Rural India driving mobile growth - Chart Of The Day 8 December 2012 - Equitymaster

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Rural India driving mobile growth
Dec 8, 2012

Most of the consumption stories doing the rounds in India show a huge potential in the untapped rural markets. After all it is home to two-thirds of the country's one billion-plus population. But the sector where the story is playing out in reality is the Indian telecom sector. The increasing penetration of mobile telecom services in rural areas is being acted out in reality. As shown in the chart, the urban markets seem to have reached a saturation level with tele-density in excess of 160%. On the other hand rural tele-density is on the rise. The rising rural tele-density is clearly indicative of the much-larger drama unfolding in the Indian telecom market. Though growth in subscribers has eased off in recent times, nevertheless the underpenetrated rural markets continue to present a huge opportunity for telecom operators.

Data Source: Telecom Regulatory Authority of India (TRAI)

This Chart Of The Day was published in The 5 Minute WrapUp - Ratan Tata blames the government

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