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25% of next billion mobile users will be Indians

Date: 12/23/2007 11:33:45 AM

New Delhi, Dec. 20 Although only about 1 in 20 of the first 2 billion mobile subscribers live in India, as many as 1 in 4 of the next billion subscribers will be Indians, according to a new report from Boston Consulting Group. However, the report points out that reaching these subscribers profitably will demand radical changes in products and business models on the operator’s part.

The report titled ‘Ringing in the next billion mobile consumers: A roadmap for accelerating telecom growth in India’ has estimated that around 91 million households in India belong to this next billion segment.

Categorised by income, this segment sits just above the poorest of the poor and just below consumers who are already targeted by most companies.

Mr James Abraham, a Partner and Director in BCG’s New Delhi office and coauthor of the report, said: “The next billion will be different from the first two. For the next billion, the mobile phone can change their lives, improving their economic prospects more significantly than any other tool. Understanding this and incorporating it into the revenue model is a must as average revenue per user falls to zero.”

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