Bihar and MP propelling India’s telecom growth revolution

Bihar and MP propelling India’s telecom growth revolution
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First Published: Tue, Jun 10 2008. 02 30 PM IST
Updated: Tue, Jun 10 2008. 02 30 PM IST
New Delhi: India, the second largest telecom market in the world is deriving its growth in subscribers’ base from the otherwise underdeveloped states of Bihar and Madhya Pradesh. The state of Bihar registered maximum increase in annual telecom subscribers, registering a growth of 88.2% in the previous fiscal as compared to 51.1% in FY 2006-07, according to an Assocham Eco Pulse (AEP) state-wise analysis of mobile subscription.
Robust telecom growth witnessed in the last few years is a clear indicator of the immense potential in the Indian market. A region-wise analysis showed that Central India registered maximum growth of 84.5% in mobile subscription followed by the east with 75.3%, North East with 70.7%, south with 56.4%, west at 55.9% and north at 52.7%.
Key Findings
* Apart from Delhi, Mumbai, Kolkata and Chennai. it is Bihar, Madhya Pradesh, West Bengal, North East region and Orissa that have registered an upsurge, with major players entering unexplored markets and expanding operations
* Fast growth in mobile usage is attributed to growing middle class, low tariffs and economic handsets
* Telecom story continues to hit the roof with the wireless boom that has drastically altered mobile subscription by increasing subscribers’ base from 165,093,655 in FY 2006-07 to 261,081,713 in FY 2007-08
* A state-wise breakup of wireless penetration reveals that the total number of mobile phones in Bihar increased from 57,73,370 in 2006-07 to 108,69,459 in 2007-08
* While metros reached their saturation point, next phase of telecom growth is being driven by sub-urban places like Bihar, Madhya Pradesh and Orissa
* Launch of various lifetime plans has led to a spurt in the number of mobile users with mobile subscription in Madhya Pradesh increasing from 66,82,326 in 2005-06 to 124,91,306 in 2007-08
* Excluding mobile connections in metros like Kolkata, the state (West Bengal) registered an increase of 86.1% in subscriber volumes from 84.4% in FY 2006-07; in volume terms, it increased from 5040111 in FY 2006-07 to 9381095 in last fiscal
* Falling tariffs rates and aggressive marketing by major telecom players contributed to the rise in subscriber base; Orissa registered an increase of 74.8% in previous fiscal as compared to 36.4% in FY 2006-07
* With companies continuing to penetrate deeper, North Eastern region witnessed a whopping growth of 241.6% in FY 2005-06, but due to infrastructural bottlenecks and technology constraints, growth rate declined to 139.8% in 2006-07; yet overall, the region witnessed a healthy subscriber growth of 76.3% last fiscal
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First Published: Tue, Jun 10 2008. 02 30 PM IST