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Pricing Strategies- Mobile Phone Industry
By Parvez Rangwalla
Welingkar Institute of Management Development & Research, Bangalore.
1. History and growth of mobile phone industry in India 2. Current scenario of Mobile phone industry 3. Marketing strategies of Major players- Nokia and Samsung 4. Pricing Strategies in Mobile Phone Industry 5. Current trend in mobile industry 6. Future of mobile industry (RURAL) 7. References
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US based Motorola. However.1. Even as the government slashed the duties at the same time various mobile manufacturers reduced their rates to induce the customers to buy a phone from authorized phone shop. LG. HTC. after the number of proactive initiatives taken by regulator and licensor. The mobile services were commercially launched in India in August 1995. At this point the Korean brands namely Samsung and LG established themselves after they tied up with CDMA operator Reliance Infocomm. Apart from this there is also a competition from imported unbranded Chinese mobiles which are avaible with lot many features of a typically high end say Nokia mobile but. This opened up a mass market for mobile manufacturers in India. Haier are all competing for a place in the market. the monthly mobile subscriber additions increased to around 2 million per month in the year 2003-04 and 2004-05. Apple. In the initial days of mobile phone in India in mid 1990‟s the grey market accounted for 80 per cent of the mobile phone sales due to a huge price differential between the legally imported and the grey market phones. This was a breakthrough in India‟s mobile phone industry since. In the last few years there has been a huge exponential growth with addition of about 10 to 15 million subscribers per month to customer base. people were able to get mobile phones with Reliance connection only for a initial cost of about Rs. Huawei. the old order has changed today players like Samsung. History and growth of mobile phone industry in India: The real transformation came in the scenario of Indian telecom industry after announcement of National telecom policy in 1994.5 millions. at a substantially lesser price.1 million only and the total mobile subscribers base in December 2002 stood at 10. When mobile phones were introduced in India in the mid-90s. After the initial dominance of Nokia from 1990‟s till 2002. Motorola came up with their CDMA models and have been able to regain their market share. Today the grey market comprises very small share of market. Over the years.05 to 0. 3 . In the initial 5–6 years the average monthly subscribers additions were around 0. a change occurred in Indian market hen CDMA technology was launched in the year 2003. 500/-. Virgin. Sweden's Ericsson and Finland's Nokia dominated the handset market in India. Gradually all the major players like Nokia.
India‟s rural teledensity stands at about 12. The penetration of mobile phones stands at about 30%. still lot of potential is to be explored in the rural segment. The major reasons for this boom have been: 1. 4. 81% of mobile users are in urban area. It is forecasted that sales of mobile handsets in rural India will grow at CAGR of around 17% from 2009 to 2012 Above figures clearly indicate that although mobile phones might have made significant inroads into the urban market & urban market may start moving towards saturation but. 5. Current scenario of Mobile phone industry: Following are the highlights of mobile phone industry in India as on December. Market Share of different Manufacturers as on Dec-2009 is given below: As evident from above figures.6% India has about 517 million subscribers by December. Falling tariff rates of telecom service providers . 2009: 1. Nokia is a major player in the Indian mobile industry today. 4 . Fall in the prices of mobile handsets. Increase in the reach of service providers covering ever nook and corner of the country. 2. 2009. 2. 3. 2.In the last few years India has witnessed a revolution in mobile phone market with about 8 to 10 million subscribers being added to the customer base each month. 3.
6% 55. mobile phone is a device which is frequently replaced in few years time. We can see that mobile phones are avaible in various price bands from Rs. 2.vitalanalytics.in Users Likely to recommend 57.000/- 5 . the brand which provides maximum satisfaction to users will be able to maintain high loyalty and hence.Also to understand the satisfaction level which users of above brands express. The source of this data is website: www. we look at a consumer satisfaction survey. The results of above survey are important since.6% 41. The survey was done on Indian Urban mobile phone users with Sample size of N=5. A segregation of Indian market on the basis of price bands is shown below. maintain its market share. so.3% Model LG Motorola Nokia Samsung Sony-Ericsson The result shows Nokia users are the most satisfied with their product followed by Sony-Ericsson and LG.& less up to Rs.0% 68. the results of which are shown below.775. 50.7% 65.000/.
