Rural India Snaps Up Mobile Phones

Even amid the global economic slowdown, one Indian industry continues to boom: selling cellphones to the rural poor. Economists have slashed Indian economic growth forecasts for this year and the stock market is in the doldrums. But cellphone companies are signing millions of new subscribers a month, making India the fastest growing mobile-phone market in the world. There is no sign of a slowdown yet: figures to be released later this month are expected to show that new subscriptions in January reached a record 11 million. The demand for cellphones is coming mainly from rural consumers, who typically earn less than $1,000 a year. These buyers haven't been affected by plunging stock and real-estate prices or tighter bank lending since they typically don't own land and don't borrow. A large majority of them don't have access to regular landline phone networks -- there are only about 40 million landline subscribers in India -- so once cellular coverage comes to their towns or villages they scramble to get their first phones.