Home > Telecom > GSM subscribers cross 1.23 crore in June 2010

GSM subscribers cross 1.23 crore in June 2010

The GSM-based cellular service providers have reported subscriber additions of 12.3 million (excluding RCom and Tata Tele) during June, against an addition of 11 million subscribers in May, taking the total subscriber base to 456.59 million, according to the Cellular Operators Association of India (COAI).

  • Bharti Airtel added the highest number of subscribers (three million) during the month of June, taking its outstanding subscriber base to around 137 million.
  • Vodafone registered an increase of 2.7 million new subscribers, followed by Idea Cellular at 2.16 million.
  • Accounting for 14.6% of the market share, BSNL added another 1.1 million new users in June while Aircel added 1.6 million new subscribers both in May and June.
  • New entrants, including Uninor and Videocon, added 1 million and 0.55 million subscribers, respectively.
  Additions during June ’10
Bharti Airtel

30,00,696

Vodafone Essar

27,13,336

IDEA

21,59,737

BSNL

10,97,233

Aircel

16,00,044

Reliance Telecom

n.a.

Uninor

10,10,726

MTNL

44,413

Loop Mobile

15,112

Videocon

5,47,821

Stel

93,259

Etisalat

8,074

All India

1,22,90,451

The increase in subscriber base is mainly due to attractive discounted tariff plans offered by companies. A large number of new subscribers are small value customers. This means they have lesser minutes of usage (MoU). With a decline in tariff rates (per minute charge) and lower minutes used, average revenue per user (ARPU) declined.

This had led to poor sales and profit performance of the industry in FY10.

Telecom operators are likely to receive 3G spectrum by September 2010. However, 3G services are expected to take at least 5-6 months to penetrate the market. It must also be noted that 3G services are high-value services that are expected to aid the growth in ARPU of telecom companies. A probable challenge in this case could be availability of inexpensive, 3G-enabled mobile handsets.
Till then, falling ARPUs and MoUs are expected to result in stagnation of sales, in spite of robust growth in subscriber base.

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Categories: Telecom
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