Companies & Sectors
GSM telecom subscriber additions: Uninor, Idea lead the pack; tariff hikes expected & 3G revenues could be a key growth driver

Monthly net GSM subscriber addition rate inched up to 6.53 million net additions in September 2011, against 5.34 million in August 2011. Addition rates are likely to remain depressed in the medium due term due to the saturated urban market and difficulty in rural penetration

With the festive season in progress, monthly net subscriber addition rate inched up to 6.53 million net additions in September 2011, against 5.34 million in August 2011. This is lower than the first quarter of 2011-12 average of 9.86 million and the yearly average of 13.61 million for 2010-11.  

Subscriber addition rate is likely to remain depressed in the medium term as (a) operators have difficulty in growing in a saturated urban market; and (b) building up volume in rural markets will require time & effort in enhancing marketing and network infrastructure. These are the observations made in a report released today by BRICS Securities Limited.

Idea maintained the lead in net additions among incumbent operators though net additions for all declined a month-on-month basis. It added 1.74 million subscribers in September 2011 against 2.33 million subscribers in August 2011. This is due to new circles contributing 28% of new subscribers. Idea has 13% market share in the total subscriber base.

Bharti’s subscriber base in India touched 172.8 million, as monthly additions declined to 0.94 million in September 2011 against 1.15 million in August 2011. Of the subscribers added, 74% were in circles where Bharti has a 3G license. Subscriber additions for Vodafone dropped to 0.85 million in September 2011 against 1.13 million in August 2011.

Uninor added 1.92 million subscribers in September 2011, highest among GSM operators against 0.35 million in August 2011. The increase in subscriber additions were from Uttar Pradesh (East and West), Bihar, West Bengal and Maharashtra circles, where it added 1.65 million subscribers in September 2011 against 0.15 million in August 2011. New cellular operators have been struggling to make significant subscriber addition.

The draft new telecom policy 2011 signals easy exit policy and license surrender—it is expected that new operators will revisit their business plans when the policy comes into effect. Incumbent operators will be able to gain revenue market share in spite of weakening subscriber market share. Decline in competitive intensity is expected to lead to tariff hikes. Regulatory uncertainty may recede with the new policy and with the adoption of 3G services, operators may be able to post incremental revenue.

User

Used Cars: Resale Values Crash

There are no takers for pre-used  luxury petrol-driven cars

It has reached a point where an...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
ULIP: ICICI Pru Elite ULIPs for the Rich

Ticket size is Rs2 lakh and Rs5 lakh

ICICI Prudential Life has launched ‘Elite Life’ and...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)