Date: 03/04/2011

Mobile phone sales in rural India to grow at a CAGR of 19% from 2011-12 to 2013-14

According to RNCOS' research report "Booming Rural Mobile Market in India", rural India has emerged as the fastest growing segment in Mobile sector. As penetration in the urban regions has reached almost to the saturation level, mobile operators in the country are now vying rural India as their next area for growth in the near future. Further, it is expected that the subscribers' base in these region will grow at a CAGR of 35% during 2011-12 to 2013-14 on the back of key catalyst factors discussed in our report.

As per RNCOS analysis, the rural market is the best option for revenue generation for cellular operators and handset manufacturers as mobile phone penetration is very low in these areas. Cellular operators, who launched their services in B' and C' class cities have received tremendous increase in revenue.

RNCOS research highlights that the success mantra for rural mobile market in India lies upon the operators' service pricing models coupled with the availability of low-cost handsets that support affordable access for rural areas. It is forecasted that sales of mobile handsets in rural India will grow at a CAGR of around 19% from 2011-12 to 2013-14. Availability of efficient and low-cost battery handsets will drive the growth of future sales in this segment.

For more information visit www.rncos.com