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B&E Indicators
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B&E Indicators

Issue Date - 15/09/2011
Growing rural-urban divide

After a phase of robust growth, the Indian telecom juggernaut appears to be slowing down. The number of net mobile connection additions in May 2011 was about 35% less as compared to March 2011. Further, the gap between urban and rural teledensity has widened over the last decade. This is evidenced by rural mobile teledensity of only 35% as compared to urban mobile teledensity of 156% in June 2011.

Slowdown in growth in rural areas

The gap can widen even further as rural growth slows. Itís evident that the urban markets are almost saturated whereas, there is a lot of untapped demand in rural India. Thus, additional investments are required for rolling out services to the unconnected population in rural areas. Moreover, with Indiaís broadband penetration being abysmally low at about 1%, investments are needed to deploy 3G services and meet the latent demand for broadband across India.


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