GSM Mobile Study - the mobile phone market in India, and research into phone use by children.

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A STUDY ON

MOBILE USAGE AMONGST CHILDREN

Table of contents

References        

Chapter 1

INTRODUCTION

This chapter highlights the followings….

1.        India as a country & its major economic indicators

2.        Indian mobile industry & wireless services

3.        Details about service providers present in India

4.        Average Revenue per user (ARPU) &

5.        Minutes of usage (MoU)

Introduction

India is one of the oldest civilizations in the world. It has achieved multifaceted socio-economic progress during the last 59 years of its Independence. India has become self-sufficient in agricultural production, and is now the tenth industrialized country in the world and the sixth nation to have gone into outer space to conquer nature for the benefit of the people.

It covers an area of 32, 87,263 sq km, extending from the snow-covered Himalayan heights to the tropical rain forests of the south. As the seventh largest country in the world, India stands apart from the rest of Asia, marked off as it is by mountains and the sea, which give the country a distinct geographical entity.

India is a  of twenty-eight  and seven . All states and the two union territories of Puducherry and the National Capital Territory of Delhi have elected governments. The other five union territories have centrally appointed administrators and hence are under direct rule of the President. In 1956, under the States Reorganization Act, states were formed on a linguistic basis. Since then, this structure has remained largely unchanged. Each state or union territory is divided into basic units of government and administration called districts. There are nearly 600 districts in India. The districts in turn are further divided into tehsils and eventually into villages.

Administrative divisions of India, including 28 states and 7 union territories

States:

India is the world's second most populous country. With an estimated population of 1.13 billion.  Almost 70% of Indians reside in rural areas, although in recent decades migration to larger cities has led to a dramatic increase in the country's urban population.

There are total 5126 urban towns and 638365 villages In India. All Urban cities are divided based on populations. As per Census of India, population size in each town class is as follows:-

As per Census of India, Rural villages can be defined as:-

  • 75% of population depended on agriculture,
  • Population is less than 5,000
  • Population density is less 400 per sq km

India's literacy rate is 64.8% (53.7% for females and 75.3% for males). The national human sex ratio is 944 females per 1,000 males. India's median age is 24.9, and the population growth rate of 1.38% per annum; there are 22.01 births per 1,000 people per year.

The economy of India is as diverse as it is large, with a number of major sectors including manufacturing industries, agriculture, textiles and handicrafts, and services. Agriculture is a major component of the Indian economy, as over 66%

Of the Indian population earns its livelihood from this area.

The service sector is greatly expanding and has started to assume an increasingly important role. The fact that the English speaking population in India is growing by the day means that India has become a hub of outsourcing activities for some of the major economies of the world including the United Kingdom and the United States. Outsourcing to India has been primarily in the areas of technical support and customer services.

In general, the Indian economy is controlled by the government, and there remains a great disparity between the rich and the poor. Ranked by the exchange rate of the United States Dollar, the Indian economy is the 12th largest in the world.

In Purchasing Power Parity GDP, the figure for India was 1.5 trillion US Dollars in 2008. GDP of India is US $ 3787.3 billion in PPP terms.

The per capita income of India is 4,542 US Dollars in the context of Purchasing Power Parity. This is primarily due to the 1.1 billion population of India, the second largest in the world after China. In nominal terms, the figure comes down to 1,089 US Dollars, based on 2007 figures. According to the World Bank, India is classed as a low-income economy.


Recent trends have seen India exporting the services of a numerous information technology (IT) professionals. IT professionals have been sought for their expertise in software, software engineering and other financial services. This has been possible as a result of the high skill levels of Indian IT professionals.

Other areas where India is expected to make progress include manufacturing, construction of ships, pharmaceuticals, aviation, biotechnology, tourism, nanotechnology, retailing and telecommunications. Growth rates in these sectors are expected to increase dramatically.  

Over the years the Indian government has taken an economic approach that has been influenced, in part, by the Socialist movements. The Indian national government has maintained a high and authoritative level of control over certain areas of the Indian economy like the participation of the private sector, foreign direct investment, and foreign trade.

 It may be observed that in spite of the tremendous debate about the justification of the privatization of industries traditionally owned by the government, the process of privatization has still continued at a steady pace.

The Indian Education System

The Indian education system is based upon 12 years of schooling (10+2), which includes primary and secondary education. The K-12 schools are divided into three categories – primary (I-V), upper primary (VI-VII), and high (IX-XII). Colleges are affiliated to universities and Secondary schools are affiliated with central or state boards. These boards specify the curriculum and conduct examinations at the end of the year.

The transition from high school to college is devastating for many to say the least. Students get locked into arts, science, commerce, or medicine streams after the first set of board examinations in the Xth grade (sometimes even before). While there is some flexibility of movement within these fields (engineering versus basic science), there is almost none between them. Once in college, a student choosing biology (in the hope of becoming a doctor) cannot take mathematics as a co-major. Even though about 70 percent of the high school graduates get admission to some college.

Indian Mobile Industry

The Mobile telecommunications system in India is the second largest in the world and it was thrown open to private players in the 1990s. The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several private players run local and long distance telephone services. The country is divided into 23 telecommunication circles for mobile services, including 4 Metros. These circles are divided into category A, B and C depending on the value of the revenue in each circle.

Although mobile telephones followed the New Telecom Policy 1994, growth was tardy in the early years because of the high price of hand sets as well as the high tariff structure of mobile telephones. The New Telecom Policy in 1999, the industry heralded several pro consumer initiatives. Mobile subscriber additions started picking up. The number of mobile phones added throughout the country in 2003 was 16 million, followed by 22 million in 2004, 32 million in 2005 and 65 million in 2006. The only country with more mobile phones than India is China – 574.63 million as of the end of March 2008.

India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service.

The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$5.only. Competition has caused prices to drop and calls across India are one of the cheapest in the world. The rates are supposed to go down further with new measures to be taken by TRAI (Telecom Regulatory Authority of India)

Indian mobile operators are adding over 8 million subscribers a month now a days,, with a majority of the new users being from rural areas/smaller towns. While the total mobile subscriber base was 261.07 million, wire-line subscriber base was 39.05 million by March 2008. According to a report by Gartner Inc., India's mobile subscriber base is projected to exceed 737 million connections by 2012 growing at a CAGR of 21 per cent and India is likely to remain the world's second largest wireless market after China in terms of mobile connections. The overall cellular services revenue in India is projected to grow at a CAGR of 18 per cent from 2008-2012 to exceed US$ 37 billion. Cellular market penetration will rise to 60.7 per cent from 39.8 per cent in 2007.

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  1. Wire line Services

Wire line services subscriber base stood at 39.42 million in quarter ending March 2008 as compared to 39.25 million in quarter ending December 2007

Rural Wire line Subscriber base stood at 11.64 million in quarter ending March 2008 as compared to 11.75 million in quarter ending December 2007.

  1. Wireless Services

The Wireless subscribers have reached to 261.07 million as on 31st March 2008 as against 233.62 million subscribers in the previous quarter. During this quarter 27.45 million subscribers were added.

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