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Mobile ownership in
India is expected to exceed 100 million in 2007 as 'the largest middle class
in the world' takes up ownership. According to Research and Markets'
'India Mobile Market Statistics 2006', this would make India the third
largest mobile population in world by 2007 as middle classes 'go mobile'.
With 115.3 million
forecasted mobile owners in 2007, India ranks third in the world behind China
and the US. According to the report, Indian mobile owners are becoming younger
as a result of cheaper calls, subsidized handsets and widespread availability of
prepay lowering the barriers to ownership.
 Relatively low GDP combined with the popularity of prepaid packages still exerts
downward pressure on ARPU in India. Average revenues stand at under $8 per month
in 2006, lower than the global average at $21.30. 25 - 29 year olds spend the
most, with ARPU at over $8 pcm.
According to the findings, the rising use of data services, particularly SMS,
has stemmed ARPU decline in this age group. This is not the case among older
users where ARPU is fast in decline, particularly among 35-39 year olds where
the greatest churn to postpaid contracts can be expected.
Early indications point
to long-term growth in the Indian mobile data market, albeit mainly confined to
messaging based applications. With SMS pricing falling by up to 50 percent,
traffic has risen sharply. Messaging revenues will exceed $1 billion annually in
2007.
CYBERMEDIA NEWS
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