Indian Wireless Market to Triple by 2011, Says iSuppli

Press Release - April 23, 2007

Research firm, iSuppli Corp., expects the Indian cell phone market to triple over the next three years, as mobile handsets become increasingly accessible in rural areas of the south Asian country.

The number of Indian wireless subscribers nearly doubled last year alone, reaching 149.5 million by the end of December, and with 5.5 million new customers signing up every month, subscriber numbers are expected to reach 484 million in 2011.

“A rise in per-capita income, the arrival of less-expensive phones, declines in tariffs, pro-industry and pro-consumer regulations enacted by the government and a host of other factors have been instrumental in driving this growth,” explained iSuppli director and principal analyst, Dr. Jagdish Rebello.

The Average Revenue Per User (APRU) of Indian carriers averaged out to around $7/month in 2006, but is expected to drop below $5 by 2010, as penetration increases in poor rural areas. Mobile data services like GPRS and EDGE will see a gradual increase in popularity, but are not expected to have much impact on APRU in the short term.