A study released last week by the research firm Gartner stated that the Indian cellular services market had recorded the highest growth across the Asia Pacific and Japan region in 2004 with a CAGR of 67 percent. Revenues from the Indian cellular services market will reach $24 billion by the end of 2009, at a compound annual growth rate (OTCPK:CAGR) of 35.6 percent.
Rival cell phone operators Tata Indicom and Airtel fight it out in television ads, driving home the message that cell phones cost very little these days.
The cell phone revolution in India was triggered by Reliance Infocomm, a subsidiary of Reliance Industries. In 2002 the company offered phones that were practically free through a buy-today-pay-later scheme that dropped talk-time prices to record lows. While Reliance Infocomm was a late entrant in the overall cell market, the company pioneered services such as Internet connectivity, rich-media applications, and text messaging in Indian languages. [Red Herring]