000/-) to middle price range (till Rs.to maximum Rs. 15.fonearena.900/-.9.900/-). 2.Source: http://www. Apple. Also. are able to target all the different segments of the market. Companies like HTC. Huawei etc fall in the same category. On the other hand there are players like Usha lexus whose product fall in the lower category with their products being avaible in price range of minimum of Rs. Vertu have products only for the high end market of Rs. 3. 6 .900/. Nokia.000/.and more. Sony Ericsson have mobile phones avaible in all different price range and hence. Players like Onida have mobiles in lower prices (Rs. LG. 4.com/mobile_phone_pricelist. 2. 1.html A close study of the product offered by various companies reveals following: 1. 5. Virgin mobile. Players like Motorola.
The company's Code Division Multiple Access (CDMA)5 facility is located in Mumbai and provides software and technical support to CDMA consumers in India and other Asia Pacific countries. the state capital of Tamil Nadu in southern India.” 7 . Nokia Corporation said. that its strategies . more importantly. But. announced that it was setting up a manufacturing facility for mobile devices in Chennai. Marketing Strategy: A holistic view (Nokia. Nokia . Nokia India. Nokia planned to invest US$ 100-150 million in the facility. was succeeded in administrating marketing strategies in India markets. Pekka Ala-Pietilä. a subsidiary of Finland-based Nokia. “Establishing a new factory in India is an important step in the continuous development of our global manufacturing network. requiring strong logistical support. Nokia's win is also an endorsement of the importance of the ubiquitous cell phone as a durable in today's world.including ones like developing a phone specifically for India . India met all these requirements. Nokia is mostly a cell phone company. In 2004.”4 India was ideal for Nokia's new production facility. The company has been carrying out sales & marketing. Nokia was the market leader in mobile communication devices in India. After all. where the production was expected to begin in the first half of 2006. Samsung): Nokia: Nokia. Nokia considers India to be one of its most important markets. This level of manufacturing involves a total of 8 billion components per annum.are respected. as a manufacture of mobile communication devices. President and Head of Customer & Market Operations. One. “This Finnish company's debut at the top of the heap says two things. Each mobile handset has more than 400 parts and the average production capacity of each manufacturing unit of Nokia is around 20 million units. Besides. unlike its competitors.Made in India – A detailed analysis In April 2005. and also enjoyed cheap manpower costs and proximity to the rapidly growing Asia Pacific markets. most of which offer a slew of durables. Nokia was chosen as „the most respected consumer durables company' by Businessworld6. The magazine wrote. customer care and research & development activities in the country. The reason is that Nokia delivers better products which cater to the needs and preferences of Indian consumers. Nokia's manufacturing facility needed to be located close to a major international airport or sea port for quick supply of components.3.
mobile phones and telecommunications networks. In India. In the 1990s. In the late 1970s. Nokia created the NMT mobile phone standard in 1981 and launched the first NMT phone. The company focused on two core businesses . When Nokia entered India. Nokia continued its leadership in GSM with a market share of 74% in March 2005. Another significant move of the company during this period was the divestment of its non-core operations like IT. Nokia was recognized as the „Brand of the Year by the Confederation of Indian Industry. Enamoured of Nokia's success in the Indian market. Siemens and Ericsson.. with the company selling 54 million phones during the period. consumer electronics became Nokia's major business. Nokia also had to face tough competition from other powerful global players like Motorola. Harvard University had invited Nokia India to talk on „How Nokia cracked open the Indian market?' About Nokia Nokia was founded in 1865 by Fredrik Idestam in Finland as a paper manufacturing company. The company was chosen for this award because of its high brand recall.. the company's sales reached 7. In 1920. Globally. Nokia also surpassed Samsung in color mobiles in the GSM segment.. Finnish Cable Works joined them. Between 1992 and 1996. Nokia entered the Indian market in 1994. Nokia provided GSM services to 90 operators across the world.a precursor for all Nokia's current GSM phones . The company delivered the first GSM network to Radkilinia. the company exited from the rubber and cable businesses as well..16 per minute and. All the three companies were merged in 1967 to form the Nokia Group. Mobira Cityman.was introduced.In 2005. in 1987.4 billion euros. at these high rates. well established distribution channels and being 'most preferred' by the consumers. consumers did not take to mobile phones. The first ever GSM call in India was made on a Nokia 2110 mobile phone on its own network in 1995. during the first quarter of 2005. usage charges were at Rs. Nokia 1011 . Sony. the telecom policies were not conducive to the growth of the mobile phone industry. Finnish Rubber Works became a part of the company. The tariffs levied on importing mobile phones were as high as 27%. Nokia started taking an active interest in the power and electronics businesses and by 1987. Nokia was quick to learn from its mistakes and adopted strategies to regain its lost market share. and later on in 1922. and in 1992. a Finnish company in 1991. India's apex industry association. recording a share of 55% in the same month 8 .
