As more and more regions coming under the ‘mobile umbrella’, rural parts of India are no different. The mobile penetration is increasing in this world’s fastest growing telecom market and the report “Emerging Rural Mobile Market in India” provides extensive research on the growing marketplace for mobile industry in rural India. It report provides detailed analysis on the rural India mobile industry, its current performance and the future prospects. The study looks at how new mobility could be used to bridge the growing economic and social divide between rural and urban areas. This report helps clients to have an insight into the mobile industry in rural India, giving its forecasted future size including subscribers’ growth, handset sales, market share, market penetration, opportunities, and roadblocks.

India's telecommunication sector is witnessing an explosive growth, as falling tariffs and rising incomes are bringing mobile phones within the reach of millions of new customers. Mobile industry players are eyeing rural India as their new area of opportunity. The companies are getting a boost with the fact that the mobile users are expected to cross 230 Million by 2007 end and 500 Million by 2010 with an addition of about 5 to 6 Million subscribers every month. Cellular service providers seem to be answering the call of the wild as they are entering the so far ignored rural market. Although a huge market in the urban segment remains tapped, most of the cellular operators have turned towards rural India to broaden their base and reach. So the real growth is expected from this geography in near future.

The low population density in rural areas has necessitated more towers of higher altitudes raising the costs further. Language is another problem and there are many dialects that had no alphabet in rural India. To meet these challenges, operators must come up with solutions like simplifying product access, offering customer centric solutions (like songs, music, hello tunes that are popular), and infrastructure sharing.

Key Findings

§ With saturation in the urban market, growth in Indian mobile market will be driven by an increased focus on the rural market, aggressive promotions, and handset bundle offers.
§ As of March 2007, mobile subscribers in rural India accounted just 20% of the Indian mobile subscriber base. However, it is forecasted to grow at a CAGR of more than 47% during 2007 to 2010.
§ In order to remain competitive, the mobile industry could see several mergers and acquisitions, roll out obligation and substantiate equity holding in more than one telecom company.
§ The major growth in mobile phone subscribers will be seen in C’ Circle and B’ Circle in short-term.
§ Enormous opportunities are emerging for the low cost handset manufacturers along with low tariffs, infrastructure development for mobile communication.
§ Rural India will account for around 35-38% of the total mobile handset sales by 2010.

Key Issues

§ What is the current scenario of the Indian mobile industry?
§ What is the need of mobile telephony services in India?
§ What is the market share of Urban/Rural mobile market in India?
§ Why is the rural mobile market gaining attention of telecom players?
§ What should be the players’ strategies to hit the rural mobile market?
§ How are infrastructure development/sharing emerging as a huge opportunity to tap rural market?
§ Which are the states/circle having greater potential of growth in rural India?
§ What are various opportunities emerging for the horizontal segment in the Indian mobile industry?
§ What will be the handset market size in rural India in future?
§ Who are the key players in Indian mobile industry (including both handset manufacturers and service providers)?

Research Methodology Used

Information Sources
Information has been sourced from various credible sources like books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.

Analysis Methods
The analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.

1. Analyst View

2. Mobile Industry in India - Current Scenario
2.1 By Subscribers
2.2 By Technology
2.3 By Service Providers
2.4 By Handset Manufacturers
2.5 By Growth Potential: Urban vs Rural

3. Rural India - Mobile Industry
3.1 Mobile Communication for Lifestyle Transformation
3.2 Factors Driving Rural Mobile Industry
3.3 Strategies for Rural Mobile Industry

4. Rural India - Magnetizing Mobile Industry
4.1 Untapped Rural Market
4.2 Mobile Infrastructure Development
4.3 Low Cost Handset Manufacturing
4.4 3G Infrastructure Development
4.5 Content & Application Development
4.6 Value-added Services
4.7 Network Equipments
4.7.1 Mobile Towers
4.8 Infrastructure Sharing
4.9 Internet Connectivity

5. Mobile Development Roadblocks
5.1 Infrastructural Constraints
5.2 Illiteracy
5.3 High Access Deficit Charges (ADC)
5.4 Distribution Channel

