Moody’s Corporation, a global rating agency headquartered in New York City has termed India as the “world’s fastest growing telecom market”. As per the official statement released by the company, India’s net additions of 10 million subscribers per month have far outpaced China’s monthly rate of increase which is now below 8 million. About two years ago, China was having the maximum number of new subscribers on a monthly basis.
Moody’s explained that emerging markets with relatively low penetration continue to have above-average rates of increase in new subscribers, but those numbers tend to slow down in a while. However, in India the numbers seem to be growing by the day.
The agency pointed out that Indian telecom players are using innovative means such as outsourcing network management and sharing mobile infrastructure to keep costs low in extending services to under-served rural areas. Which is why the Indian telecom market operates on the lowest cost in the world and also offers the lowest tariffs to consumers averaging to 44 paise/minute. The Indian market has one of the highest number of operators in the world and the number of operators are increasing each year.
This is definitely a laudable milestone and a great achievement. However, we see this as just the beginning as the penetration of mobile services in India is only 39% when compared to 150% in Hong Kong and 54% in China. The Indian telecom operators still have a huge rural population to tap in and for that they would have to continue with their cost control and innovative operational mechanism. Plus if they get the required support and a little sacrifice from the Government of India than no one can stop India from becoming the largest telecom market in the world.
Source: The Economic Times