there was great scope for further expansion with reduction in the cost of ownership Samsung's Strategy to Gain Market Share in The Indian Mobile Phone Market The Samsung management has initiated a market-mapping exercise to get into our fold distributors who have relevant knowledge of the market. its mobile phones were priced between Rs. multimedia and mobile services for organizations. 28. the mobile phones industry in India will be driven by voice. with mobile subscription rising to 148. the cell phone has become the only basic telephone link of a household/enterprise in India.Nokia reorganized itself at the global level in 2004. and a comparatively lower priced model aimed at a bigger chunk of the market. The marketing division of the company concentrated on making distributors in small towns sell high-end products. by 2010. a multimedia division was formed. It was turning out to be more economical and efficient than fixed line telephones. the new distribution strategy would take its penetration level in the market from the current 55 percent to 85 percent by the end of the year. the process was streamlined and the results started to show. The company as of early 2008. rather than a landline phone. The teledensity in India was estimated to increase to 18. 1. it was taking initiatives to increase the number of retailers enrolled as Samsung Mobile Privilege Partners (SMPPs) from around 100 in 2007 to around 400 by the end of the year. At this point. The Future Prospects According to industry analysts. In many instances. Though. the distributors were skeptical to start with. The models that were launched included multimedia phones. On the retail front.77 million by that time. phones for corporate customers. but that the company would launch more expensive mobile phones in the future The company also announced its new positioning with the new pay-off line 'Next is 9 . Single and multi-brand retailers had shown an interest in becoming SMPP. by the end of 2004.000. credibility. the company launched five new mobile phone models and said that it would launch another 13 by the middle of the year. a good distribution network and will therefore contribute in strengthening Samsung's reach in the market. The division's Indian operations concentrated on promoting the concept of highend telephones in smaller towns while going in for higher volumes in larger cities. So.700 and Rs. In the same month.2% by March 2009.
Samsung Middle East and Africa region. playing in Chelsea Football Club. CEO. As part of this partnership. self-expression. 10 . with immense growth potential. as its 2008 Mobile Phone category brand ambassador. Hrithik Roshan endorsing Sony Ericsson.” Football sponsorship is one of the pillars of Samsung‟s sports marketing strategy. we are now thrilled to partner with Drogba as Samsung‟s brand ambassador. The company said that it had the necessary infrastructure to ramp up its production capacity at its manufacturing unit at Noida from the current 6 million units per annum. and will also make public appearances to promote Samsung‟s products and corporate activities. the fight for the mobile phone market had also become a four-way battle with other leading actors endorsing the rival brands Shah Rukh Khan endorsing Nokia. Announcing the major celebrity endorsement for the brand. discovery.With all these new initiatives. We are indeed very proud and privileged to have him as our brand ambassador. Abhishek Bachchan endorsing Motorola. and. HB Lee. “Extending our association with Chelsea FC. Samsung has signed up Didier Drogba. have made him a much loved and respected actor in India today.What?' and that it had roped in a leading actor of the Indian film industry Aamir Khan (Aamir) as its brand ambassador. "The Samsung brand stands for qualities of innovation. Samsung (South-West Asia). Drogba will appear in Samsung Mobile adverting campaigns for a period of one year. president and CEO. Samsung was confident of achieving its objective of cornering a 15 percent market share in the country. and excellence in performance. “Africa is a key market for Samsung Electronics. the mobile phone market in India would be 100 million units in 2008-09. Aamir would also feature in its new ads. said.” says Chi Won Suh. depending on the demand Recently to have an impact on international prospective mobile phone users. It is derived from the belief that sport especially football unites people of all ages. And these very same qualities are epitomized by Aamir Khan." With Aamir's endorsement of Samsung. change. and we are confident that our association with an internationally and locally acclaimed football star like Drogba will bring us closer to the football loving population throughout the African continent. whose quality and depth of work as well as versatility as an actor. According to Samsung.