6. Rural India - Future Outlook of Mobile Industry
6.1 By Subscribers (2007-2010)
6.2 By Market Share - 2010
6.3 By Penetration - 2010
6.4 By Handset Sales - 2010
6.5 By Circle/State
6.5.1 Metros
6.5.2 Category A
6.5.3 Category B
6.5.4 Category C
6.5.5 Circle/State with Maximum Potential

7. Government Regulations

8. Company Analysis - Key Players
8.1 Mobile Handset Manufacturers
8.1.1 Nokia OYJ
8.1.2 LG Electronics
8.1.3 Sony Ericsson Mobile Communications
8.1.4 Motorola, Inc.
8.1.5 Samsung Electronics Co., Ltd.
8.1.6 Haier
8.1.7 Huawei
8.2 Mobile Service Providers
8.2.1 Bharti Airtel Ltd.
8.2.2 Bharat Sanchar Nigam Ltd.
8.2.3 Reliance Communications Ltd.
8.2.4 Hutchison Essar Ltd.
8.2.5 Tata Teleservices Ltd.
8.2.6 Idea Cellular Ltd.
8.2.7 Aircel Cellular Ltd.
8.2.8 Spice Communications Private Ltd.
8.2.9 MTNL
8.2.10 BPL Mobile Communications Ltd.
8.2.11 HFCL Infotel Ltd.
8.2.12 Shyam Telecom Ltd.

List of Figures:
Figure 2-1: India - Number of Mobile Subscribers (in Million), March 2002 to March 2007
Figure 2-2: India - Forecast for Number of Mobile Subscribers (in Million), 2007-2010
Figure 2-3: India - Number of GSM Subscribers (in Million), March 2006 & March 2007
Figure 2-4: India - Number of GSM Subscribers by Circle (in Million), March 2005 to March 2007
Figure 2-5: India - Number of CDMA Subscribers (in Million), March 2006 & March 2007
Figure 2-6: India - Market Share of GSM Service Providers (%), March 2006
Figure 2-7: India - Market Share of GSM Service Providers (%), March 2007
Figure 2-8: India - Market Share of CDMA Service Providers (%), March 2006
Figure 2-9: India - Market Share of CDMA Service Providers (%), March 2007
Figure 2-10: India - Growth of CDMA & GSM Mobile Segment (%), March 2006
Figure 2-11: India - Market Share of CDMA & GSM Mobile Segment (%), March 2006
Figure 2-12: India - Number of Urban & Rural Mobile Subscribers (in Million), March 2007
Figure 2-13: India - Share of Rural Mobile Subscribers by Service Provider (%), March 2007
Figure 2-14: India - Number of Rural Mobile Connections (in Million), 2007E & 2010E
Figure 2-15: India - Mobile Coverage in Villages (%), 2007E
Figure 2-16: India - ARPU of Mobile Service Providers (in US$), 2006 & 2011F
Figure 4-1: India - Forecast for Number of Mobile Towers (in ‘000), 2007 & 2010
Figure 4-2: India - Percentage of Shared Network Towers, April 2007
Figure 6-1: India - Forecast for Number of Rural Mobile Subscribers (in Million US$), 2007-2010
Figure 6-2: India - Forecast for Share of Urban & Rural Mobile Market (%), 2010
Figure 6-3: India - Forecast for Mobile Penetration (%), 2007 & 2010
Figure 6-4: India - Forecast for Rural Mobile Handset Sales (in Million Units), 2007 & 2010
Figure 6-5: India - Number of Cellular Subscribers in Metros (in Million), June 2006 & June 2007
Figure 6-6: Delhi - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-7: Delhi - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-8: Mumbai - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-9: Mumbai - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-10: Chennai - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-11: Chennai - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-12: Kolkata - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-13: Kolkata - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-14: India - Number of Cellular Subscribers in Category A’ Circle (in Million), June 2006 & June 2007
Figure 6-15: Maharashtra - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-16: Maharashtra - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-17: Gujarat - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-18: Gujarat - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-19: Andhra Pradesh - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-20: Andhra Pradesh - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-21: Karnataka - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-22: Karnataka - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-23: Tamil Nadu - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-24: Tamil Nadu - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-25: India - Number of Cellular Subscribers in Category B’ Circle (in Million), June 2006 & June 2007
Figure 6-26: Kerala - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-27: Kerala - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-28: Punjab - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-29: Punjab - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-30: Haryana - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-31: Haryana - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-32: Uttar Pradesh (West) - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-33: Uttar Pradesh (West) - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-34: Uttar Pradesh (East) - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-35: Uttar Pradesh (East) - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-36: Rajasthan - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-37: Rajasthan - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-38: Madhya Pradesh - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-39: Madhya Pradesh - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-40: West Bengal & Andaman Nicobar - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-41: West Bengal & Andaman Nicobar - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-42: India - Number of Cellular Subscribers in Category C’ Circle (in Million), June 2006 & June 2007
Figure 6-43: Himachal Pradesh - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-44: Himachal Pradesh - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-45: Bihar - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-46: Bihar - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-47: Orissa - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-48: Orissa - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-49: Assam - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-50: Assam - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-51: North East - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-52: North East - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-53: Jammu & Kashmir - Number of Cellular Subscribers (in Million), June 2006 & June 2007
Figure 6-54: Jammu & Kashmir - Number of Cellular Subscribers by Service Provider (in Million), June 2006 & June 2007
Figure 6-55: India - Growth of Cellular Subscribers by Circle (%), June 2007
Figure 6-56: India - Growth of Mobile Subscribers in Top 10 States/Cities (%), June 2007
Figure 8-1: India - Mobile Handset Manufacturers Revenue (in Crore INR), March 2006 & March 2007
Figure 8-2: Nokia - Mobile Handset Market Revenue (in Crore INR), March 2006 & March 2007
Figure 8-3: LG - Mobile Handset Market Revenue (in Crore INR), March 2006 & March 2007
Figure 8-4: Sony Ericsson - Mobile Handset Market Revenue (in Crore INR), March 2006 & March 2007
Figure 8-5: Motorola - Mobile Handset Market Revenue (in Crore INR), March 2006 & March 2007
Figure 8-6: Samsung - Mobile Handset Market Revenue (in Crore INR), March 2006 & March 2007
Figure 8-7: Haier - Mobile Handset Market Revenue (in Crore INR), March 2006 & March 2007
Figure 8-8: Huawei - Mobile Handset Market Revenue (in Crore INR), March 2006 & March 2007

