Mobile numbers set to cross half-billion mark in India

India may have already reached the landmark of half a billion wireless connections - a number that was unthinkable even a few years ago. The country had 488.40 million wireless connections at the end of October; and will cross the 500,000,000 (50 crore) mark by the start of the new year, if it has not already done so. Only China has more mobile subscribers.

It might however be more accurate to say that the country has half a billion mobile numbers rather than users, as several users hold multiple SIM cards that are not all in use at the same time. Moreover, unlike in other countries, there is no system of returning SIM cards that are no longer in use; so the numbers of discarded phones continue to be on the books.

Overall telephone connections in India (fixed line and wireless) will be closing in on 550 million by the start of next year. This translates into a teledensity of roughly 45 per cent, with an urban teledensity close to 97 per cent and a rural teledensity of about 18 per cent.

But fixed line connections are down to 37.25 million phones, exhibiting a clear consumer preference for wireless phones. This may be partly explained by the fact that obtaining a wireless connection is much easier than getting a fixed line phone, which still requires considerably more formalities.

India's broadband penetration, however, is abysmally low at 7.5 million - a consequence, say telecom experts, of policy failure.

In spite of - or perhaps because of - the burgeoning growth of mobile telephony, the last two years have been full of controversy and litigation in the sector, with government and industry divided on crucial issues like spectrum policy, tariffs and introduction of more competition.

It should also be remarked that mobile services in India are quite basic compared to other countries, not going much beyond voice and text messages.