India’s Cellphone Market

Writes Business Week: “No longer are cell phones the exclusive privilege of India’s wealthiest. Today, taxi drivers, plumbers, and all manner of small tradesmen are buying phones. By 2006, India will have 44 million subscribers, predicts Gartner Group. That would make it the third-largest cellular market in Asia, after China and Japan. And with many industry experts expecting China’s market to hit saturation level, India is looking all the more attractive to the likes of Motorola, Nokia, and Ericsson , which can’t count on much excitement from sluggish markets in the West.”

The last sentence reiterates a point I am making in this week’s Tech Talks – that the next markets for technology are the emerging markets. In the developed markets of the West, much of tech has reached saturation, especially when it comes to attracting new consumers.

The BW article also has some interesting comparisons between the Indian and Chinese mobile telephony markets: “India has fewer than 8 million cellular subscribers, compared with China’s 190 million…Chinese carriers add 5 million subscribers monthly, compared with India’s 500,000. That means China continues to buy far more equipment: Its capital expenditures for cellular networks will be $14 billion this year, compared with just $1 billion for India, according to Pyramid Research.”

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Rajesh Jain

An Entrepreneur based in Mumbai, India.