" is designed to be open and will compete directly against rivals like Android or LiMo. it comes with bold colour options With Ghazini swiping the box office Samsung has enchased on its brand ambassador Amir Khan by launching Ghazini mobile games on selected models which is a smart and innovative approach of marketing strategy. which is a full-touch handset that places users at the centre of the social media revolution with full support for a wide range of social networks. it also signals the likely ends of Symbian and Windows Mobile at Samsung. Carriers will also have the option of customizing the OS to suit their own tastes. as the forecast would have Symbian gone entirely by 2011 and Microsoft's OS at just 20 percent by 2012 where it makes up 80 percent of Samsung phones today. but bada will have a central app store. It will be based on universal standards and won't consider even core aspects of the OS off-limits: developers can not only use contacts. Such a gesture will also render closed platforms like OS X iPhones and Windows Mobile the relative minority in numbers. The Corby represents a complete makeover for the youth segment. though not necessarily market share. A more formal unveiling is due in the UK for December and will be followed by first looks for developers both in December and in January. The news backs analyst claims of Samsung moving to its own platform and adopting modern open platforms. with its eyecatching design. 11 . More phones should be ready by the second half of that year while the app store will expand to 30 different countries. Linux Samsung entered into the mobile OS arena with bada. the dialer and other utilities but extend them with new features of their own. Samsung expects the very first device using bada to show in the first half of 2010 along with the initial app store. The new mobile compliments the Company‟s existing touch screen strategy “touch for every lifestyle” by broadening the market and targeting the youth audience. including bada. Recent happenings were the Samsung Corby.genders and races. whose name is based on the Korean for "ocean. If fully representative. Most details are left vague. including key countries in Europe. Samsung bada to rival Android. The software. which marks a significant break from the way full touch phones are usually designed. The Samsung Corby is notable for both its body design and colours.
Predatory Pricing This pricing strategy is followed with the intention to wipe out the competition. do not trust their quality. So Next is what? 4. they are well suited to people who want to enjoy features of a high end mobile without having a budget for the same. 12 . Rs: 12000 Rs: 9900 Rs: 9800 Rs: Rs: 9400 China-JN269 Rs: 8700 China_Elitek_85 China-GT-MD900 China-MT3300 02 Rs: 6137 Rs: 5200 Rs: 9500 China-6500S Rs: 4500 4900 China_GT_Q71 8 China-ElitekX6019 China_Elitek_X6 China_ELITEK_X6 China_Elitek_X6 010 011 012 A few samples of Chinese mobiles are shown above. Only problem that exist for the Chinese mobile phones is that consumer generally have a low quality perception associated with them and hence. Penetration Pricing: This pricing strategy is followed by companies with the intention to maximize their market share. 2. This is one of the fastest growing industries in India. China mobile phones are cheap and offer the same features as a expensive mobile from some other well known manufacturers. However.The future prospects of Samsung mobiles doesn‟t seem gloomy with the above developments and with time to come there would be a tough competition with its rivals. Pricing Strategies: 1. They believe that a higher sales volume will lead to lower unit costs & higher long-run profit. Example: China Mobile Phones in India.
