Indian market is extremely different – be it Retailing or Wireless. Today I am going to take you into some myths and realities of the mobile sector. The following study is based on the data good for the year ended Dec-08.

  • Highest MOUs in C Circle – Concern on quality of subscriber partially addressed with strong MoU growth witnessed in C circles. Outgoing MOUs at 245 for C circles is in fact marginally higher than the national average (241), despite the narrowing of penetration gap. Lower fixed-line penetration in C circles makes mobile the primary communication device which boosts MOU. Meanwhile, SMS usage seems to be picking up again.
  • Proportion of on-net calls varies materially across circles – The percentage of on-net calls varies from 48% in metros to 70% in C circle. A key reason for this trend could be market share concentration. In our study we found that, the metros with an average of 25% market share for the largest operator have 48% of on-net calls versus 70% for circle C where the average market share for the largest operator is 36%.
  • Fixed-to-mobile substitution more prevalent in rural areas – Declining tariffs,
    innovative services (lifetime, micro pre-paid) and success of Fixed Wireless Telephone have turned wireless into an increasingly preferred mode of communications in the rural areas. This is reflected in higher fixed-line disconnections in rural areas.

It happens only in India 🙂