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Article

Title: Talk is Cheap

Author: Staff Article Type: Product Analysis
Source: The Economist, v381 n8507 p68(1) Publication Date: Dec 9, 2006
  ISSN: 0013-0613
  Illustrations: Photographs
URL of Publication: http://www.economist.com

India is the world leader when it comes to growth in the number of mobile phone subscribers. India totals approximately 6.6 million new subscribers per month. India has outpaced China in the number of new subscribers per month for the first time, although it lags behind China in the number of total subscribers. The government of India believes it will catch China soon, however, and it will meet its goal of having 500 million mobile phone subscribers by 2020. The mobile phone boom is a source of national pride in India, and it is even more of a manifestation of the 'new India' than the country's high-tech offshoring industry. This is because poorer Indians can participate in the mobile phone industry. Laborers, farmers, and fishermen can obtain mobile phones, and this brings them into the economic mainstream of the country. The change in mood in India is dramatic, since the country's phone system was limited by bureaucracy not long ago. The introduction of mobile phones had been stifled by overly complicated regulations, but consumers' love of conversation ultimately outweighed the bureaucracy, and regulators have since stayed out of the way of the industry's growth. Tariffs and duties on telephone services have been rationalized, for example, and the government has loosened its restrictions on foreign firms as well.

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