This was something which revolutionized the mobile phone and telecom industry. 3. For example comparable N series mobiles from Nokia are offered at prices below Rs. Comparable mobiles phones from other manufacturers like Sony Ericson.000/.N9 & Nokia-8800 Carbon). it feels that its customers will be ready to pay for it based on its perceived value. 30.000/. 500/-. Also.to Rs. SONYERICSSON – Satio is offered for Rs. They are offered in price range of Rs. Apple can set higher prices since. Perceived value is made up of several elements such as buyer‟s image of product performance. the channel deliverables. warranty. 500/. 31.000/. 13 .& all other Sony brands are available for prices below it. 42.500/-. 31.(Except for Nokia. quality and even softer attributes such as supplier‟s reputation.Example: In the year 2003.mobile scheme where both handsets along with connections were available for Rs. Nokia are offered at relatively cheaper price. Example: A good example for this kind of pricing is Apple iPhones. LG and Samsung along with Reliance came up with Rs. Their price is set based on image of brand apple & customer affinity towards it. Perceived value Pricing: In this case the pricing is done based on the customer‟s perception about the company and its product.
260/-. At the same time it has a sleek body & robust structure. This mobile offers a large number of high end applications like: Web-Browsing. 11. Value Pricing: This is pricing strategy in which a company wins loyal customers by charging a fairly low price for a high quality offering. A image of this mobile has been shown below.500/- 4. This mobile is priced at Rs. Data Network. Email. Example: Nokia E 63 Mobile. GPS & Navigation and lots of other facilities apart from serving the basic mobile functions.Apple-iPhone-3G-S-32GB Price | Rate Rs: 42. GPRS. 14 .
300/. 4. 15 . 4.Whereas. Product form pricing: Different versions of the same product are priced differently.5.800/. The reason for difference in pricing is due to the sleek structure of Nokia-7210C. Nokia-7210C-Supernova is priced at Rs. Examples: Nokia-5000 is priced at Rs.offers almost the same features.
2009) Samsung offered discounts on Samsung Omnia mobile phone. This will reduce the burden of initial cost to the customer. 3.990/.000/-. Special Event Pricing: In this case special prices are offered during special occasions like festivals to increase the sales.6.which is priced just below Rs. Psychological Discounting: This is done to make the customer believe that product is priced cheaply or some cases just break the price barrier that customer has in his mind like price at price Rs. Promotional Pricing: 1. Nokia piloted a scheme in two Indian states where it sold handsets on a weekly instalment of 100 rupees ($2) over 25 weeks period. 31. 16 .990/-. 2. Example: Last Diwali (September. Rs. Their market price at that time was Rs. Example: In 2009. 1. 999/. Low-Interest financing: Company can offer low interest financing to customer. 33.whereas their discounted price for Diwali was Rs.
Current Trend in Mobile Industry: -. aggressive promotions. roll out obligation and substantiate equity holding in more than one telecom company. -. the mobile industry could see several mergers and acquisitions. 17 . it is forecasted to grow at a CAGR of more than 47% during 2007 to 2010.W156 prices at Rs. infrastructure development for mobile communication. -.With saturation in the urban market.Enormous opportunities are emerging for the low cost handset manufacturers along with low tariffs. 2. -.The major growth in mobile phone subscribers will be seen in C' Circle and B' Circle in short-term. -.999/- 5. -. growth in Indian mobile market will be driven by an increased focus on the rural market. However.Rural India will account for around 35-38% of the total mobile handset sales by 2010.In order to remain competitive.Rs.Example: MOTOYUVA .099/Samsung Guru. mobile subscribers in rural India accounted just 20% of the Indian mobile subscriber base.As of March 2007. 1. and handset bundle offers.