List of Tables:
Table 2-1: India - GSM Handset Market Sales Scenario (2002-03 to 2005-06)
Table 2-2: India - Top CDMA Handset Manufacturers Revenue (in Crore INR), 2004-05 & 2005-06
Table 2-3: India - Distribution of Urban & Rural Households by Income Group (%)
Table 2-4: India - Rural Mobile Penetration of Top 15 States, June 2007
Table 6-1: India - Rural Thrust of Top Mobile Service Providers
Table 6-2: India - Infrastructure Sharing by Top Mobile Service Providers
Table 8-1: India - Mobile Handset Manufacturers Revenue (in Crore INR), 2005-06 & 2006-07
Table 8-2: Bharti Airtel Ltd. - Key Financials (in Billion INR), March 2006 & March 2007
Table 8-3: Bharat Sanchar Nigam Ltd. - Key Financials (in Crore INR), March 2004 to March 2006
Table 8-4: Reliance Communications Ltd. - Key Financials (in Crore INR), December 2005 & March 2007
Table 8-5: Hutchison Essar Ltd. - Key Financials (in Million HK$), 2004-2006
Table 8-6: Tata Teleservices Ltd. - Key Financials (in Crore INR), 2004-05 to 2006-07
Table 8-7: Idea Cellular Ltd. - Key Financials (in Crore INR), March 2006 & March 2007
Table 8-8: Spice Communications Private Ltd. - Key Financials (in Million INR), June 2004 to June 2006
Table 8-9: MTNL - Key Financials (in Million INR), March 2005 to March 2007
Table 8-10: HFCL Infotel Ltd. - Key Financials (in Crore INR), March 2005 & March 2006
Table 8-11: Shyam Telecom Ltd. - Key Financials (in Crore INR), March 2005 & March 2006+G3