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Uptake of 3G Services in India
Subscribers Base Breakup (Forecast)
0200400600800100012002008 2009 2010 2011 2012 2013
I n m i l l i o n s
2G Subscribers 3G Subscribers
Share of Customer Segments in 3G in 2013(Forecast)
80%20%0%0%Urban – Above Poverty LineRural – Above Poverty LineUrban – Below Poverty LineRural – Below Poverty Line
3G Subscriber Base
Evalueserve believes that the number of 3G subscribers in India will grow at arapid pace during 2010–2013. This growth will be fuelled primarily by a decline inthe price of 3G services, resulting from fierce competition among private players.The launch of 3G services in India will improve consumers’ experience byproviding high-speed Internet access and better quality of voice and data services.The services will be available in both urban and rural areas, with initial focus onurban customers. The following are some of the major factors that are likely todrive the adoption of 3G services in India:
about 54 percent of the total Indian populationis aged below 24 years
, 3G service operators will mainly target this segment.
Increasing purchasing power of the average telecom servicesconsumer will promote the adoption of 3G technology-based innovativeservices.
Evalueserve anticipates a price war among the private operators togain market share in the initial stage. Lower price and higher disposableincome of customers will result in increasing adoption of 3G services.
3Gservices such as videotelephony, bankingservices, mobile-learning and mobile-governance provideconvenience andmobility. Easy access tobanking services isexpected to attracturban consumers, while mobile governance will be more popular among ruralconsumers
The growth in the 3Gsubscriber base will bedriven primarily by theadoption of the service bythe Urban (Above PovertyLine) customer segment.This segment is expected tobe the fastest adopter ofthis new technology. Theurban (above poverty line)segment is expected toaccount for about 80 percent of the total 3G consumer base by 2013. The BelowPoverty Line segment is expected to remain dormant over four to five yearsfollowing the launch of 3G. The Rural (APL) segment will witness growth only after2011 with the basic 3G service portfolio coming of age and the proliferation ofcustomised services focused on the rural markets.
Poverty ratio for urban and rural regions have been computed using the consumption data for 30-day recall period
India a Potential for 3G Market – A Feasibility Study, IIT Kharagpur