We all know India is growing like crazy. As a matter of fact it is the single fastest growing mobile phone market. According to Gartner, with a compound annual growth rate (CAGR) of 18%, the country’s cellular services market is projected to surpass $37 billion by 2012, while exceeding 737 million connections at the same time.
Cellular market penetration is projected to increase from 19.8% in 2007 to 60.7% in 2012, due to the increasing focus on the rural market, but also thanks to such factors as local consumer durable and electronic companies entering the domestic mobile handset segment, and lower handset prices. Vendors will continue to focus on sub-25$ handsets to capture market share.
The Indian mobile market continues to be dominated by prepaid subscribers, which accounted for more than 89% of all mobile connections in 2007 and are expected to grow to more than 92% of the connection base by 2012.
The total services revenue for prepaid connections is expected to grow at 18.9% CAGR for the period 2008-2012 and the total services revenue for postpaid connections is expected to grow at 15% CAGR during the same forecast period. By 2012, the prepaid subscriber base will cross 683 million and postpaid subscriber base will exceed 53 million subscribers.
[Via: India Times]