'Cellular service revenue to grow at 18 pc'

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Mumbai, Jul 2: Research firm Gartner on Wednesday, July 2 projected a compounded annual growth rate (CAGR) of 18 per cent for total cellular services revenue in India between year 2008 and 2012, with revenue figures exceeding USD 37 billion.

The India mobile subscriber base is set to exceed 737 million connections by year 2012, growing at a CAGR of 21 percent, in the same period. This growth is poised to continue through the forecast period, and India is expected to remain the world's second largest wireless market after China in terms of mobile connections.''The growth in the mobile subscriber base is on the back of a rapidly proliferating rural market, lower handset costs, and low tariff rates in the Indian market,'' Madhusudan Gupta, senior research analyst at Gartner, said. ''Rural telephony will continue to trigger growth and is expected to grow fourfold during the forecast period.

Call rates have further dropped to about 1.5 cents per minute, narrowing the gap with fixed-line rates. These factors along with an increasing competitive landscape will fuel market growth and encourage the adoption of wireless services in the rural and semi urban provinces of India'' he added Cellular market penetration is projected to increase from 19.8 percent in 2007 to 60.7 percent in 2012. Gartner analysts said this growth could be primarily attributed to the increasing focus on the rural market, local consumer durable and electronic companies entering the domestic mobile handset segment, and lower handset prices. Vendors will continue to focus on sub-25 dollar handsets to capture market share.


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