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India Handset Distribution Will Make or Break Operators
Robust Rural Handset Distribution Is Key to India Vendors Survival
Boston, MA - 1 May 2008 - The Strategy Analytics Emerging Market Communication Strategies service report, "Handset Distribution Environment in India," establishes that distribution patterns in rural India and customer response to vendors' offerings will be crucial to the success of both handset vendors and operators in the Indian market.
Beyond maintaining margins, vendors need to overcome rural challenges like dismal infrastructure and after sales service, as well as the need to educate customers and retailers about product benefits. . Vendors operate on wafer thin margins, a scenario projected into the next five years, as well. The overall teledensity of rural India is a meagre 4% and Indian mobile teledensity is negligible. Thus, there are immense opportunities for both handset vendors and operators in these markets.
Rahul Gupta, Manager, Emerging Market Communications Strategies for Strategy Analytics said, "There is a huge untapped potential in the Indian market and a big opportunity lies ahead for all stakeholders. But success will depend on customer response to the handset vendors' service offerings, and the ability of vendors and operators to serve those communities both adequately and cost-effectively ."
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