the undisputed leader is Nokia. meanwhile. for example.The industry's spectacular growth in India is attracting the attention of several international brands. pushing the national total to 363. In October 2008. are surging ahead.at less than a rupee. For handsets. The Finnish telephone giant has been in India since 1994. but the accelerant is an ever-increasing affordability of handsets and services. because rural people are using phones in ways that make a difference in their life. Nokia's share of value was 59 per cent. and will drive the total subscriber base to 500 million by 2010.000plus stores that sell Nokia exclusively. Glenn Smith reports SECTOR INSIGHT The growth of India's mobile sector has not gone unnoticed. There are also 30. again in 2001 and repeatedly dropped until today .head of Synovate Business Consulting. Only 10 years earlier. how they work. South Asia. executive director of mobile services.2 million subscribers and this absolute number is slowly declining. according to the Telecom Regulatory Authority of India (Trai).32 rupees (US$0. Naresh Priyadarshi. followed by 18 . 10." says Shankari Panchapakesan. making facilities and distribution partnerships. and Japan's DoCoMo bought into mobile operator Tata to stake its claim in the fast-expanding industry. India offers astounding growth statistics.for one billion people. which fell by half in 2000. according to Synovate. how they educate their children. and has invested in three R&D labs. "The macroeconomy won't impact this. Nokia has concept stores in at least seven major cities. The Nielsen Company.31) per minute.38. In March 1999. giving it a 90 per cent retail footprint.9 million.4 million Indians signed up for a phone service. use phones to find outlets for their catch.The sector's expansion is not expected to be hit by the economic slowdown. Carpenters carve their numbers on village walls. says Nokia has 90. India's retail outlets sold 132 million handsets worth 700 billion rupees in 2008.according toTrai." Fishermen. Together. fixed-line phones account for only 10. Women earn a living with phone exchanges. the effective charge was more than 15. India had a mere 880.000 phones.5 per cent . "Market growth is moving away from the cities and going into the villages and rural areas. Wireless operators. The expansion has been fuelled by recent economic prosperity. Virgin Mobile agreed a deal to enter the market.5 per cent. Many first-time phone buyers are opting for mobile. a penetration of 31. it is believed to be the cheapest rate in the world. most of them landlines. Last year. Mobile phone service costs have plummeted.000 distributors in India. Today. and how they access information.
To put handsets within reach of India's rural poor. the Indian government imposed Universal Service Obligations (USO) on the country's operators to build a fund that can finance the rollout of services in areas where there isn't an obvious or pressing business case to do so The first phase of mobile infrastructure deployment under the USO fund scheme commissioned six different service providers to deploy 7. according to Synovate. Samsung with seven per cent and Motorola with six per cent. Such phone services will serve as the first online experience for rural Indians.871 towers However. with mid-priced feature phones taking 28 per cent.808 rupees.casts 70 per cent annual growth to push that to 165 million rupees by 2010. Nokia is launching a subscription-based service called 'Life tools' with information on agriculture and education. sales of cheap handsets are depressing average prices. Spice Mobile halved that with its People's Phone. including lifetime prepaid activation. value-added-services (VAS) for feature phones are seen as the way forward. Among affluent urban users.500 rupees.98 million at the end of September Department of Telecom and BSNL have signed an agreement to provide 861. Smartphones account for 24 percent of sales. It is this fast-growing.46 percent from 10. To bond with rural users.Sony Ericsson with a distant eight per cent. phone makers have had to rethink product design. down by 2. Nokia's entry-level phones are now priced at 1. alarm clock and a radio. and the remainder 48 per cent .15 million at the end of the year. up 2.38 percent from 90. priced at 599 rupees. and fore. by the end of October 2009.6 percent Rural wire line connections totaled 10. Already. The Nokia 1100 included a torch.934 towers had been installed • • • 19 .68 million at the end of December.000 connections to individual users and government institutions through rural and remote exchanges by 2014 To promote rural rollout by the private operators.2 billion inhabitants live in rural communities rural teledensity was a mere 12.95 million at the end of Septemberr 2009 The rural wireless subscriber base hit 93. rapidly diversifying market that is attractive to overseas firms. Handset makers see ultra-low-cost phones as the road ahead despite the razorthin profit margins. Synovate reports VAS at 50 million rupees in 2008. Euromonitor estimates that unit prices fell 50 per cent between 2004 and 2007 to an average of 2. though they should not expect much profit in the short term Some important facts about Rural Coverage:• • • • • About 70 percent of India's near 1.being ultra-low-cost phones. only 1.
