by Paul Joseph
February 11, 2011
Featured
Sometime back in July last year, we covered a story on the growth of mobile subscribers in India. Adding onto this, a recent TRAI report also said that there were 752.19 million subscribers in December 2010. But are all of these active? Certainly not if we have to go by the report that says only 70% of the subscribers are active. And Bharti Airtel has emerged as the top player having maximum number of active subscribers’ base. The Business Standard reported of the India’s largest telecom operator having as many as 91.8 % subscribers active. Next to Airtel is Idea Cellular with 90 % active subscribers in its network. Vodafone, on the other hand, scores abysmally low with less than 76% active users in its home network. State owned BSNL and MTNL have 57% and 35.6 % active subscribers in respectively in their GSM networks. The latter has just 27% in its CDMA network. It is quite surprising to know that new private entrants like Videocon, Etilasat, Uninor and MTS(Sistema Shyam) have fared quite well in the face of the government funded MTNL. They have registered 37%, 36%, 45% and 49% of active subscribers respectively. Tata Teleservices’ accounted for 49.7% active users for its Tata DoCoMo network (GSM) and 46.5% for its Tata Indicom network (CDMA). The following table from the TRAI report shows the detailed accounts of all the players in India. (Image Credit : TRAI report ) Coming to the circle-wise distribution, Jammu Kashmir, Assam and Maharashtra have the highest number of active mobile subscribers vis-à-vis other Indian states with 81.8%, 79% and 77.7 % respectively. However, Mumbai city ranked the lowest with 58% among others. The following is the circle-wise distribution of active subscribers of all Indian states. (Image Credit : TRAI report ) Sify Finance reported of Bharti denying claims from other mobile operators that the company has inflated the numbers. In its statement, the company said, “ The latest TRAI (Telecom Regulatory Authority of India) report on VLR (Visitor Location Register) numbers once again reiterates Bharti Airtel’s transparent reporting of customer numbers. With close to 92 percent active customer base, Bharti Airtel has ranked as the number one among all operators,”. It further added, “The Company’s subscriber base consisted of active users, unlike some of the other telecom firms who had a huge percentage of inactive SIM cards masquerading as subscribers.” Today, the telecom ministry of the government of India is boiling under 2G scam. And the much anticipated Mobile Number Portability (MNP) has failed to make a big influence on mobile subscribers ( at least for now). Around 17 lakh subscribers have applied for the MNP service. This is just about 0.2 % of the total mobile subscribers in the country. All in all, MNP has not yet become the game changer, as it was expected to be. So, the scenario now is not so favorable for those operators which were possibly planning to lure customers by offering some happy-to-accept offers. For time being let us see how far Bharti is able to keep up with the figures today. What do you think? REGISTER FOR WATSUMMIT – INDIA’S FLAGSHIP SUMMIT ON DIGITAL MEDIA REGISTER NOW! Related Posts GSM Shows A Marginal Dip In August Subscriptions 3G Rollout Will See Telcos Working Together To Maximize Coverage Mobile Number Portability’s Data Churn And How Telcos Will Implement It! DoCoMo Initiated 1 paisa/sec Goes International Via Videocon – Call US, Canada October Telecom Stats: Subscriber Base At 52.56 Crores, Telecom Density Reaches 44.87 Percent
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by Paul Joseph
October 7, 2010
Featured
Cut. Pain. Endure. Heal. This is the story of the Indian telecom sector. Last time around, Telenor was bleeding and we dripped that here . Now, it is not that it has stopped bleeding but the commitment to endure has come . Mr. Sigve Brekke, Asia Head and Managing Director of Indian Operations of the Telenor group, announced the change in strategy for the Indian market stressing on focusing on the mass market and thus, driving the voice service aggressively. Very honestly, I applaud this statement. It is very encouraging to see such visions where fundamentals of a market are stressed on to justify the business. The expansion will be funded through debt (Rs. 9,000 crore) which is not a big problem according to him as banks are seeing potential in the sector. The expectation of becoming EBIDTA positive in three years is substantial. EBIDTA is Earnings Before Interest, Taxes, Depreciation and Amortization. Basically, it gives an idea of the company’s operating cash flow. This number is particularly important here because telecom is a sector with large fixed assets cost. Now, the value of these assets depreciates every year and that reflects on your balance sheet. Essentially, from an operating point of view depreciation is immaterial and so to objectively assess your operating revenues, you take the EBIDTA. Cash positive simply means that the company will be generating surplus cash atleast in the short term. The five year timeline is reasonable taking into account the EBIDTA positive expectation is in three years. Uninor (the joint venture between Telenor and Unitech) has seen a jump from 0.008 million new customers during May to 0.85 million new customers during July increasing its market share from 0.81% to 1.05% (Source: TRAI). Whether the endurance continues over to healing or a new cut spoils the recovery is a question of time which we’ll spill out as soon as it arrives. Attend Workshop On Social Media For Brands (Delhi & Mumbai) REGISTER HERE Related Posts Telenor – Indian Telecom Sector This Decade’s Dot Com Bubble? Bailout Alert – Govt. May Reduce Failing Telcos’ Pain Telenor may pick up 26% stake in Unitech Wireless for $500m; DoCoMo eyes Minority Stake in Tata Teleservices Mergers On The Cards In Indian Telecom Sector Mobile Social Networking – It’s Not a Fad!
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