According to a government statement, the second quarter of 2004 saw the Indian phone subscribers grow by 9.8% year-on-year, to 81 million. Teledensity has increased to 7.5% in the second quarter, compared to 5.5% during the same period in 2003. Of the 4.5 million new subscribers added, 90% were mobile phone connections.

 

At present, only 4% of the population in India is believed to own a mobile phone. However, in the second quarter of 2004, mobile phone subscribers' share of total connections broke through the 46% mark to 37.8 million, compared to the 43.2 million basic phone connections.

 

The rapidly growing market has intensified price competition between service providers, in turn accelerating new purchases. Indian mobile phone subscribers can currently enjoy a local airtime rate as low as one US cent per minute.

 

Bharat Sanchar Nigam, run by the government, is the dominant telecommunications service provider in India. Other private players include Tata and Reliance Industries, as well as Bharti Tele-Ventures.