> Some villages only have one cell phone that everyone shares
You don't seem to be talking from experience and seem to be simply conjecturing. I am in India. I have never heard of any village sharing just one cell phone. It is not even plausible. Now, it used to be, several decades ago, that there were just a handful of landlines per village. But a cell tower will not be setup unless the provider is sure that there is demand for enough to make an economic case. And there always is. Mobile phones are not expensive (but not cheaper than the cheap options in US). Mobile plans are however incredibly cheap compared to US. I know poor ($13 rent for a family of 4) families in India who have multiple mobile phones, one per working adult.
> So think of it as each person in India putting out $1100 for their phone
Poor people are not buying smartphones yet (its the lower middle class and up that is driving smart phones now). They still buy Nokia dumb phones and are now beginning to shift to cheap Android phones at $100. Firefox Phone helps by further lowering that barrier of entry. The minimum monthly talk refill plan I know is 30 *cents*... very cheap. You may not get many outgoing minutes, but you don't get charged for incoming calls, unlike US. So everyone in India who needs one, can afford a mobile phone plan.
$1100 for a phone is very expensive in India. I know several people who have them, but they are all rich. And it is often a status symbol rather than for an actual need.
> which they use in lieu of land line, TV and computer
No one in India uses a smart phone in lieu of a TV. Having cable TV (60-80 channels) in India is very cheap ($3 per month in poor neighborhoods). Indian mobile data plans start very cheap ($2) but are not robust enough to be used for routine video consumption yet. They won't be replacing TV anytime soon. Anyone who owns a $1100 mobile phone already has a pricey HDTV.
Mobile phones are also not replacing computers yet since most of the phone users, unlike US, were not computer users to begin with. People here use cheap service stations nearby, to pay bills online, where the operator sits in front of an online PC, accepts cash and pays bills for a few cents of service charge. This is much simpler for most people than using data plans and mobile web apps, for now. Around here (a small town), there is such a tiny store for every neighborhood and they provide small jobs that serve populace that is not yet computer savvy enough.