Rural India key growth driver of telecom industry

27 per cent of the total mobile owners at the poorest socio-economic group, were added last year, whereas the urban areas added only 19 per cent
Rural population is the key growth driver of India's telecom industry though affordability still remains a key issue, a study released here on Thursday said. According to the study by LIRNEasia, and information and communication technology policy organisation, 27 per cent of the total mobile owners at the bottom of the pyramid (BOP), or the poorest socio-economic group, were added last year, whereas the urban areas added only 19 per cent. "Just five years ago, the massive momentum developed by the Indian telecom industry did not include rural areas. But now, the picture is different," the study said. It added that phone ownership—both landline and mobile—at the BOP increased a whopping 131 per cent between 2006 and 2008, reports IANS."Affordability still remains a key issue for the people at the bottom of the pyramid to buy mobile phones," LIRNEasia Chairman and Chief Executive Rohan Samarajiva said. Mobile ownership is as high as 40 per cent at the BOP whereas the fixed phone ownership is eight per cent. The study said India has a large second hand mobile phone market. "Most of the rural customers on an average spend US $34.82 to buy a second hand phone and approximately US $48 for a new phone," Samarajiva said.However, a major chunk of the people still utilise only voice services and services like payment through mobile. Other value-added services are still at a negligible level, the study said.