Cheaper call tariffs and expanding networks have helped mobile operators add subscribers at a furious pace, making India the world's fastest-growing wireless market.The country added a record 44.5 million subscribers in January-March, boosting the total to 392 million, after the No. 2 player Reliance Communications expanded its GSM network and rivals such as Vodafone Essar and Idea Cellular also expanded.
In contrast, China's mobile phone industry is slowing.China Mobile, the world's largest mobile carrier with about 480 million subscribers, said last week its first-quarter net profit growth slowed to 5 percent, despite a near double-digit rise in revenue.
Consultancy Gartner expects the number of India's mobile phone subscribers to nearly double to 737 million by 2012, but years of cut-rate competition is beginning to affect some players.
"As the companies are getting majority of the new users from rural areas, net profit margins already under pressure are going to be further hit," said R.K. Gupta, a fund manager at Taurus Asset Management, who oversees about $40 million in stocks and owns shares in Reliance Communications and Idea.
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