India to zoom past 500 million subscribers by 2010, says PwC report

At a compounded annual growth rate (CAGR) of 28 percent, India is all set to achieve 539 million mobile subscribers by 2010 says a new report from ASSOCHAM and Price Water House Coopers. The report further estimates that while the rest of Asia will growth a CAGR of 22 percent, China and Africa will grow at a rate of around 14 percent during the period.

The PwC report also highlights that revenues from mobile services will increase to $35 billion by 2010, when compared to $22 billion in FY07.

According to PwC report, innovation in pricing of services and handsets were the two main factors contributing to the growth of mobile services in the country.

At the same time the report cautions operators to keep a check on the dwindling ARPU.
The report also points out operators need to devise a relevant package in offerings for the rural subscribers. The data usage in such segments is unlikely to achieve high uptake due to lack of local content on offering, says the report.

The report also mentions that the telecom manufacturing sector in the country is still lacking. It says manufacturers from Far East, particularly from China are dominating the market currently.

“Such companies are already in the third phase of their business evolution and can take advantage of not just low cost production capacities, but also a high degree of technological innovation and their own intellectual property,” says the report.