Bihar, MP drive mobile growth

Bihar, MP drive mobile growth

The growth of Indian telecom market is propelled not just by the subscriber base of metros and large cities, but by otherwise under-developed states of Bihar and Madhya Pradesh, according to a report by industry body Assocham. Bihar registered maximum increase in annual telecom subscribers, registering a growth of 88.2 % in 2007-08 compared to 51.1% in 2006-07, the report states.

According to Assocham’s state-wise analysis of mobile subscription, Bihar, Madhya Pradesh, North East and Orissa have registered an upsurge in user base during the previous year. Owing to government's initiative in promoting infrastructure sharing, major telecom players have forayed into the unexplored markets of Bihar and Madhya Pradesh.

The report also attributes the rapid mobile growth in these states to a growing middle class, low tariffs and cheap handsets. With the metropolitan market reaching saturation, telcos are turning towards the rural and semi-urban markets. As a result, India has seen an upsurge in the number of low- cost, high-end handsets, which have fuelled rapid growth in mobile use.

Source ET