Mobile Phone Users in Rural India Cross 100 Million

According to Telecom Regulatory Authority of India (TRAI), the country had 109.7 million rural mobile subscribers at the end of the first quarter, which is up by 18 percent from 93.2 million users in the fourth quarter of last year.

The country's 282 million urban wireless subscribers accounted for 72 percent of all mobile users at the end of the first quarter.

Indian mobile services companies and handset vendors have identified the rural market as a new growth opportunity, as urban markets are getting saturated.

For example, Nokia has launched its Life Tools service in June, after a pilot project in the Indian state of Maharashtra. The service offers agriculture information, education, and entertainment targeted at people in both rural areas and small towns.

The number of mobile subscribers in the country is on the upswing with demand both from rural and urban markets.

According to TRAI data, the number of subscribers for mobile services across the country has increased to 391.76 million in the quarter ended March this year, up by 50 percent from 261 million in the same quarter last year.

However competition and tariff cuts have brought down the average revenue per user. Indian mobile service providers are focusing on value added services, including applications to boost revenue.

A number of foreign mobile service providers have invested in joint ventures in India, including Vodafone and NTT DoCoMo.

Tata Teleservices, which has NTT DoCoMo as an investor, has begun rolling out services across India under the Tata DoCoMo brand. NTT DoCoMo said it plans to progressively bring to India new services such as its i-mode wireless Internet service, location-based services, and mobile payment.

Amazon launches Online Mobile Phone Store

Amazon has launched a beta Web site that offers cell phones, service plans, comparison shopping features, easy rebate redemption, and free two-day shipping on AT&T and Verizon Wireless phones. Amazon’s online store for mobile phones is http://www.amazonwireless.com/

Sprint and T-Mobile are noticeably missing from the short roster of carriers. However, Amazon said it plans to add carriers and expand its selection during the beta phase, as well as test features and gather input from customers to optimize the experience.

"We have taken our eight years' experience selling cell phones to create a new site that makes a potentially confusing transaction much easier for customers," said Paul Ryder, vice president of consumer electronics for Amazon.

Clearing Customer Confusion--
According to a recent Best Buy Mobile survey reveals a large number of American adults are planning to buy a smartphone in the next 12 months, but barriers are standing in their way. Some of the barriers identified in the survey include confusion about the technology, the shopping experience, and price.

More than half of women and 42 percent of men are confused about which smartphone to buy, and more than half of adults over 50 express this confusion. Sixty-four percent of Americans say they don't own a smartphone because the devices are too expensive.

Best Buy and AmazonWireless seem ready to go head-to-head to solve these issues. Scott Moore, vice president of marketing for Best Buy Mobile, said his company offers smartphones from nine major carriers, along with unbiased, noncommissioned pros to guide consumers to the devices, features and services that are right for them.

"We offer free upgrade checks to anyone currently using any form of mobile service so customers can see if they're eligible to get a smartphone; and, in many cases, there are special promotional deals along with our everyday instant rebates," Moore said. "We want everyone to have a smartphone."

Amazon's Advantage--
Currently, AmazonWireless only offers about 120 phones, including smartphones and the latest models for budget-conscious shoppers. Customers can shop for phones by carrier, phone feature, price, color and brand. The site's shopping cart guides customers through each stage of the purchase process, and customers will find Amazon features like bestseller lists, detailed product descriptions, and customer reviews.

"The step-by-step purchase process on AmazonWireless makes it easy for customers who already have a plan to upgrade their phones," Ryder said. "If you want to establish new cell-phone service, we've made it simple to find the right phone, service plan, and options for your needs. We've also eliminated the technical jargon and frustrating rebate paperwork that customers often face when buying a phone."

Best Buy doesn't offer the same online wireless store that Amazon is rolling out, but Amazon isn't the first retailer to offer phones and plans online. Amazon will, however, be the largest.