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India’s Telecom Service Indicators

TRAI has released a report on The Indian Telecom Services Performance Indicators for October – December 2010.

Highlights of the report

  • Wireline subscribers recorded a 1.3% decline in December 2010 quarter compared to September 2010.
  • GSM subscribers of wireless services account for 85.3% of total wireless subscriber base
  • Internet subscribers rose by 4.4% over the September 2010 quarter

A look at the financial parameters reflect a dim picture

  • Minutes of usage (MOU) per subscriber per month for GSM service declined by 2.3%, from 368 in September to 360 in December
  • Both incoming and outgoing MOU declined during the quarter
  • Average revenue per user (ARPU) from GSM subscribers per month fell from Rs 110 in September 2010 quarter to Rs 105 in the December quarter
  • ARPU from GSM was a whooping 27% lower than December 2009 levels
  • Similarly, ARPU from CDMA subscribers dipped to Rs 68 in December quarter and is 17% lower than the year-ago level

 

Telecom Statistics As On December 31, 2010
 Telecom Subscribers (Wireless & Wireline)  
Total Subscribers 787.3 million
Urban Subscribers 67%
Rural Subscribers 33%
Market share of Private Operators 84.6%
Market share of PSU Operators 15.4%
Teledensity 66.2
Urban Teledensity 147.9
Rural Teledensity 31.2
 Internet & Broadband Subscribers  
Total Internet Subscribers 18.7 million
Broadband Subscribers 11 million

Falling tariff and reduced MOU resulted in a sharp decline in ARPU of wireline and wireless subscribers.

Going further, it is expected that cellular tariffs in India are unlikely to fall, given that tariffs here are amongst the lowest in the world and voice & data charges in the telecom industry have reached rock bottom levels. So much so, that in the case of a few companies, operational expenses are higher than revenues, because their inter-connect costs are greater than the tariff they are charging. Hence, there exists little scope for further price reductions.

 Read full report

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Categories: Telecom
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