Indian Mobile Market is expected to be worth $37 billion by 2012 (India)India is the country where all major internaitonal players like Virgin, Etisalat are now trying to merge/acquire/invest for high ROI’s. It is the single growing mobile phone market in the world, According to Wireless Federation, with a compound annual growth rate (CAGR) of 18.2%, the country’s cellular services market is projected to surpass $37 billion by 2012, while exceeding 740 million connections at the same time.
If we see the market penetration, An increase of nearly 40% is expected by 2012. This figure was <21 % in August 2007. Operators are now focussing on Bottom of the pyramid which is the rural market. Mobile Vendors like Nokia, HTC, Samsung are focussing on low cost handsets to meet this demand and this position will not change unitl the rural market is captured.
The Indian mobile market continues to be dominated by prepaid segment which includes the Youth, Low ARPU customers, which accounted for more than 90% of all mobile connections in 2007 and are expected to grow to more than 92.4% of subscriber base by 2012.
The total services revenue for prepaid connections is expected to grow at 19% 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. Due to high competiton involvement in the country, Operators will now have to survive with Strategies that look to increase ARPU from the low value segment apart from VAS initiatives. An example has been set by the market leader - Airtel, who has been actively trying to promote VAS like Mobile Banking, Ad-Funded CRBT, Low Cost Roaming services. 2008-09 is the year when India expects a lot of CHURN.
For queries related to “Increase ARPU and Reduce CHURN” Strategies contact info@WirelessFederation.com
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