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Indian mobile sector grows 4.8% in July

New subscriber additions by India's mobile phone industry rose 4.8 per cent in July from the previous month after many cellular phone firms announced a slew of incentives to grab customers.

Data released by the Cellular Operators Association of India showed on Friday that the industry, expected to be one of the world's fastest growing markets this decade, added 351,040 customers in July.

This raised the total subscriber base to 7.69 million users, which represents a 79 per cent year-on-year growth. The industry expects to have some 12 million users by the end this year and 50 million by 2006, making India one of the top five markets globally.

Last month several money-losing cellular firms unleashed a price war by reducing roaming and short text message charges and making incoming calls free within their networks to boost market share.

India's telecom sector is carved into 22 circles or zones, classified as 'metro' and 'A', 'B' and 'C' circles, based on subscriber potential.

According to the COAI data, the subscriber base in 'C' circles, which has the lowest subscriber potential, leapt 91 per cent year-on-year to 267,116 users at the end of July, while in the lucrative 'metro' market, it surged 89 per cent to 3.10 million users.

The subscriber base in 'A' circles jumped 69 per cent to 2.47 million, while the 'B' circle grew rose 77 per cent 1.85 million customers.

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