, July 6, 2008

India Mobile Market to Exceed $37 Billion by 2012

A report just released by Gartner, Inc. spells out how fast the rate of penetration is expanding throughout India. According to the report, cellular services is projected to surpass $37 billion as early as 2012. This makes India's market the fastest growing in the world.

The market is also predicted to exceed 737 million mobile connections or subscriptions. This will be achieved if the country continues to grow at its current compound growth rate of 18%.

In 2007 the cellular market penetration was 19.8%; by 2012, expect that number to balloon up to 60.7%.

A large factor in the success of this market is the increasing focus on rural areas, lower handset prices and prepaid services. Most vendors focus on handsets that cost less than $25, and prepaid subscribers account for 89% of the market. This number will increase to 92% by 2012.

The final numbers crunched by Gartner, Inc. shows that churn rates of the market will also increase from 41 to 49 per cent, despite a more mature market.

via India Times via IntoMobile

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