India: Mobile phones to overtake fixed lines

India is one of the latest countries where there are more mobile phone users than fixed line users. This is nothing new, but the interesting fact is that the penetration in India is still so very low, standing at a current 7%. This is nevertheless up from one percent ten years back.

There are a couple of things here that needs to be observed - first, it is much easier and cheaper to erect communication towers across a country, than to install fixed lines. This is supported by the vastness of the country and the extend of the rural area.

Next, it is easier for people in rural areas - and not only here - to use a mobile phone. Basically, farmers can easier communicate without leaving their fields than going to the next place, probably farer away, to use a fixed line, even if it is a payphone.

Globally, the trend is continuing - mobile phones displace fixed lines, at least to a certain extend. This is challenging news for those companies who only focus on fixed lines, however, there are not that many which do that.