Showing posts from January, 2008

Satisfying India's Communications Needs

Vasu Reddy from Chicago

Hundreds of high profile applicants are lining up for spectrum in India, and there is much confusion about when there will be clarity on who will be next in providing mobile communications for the fastest growing market in the world. There is market driven valuations floated at hundreds of billions of dollars, but nothing focused on the affordability of the services for the consumers.

To draw parallels and calculate the USA and India market affordability for about 500 minutes a month per user, we estimate that approximately $40.00 per month is spent with services with basic SMS services and 500 mobile minutes in the USA. If per capita of USA is $30,000 annually, then the percentage of income spent on an annual basis is $480.00/$30,000.00 or a 1.6% of per capita income spent on the services. If we calculate One Rupee per minute for the same service or 500 Rupees per month, or 6000 Rupees, or $150.00 on an annual basis and if the per capita inco…