The paper firstly compares the current usage pattern of mobile phone services of urban and rural subscribers and their desired pattern of mobile phone services in future. Secondly, it compares the level of activities that are being adopted by the mobile phone service providers in rural and urban areas and the subscribers’ desired level of activities to be adopted by their mobile phone service providers in future in rural and urban areas. The primary study was based on 800 respondents from the four states of India viz. Gujarat, Punjab, Tamil Nadu and West Bengal that covered the rural and urban mobile phone subscribers. A non-parametric technique Mann-Whitney U test was applied to examine the significant differences between the means of urban and rural mobile phone subscribers with respect to their mobile phone services. The results revealed that apart from work related and gaming services, significant differences emerged between the rural and urban subscribers with respect to mobile phone services usage viz. social calls, text messages, mobile internet, agriculture/commodity prices updates, application downloads, payment through mobile phone services, weather updates and social chatting. The significant differences also emerged between the two groups with respect to their desired level of usage pattern of mobile services except text messages and mobile internet. The usage for social calling, gaming, agriculture/commodity prices updates and weather updates was found to be higher in rural areas than their urban counterparts. Moreover, the results showed that the desired level of usage pattern of mobile phone services in rural areas were found to be higher in all mobile phone services than that of their urban counterparts. The study also showed that statistical significant differences emerged between the two groups with respect to current and desired level of activities carried out by their services providers. Except for pamphlets distribution in regional language, the service providers were found to be active more in rural areas than urban areas. Urban subscribers’ desired distribution of pamphlets in regional language to be higher than rural areas and in other activities, rural subscribers desired more activities than in urban areas. The study makes an empirically rigorous contribution to a relatively under researched aspect of comparing the means of urban and rural subscribers with respect to their current usage pattern, desired usage pattern, current activities carried out by service providers and desired activities of mobile phone service providers. The author recommends that private players and government agencies should take into their consideration the results of the study for diffusion of mobile phone services for reducing the gap between urban and rural tele-density in India.