Friday, May 21, 2010

The Role of Mobile Phone in our Society with perspective on Indias Growth

Like other similar developing countries, India often considers mobile phones more as a precious resource to be shared by other family members and sometimes with friends, rather than treating it purely as a personal device.

One conspicuous difference between the mobile phone usage pattern in developed countries and India is reflected in the poor rural areas of India, where mobile phones are being bought by families and not by individuals. Most of these families do not have a landline, and the mobile phone in these poor rural families is a common resource for all the members of the family serving for emergency purposes.

Hence, the average size of a family can also be an important factor in the rate of the mobile phone usage in India. The average household in India which have a mobile phone averages over 5 persons, which is relatively higher than that of China, which averages over 3 persons.

The quick spread of mobile phones from an incredibly very low base provided a boost to communications, thereby largely increasing productivity. India as of today is identified as the quickest growing market segment for mobile phones, having an average growth rate factor of over 80% every year since 2000. India's technology spending is still low and there remains substantial scope for improvement.

If India's mobile phone segment is identified to grow further, it will only do so by targetting more small users. Hence, it is doubtful if high sales volumes and lower costs will put a strain on profits, thereby causing lower average revenue per user.

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