Wireless user base up 12% in June quarter

Wireless user base up 12% in June quarter

New Delhi: Telecom companies are adding new subscribers by the dozen but growth in revenue per user is almost flat, according to figures released by regulator Trai.

The country’s wireless market grew at 12% during April-June with mobile operators adding 19.81 million users. This took the total base of mobile users to 184.92 million.

According to Telecom Regulatory Authority of India’s performance indicators, the gross subscriber base of wire-line and wireless services crossed the 225-million mark from 205.86 million in the quarter ending March.

Tele-density, the number of people having a phone per 100, in the quarter ending June 2007 reached 19.86 compared to 18.23 in the quarter ending March 2007.

However, the credible growth in new users was not matched by revenue as the all-India blended Average Revenue Per User (ARPU) per month for GSM remained almost at the same level of Rs297 as compared with Rs298 for the previous quarter.

The ARPU for postpaid GSM service has shown an increase of 7% from Rs613 in January-March to Rs655 in April-June quarter. ARPU for prepaid GSM, which forms 80% of the total GSM connections, has shown a slight decline of 0.8% from Rs250 in March to Rs248 in June.

In the CDMA segment, all-India blended ARPU per month for the quarter ending June 2007 rose 2% to Rs206 as against Rs202 in the previous quarter.

ARPU for postpaid CDMA service has shown an increase of 7.83% from Rs447 to Rs482 in the June quarter. ARPU for prepaid CDMA has remained same at Rs168 for the quarter.

The subscriber base for wireline service has decreased from 40.75 million to 40.09 million.

The rural picture is mixed. Rural wireline subscriber base has decreased 2.31% from 12.56 million in quarter ending March to 12.27 million in June 2007.

However, rural wireless subscriber base increased 12.85% to 37.40 million for the quarter ending June from 33.14 million in the previous quarter.