. But when a red and white cellular tower sprouted in his village. and the introduction of 3G networks. Economists have slashed Indian economic growth forecasts for this year and the stock market is in the doldrums.there are only about 40 million landline subscribers in India -. one Indian industry continues to boom: selling cellphones to the rural poor. Farmer K. a cluster of simple homes around an intersection of two dirt roads about 40 miles from India's high-tech capital of Bangalore. A large majority of them don't have access to regular landline phone networks -. Even amid the global economic slowdown.875 mobile towers to be erected Add this to the number of towers required for the five new 2G networks. additional coverage and capacity for existing operators. chief executive officer of the mobile business at Reliance Communications India Ltd. so demand will remain unaffected. he splurged on a cellphone. complete with a tender for an additional 11. his phone has changed the way he farms.P. In the village of Karanehalli. He uses it to decide when to plant and harvest by calling other farmers.• • • The second phase. and there is a huge demand for new cell sites right across the country 6. Future of Mobile Industry: Demand Among Poor Farmers Keeps an Industry Growing as Other Sectors of the Economy Are Jolted.so once cellular coverage comes to their towns or villages they scramble to get their first phones.crushing it with a massive stone roller -hasn't changed for generations. While the way his family threshes rice -. who typically earn less than $1. making India the fastest growing mobile-phone market in the world.000 a year. India's second-largest cellular company by number of subscribers. said S. Rural customers "have been hungry for mobile phones for a long time. The demand for cellphones is coming mainly from rural consumers. There is no sign of a slowdown yet: figures to be released later this month are expected to show that new subscriptions in January reached a record 11 million. But cellphone companies are signing millions of new subscribers a month.049 sites." by the global jitters. to get the best prices 20 . Shukla.T. Srinivasa doesn't have a toilet for his home or a tractor for his field. These buyers haven't been affected by plunging stock and real-estate prices or tighter bank lending since they typically don't own land and don't borrow. has yet to be started The phased rollouts associated with the USO scheme require an additional 40.
Textile and software exporters are struggling. trucks. But the cellphone industry recorded more than 10 million new subscribers in December." 21 . up 10% over the past year. and to save hours of time waiting on the road for deliveries and pickups that rarely come on time. He paid the equivalent of about $60 for his Nokia phone. "I bring it with me to the fields and anyone can reach me here. so demand will remain unaffected. On average rural Indians use their phones around 8. "Life is much better with the cellphone. Srinivasa. Mr.he doesn't know how to text message or to download emails. like close to half the 800 people in his village." Mr. India's brand new malls are sparsely populated and the sales of cars. The story is the same across rural India. Like most rural users.5 hours a month. up from eight million a year earlier. China. home to more than 60% of India's population of 1. coconuts and jasmine by calling wholesalers.2 billion. and spends about $6 each month for service.for his rice. Indonesia and Brazil also continue to show solid growth in cellphone sales. Srinivasa uses his phone to make voice calls -. as it was the first to bring them service. uses Idea Cellular Ltd. tractors and motorcycles have declined in recent months." he said from his rice paddy in the shadow of the new tower. Rural customers "have been hungry for mobile phones for a long time. The continued expansion of the cellphone industry in India stands in sharp contrast to most other industries here. The industry's overall subscriber base grew 48% in 2008 to 347 million customers.
ebscohost.php http://web.org/wiki/Communications_in_India http://www.com/Nokia_Mobile_Phones.icmrindia.htm www.com http://www.wikipedia.fonearena.mobile-prices-india. References: http://en.html www.org/casestudies/catalogue/Business%20Strategy/BSTR174.india-cellular.htm http://proquest.com/Mobile-Prices.in http://www.umi.mobile-prices-india.com/pqdweb?index=8&did=1635821441&SrchMode=1&sid=3&F mt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1264756239&clien tId=135690 22 .com/mobile_phone_pricelist.com http://www.7.vitalanalytics.
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