Mobile communication is revolutionizing economic and social life in rural India, spawning a wave of local entrepreneurs and creating greater access to social services according to a new study by The Center for Knowledge Societies (CKS) commissioned by Nokia. The research identifies seven major service sectors including transport, finance and healthcare that could be radically transformed through mobile technologies.

Mobile phone ownership in India is growing rapidly, six million new mobile subscriptions are added each month and one in five Indian's will own a phone by the end of 2007.  By the end of 2008, three quarters of India's population will be covered by a mobile network. Many of these new "mobile citizens" live in poorer and more rural areas with scarce infrastructure and facilities, high illiteracy levels, low PC and internet penetration. The study looks at how their new mobility could be used to bridge the growing economic and social digital divide between rural and urban areas.

Veli Sundback, Executive Vice President, Corporate Relations and Responsibility, at Nokia, said, "Mobile phone ownership in India is growing at a phenomenal pace. This new found mobility undoubtedly has the potential to make a major contribution to socio-economic development, and we recognise the responsibility we have to play a key role in achieving this. This report builds on the work Nokia has been doing in developing markets like India for several years to understand how we can deliver on our goal of making universal access to technology and the associated benefits a reality."

Dr. Aditya Dev Sood, the report author highlights how many new adopters of mobile phones have found their incomes rise, he explained these findings as the increased productivity made possible through mobile communications. "While mobile phones are widely seen merely as a communications medium, they should really be seen as a new and essential form of infrastructure that will transform a host of other service sectors in rural economies around the world," he said.

The report identifies seven service areas — Transport, Micro-commerce, Finance, Healthcare, Governance, Education and Infotainment.

The research is based on detailed ethnography and participant observation among communities living in three rural areas of India — Badaun in the state of Uttar Pradesh, Satara in the state of Maharashtra and Chittradurga in the state of Karnataka — as well as one urban area, Bangalore. Researchers meet with small business owners, farmers, home owners and others to understand how mobile communication has already transformed their daily lives and the further potential of mobile communications to enhance livelihoods.

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