Thursday, September 3, 2009

Some Current Issues of Indian Mobile Phone Sector

In number, India has the second largest mobile phones subscriber base in the world. It is only next to China and there is no surprise about for this matter considering the fact that India is the second most populous country after China. Not only that, China has better economic condition than India and that is why, there is hardly possibility that India will be able to catch up with China in terms of mobile phones subscriber number in short term. However, and I’m not concerned about the comparative figures of mobile phone subscribers in these two countries. Rather, in this entry, I would like you to talk about some current issues related to the mobile phones sector of India.

10 Million new users in December 2008

You may hear a lot about economic recession and economic slowdown these days but you should get amazed to know that Indian mobile phone companies could add 10 million subscribers in December, 2008. now, India has around 346.9 million mobile phone users. This is amazing figure that you can easily understand that there is still he was wrong for growth for months to come because of the fact that India has a population of over 1 billion people. There are lot of reasons for being optimistic about the fact that the country might experience similar growth in January, 2009.

What about the recession?

I don’t think that the mobile phones sector will remain free of the bad effects of ongoing global economic recession. Sony has already announced that 2009 will be a bad year for the company. LG does not have anything to celebrate either andofficials at Nokia are worried about the condition in this year too.

NTT DoCoMo in Indian Market Soon

Still, many people feel that India is a great place to be at this moment with investment. At least, NTT DoCoMo officials have this kind of feeling and they are going to finalize ‘a $2.7 billion investment in the mobile- phone business ofIndia’s Tata Group’ in the next two months.

Falling Oil Price and Inflation can be Positive

So, I am at two minds about the possible impact of global economic recession on my wife one sector of India. On the one hand, I feel that there is some reasons to be worried as economic growth worldwide and even in India will slow down significantly in 2009. All other hand, there is a lot of room for growth in this country in the mobile phone sector. At the door things can play a positive role. The rate of inflation has decreased much due to the light of millions of people in the country. Any decrease in inflation will assure the people and give some breathing space so that they can contemplate on expanding some more money for buying mobile phone connections and handsets. At the same time, there is another good news and the price of oil is now under $40.00. Indian economy suffered a lot from high oil price in the international market in the last three years.

Job loss in Export Sector

But then, there is something that can play a negative role. You know that information technology outsourcing has contributed immensely in the export revenue of India in the last one decade. However, this sector is suffering because many people are losing jobs from the fact that the DEA month for all its source in services in Europe and America is not growing that much. In fact, there is fear that almost 10 million people could lose jobs in the export sector in the next few months. Many young people enjoy and call center and get a good salary and spend the money on buying expensive mobile phone sets. This has become like a fashion for many young people in the country.

What about Connectivity to the Village People?

One area is neglected and that is rural area. More western companies are not still that keen to reach the people in the villages because The rural people are not well off and in fact, millions of people in Indian villages are still very poor. So, the mobile phone operators perhaps feel that revenue party user will not be high in the village areas and that is why they are not trying to expand aggressively their network in the villages. I feel that this is a long and strategy and They should take the village market more seriously.

Mobile Commerce still not Up to the Mark

Mobile phone commerce is an other area that is not growing well enough. Yes, some Indians can pay their bills and even transfer money through their mobile phones in its but still mobile commerce is Insignificant. But I believe that it has huge potential for the country but hardly any mobile operator is taking it seriously and exploring the options. More research should be done in this regard and if needed the mobile phone operators showed learn from the examples of western operators in America and Europe.

Mobile Phone: No Longer a Luxury Item

Only a decade ago, most people in India used to think that the mobile phone was a luxury item and it was like a status symbol. Fortunately, this matter has totally changed and now most people consider need to be a part of their daily life.

Internet Penetration through Mobile Phones

Indian decision makers are keen to increase the number of Internet users but so far has pledged to do so and this is not a good sign for a country that has one of the three largest economies in Asia. Mobile phone can be a very good medium in this regard and it can surely increase Internet penetration in the country in a very short time.

What is ahead in 2009?

If you have read the entry then you must notice that I have some reservations and optimism about Mobile Phone sector of India for the year 2009. What is your prediction?

(This entry was first published in January 2009. Because of a technical problem, the entry had to be deleted and I am reposting again now.)

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