Indian telecommunications industry is a King Kong when it comes to statistics. I don’t really need to speak in numbers to tell you how big it is and at what phenomenal pace it is continuously growing. Just for the record, there are a little over 628 million telephone subscribers in the country (including landline and mobile phones) as of March 2010. It’s the second largest telecom network in the world and second largest with respect to wireless connections. We’re even set to take on China by outnumbering them in in terms of telecom subscribers by 2019.
Let’s talk about mobile phone users in the country. From being a luxury segment once mobile phones have come of age. Now carrying a mobile phone is essential no matter how much you make at the office. It’s a necessity. There are about a little over 584 mobile phone users in India. It is hard to predict clearly how much of them are smartphone users from these. I’m guessing that category of users is up on the rise.
It’s not hard to think about the reasons for the growth of smartphone users in the country. To begin with the basic cost of a smartphone handset had come down drastically. With BlackBerry bringing down prices for it’s entry level smartphones there’s not much left for other smartphone manufacturers to think upon. Today you can buy a decent entry-level smartphone in India for about Rs. 9000-14000 ($190-$300). With a decent smartphone I really mean a decent one. Second smartphone plans are more affordable. Basically you’re subscribing to the usual tariff plans mobile phone operators provide but if you’re subscribing for smartphone specific services such as E-Mail/Data plans for BlackBerry etc. then you’re paying a little over your current tariff plan. So the cost of ownership is pretty much on the green side.
Talk about buying a smartphone in India and the market is flooded with smartphones. There was a time when smartphones were so exclusive only a few manufacturers were selling them in the market and they cost a bomb. Now things have changed drastically. From Blackberry to HTC the market is open. The competition is consumer friendly and we’re headed to big times with new smartphones being launched almost every quarter. Even cheaper Chinese handsets are available in the market (with IMEI numbers now). Handset manufacturers like Micromax, Karbonn etc. are also selling their range of mobile phones are ultra cheap prices. I’m not sure if they’re rolling out smartphones as yet.
So with a mobile phone in almost every pocket of an Indian you see today the question now is, will smartphones replace a simple mobile phone handset in India? The number of smartphone users is of course on the rise but it might take a significant amount of time to lure users into making an investment into a smartphone. Imagine if the number of smartphone owners rises to a significant amount, I’m saying 50-60% of the total mobile phones sold, the possibilities for growth are endless.
For one the data usage will rise. Smartphones will increase Internet penetration which can provide a boost to an array of service providers. With 3G just around the corner this could mean video calling your doctor to show him your symptoms or your fruit selling making a video call to advertise how his oranges are fresh and pulpy. It certainly may sound like a wonderland for now but if the growth of mobile phone users in the country if anything to go by it’s not too far from reality.
A smartphone for a billion Indians? Indeed!
Statistics: Wikipedia
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Tags: 3g, blackberry, chinese phones, India, iphone, micromax, nexus one, population, smartphones, telecom