Revenue per mobile user fell sharply in June quarter

CA Manish K Dhoot (CA, B. Com, NCFM, CPCM) (5015 Points)

02 October 2009  

 With increasing competition due to new mobile telephone operators coming into the market, the average revenue per user (ARPU) for GSM and CDMA services declined sharply by up to 10 per cent in the April-June quarter this year.

The ARPU for GSM-based mobile services has declined by 10 per cent to Rs 185 in the April-June quarter from Rs 205 in the previous quarter, while for CDMA services it declined by 7.2 per cent to Rs 92 during the quarter from Rs 99 in the previous one.

The wireless user base, however, hit 427 million by the end of June this year, with additions of 35 million subscribers, a growth of 9.06 per cent.

The total telecom subscriber base (wireline and wireless) reached 464.8 million for the quarter ended June this year, registering a growth of 8.17 per cent. Teledensity reached 39.86 during the quarter, as compared to 36.98 in the previous one.

The subscriber base of wireline services declined to 37.5 million at the end of June.

The minutes of usage (MoU) per subscriber for both GSM and CDMA declined. For GSM services, the MoU declined by 6.19 per cent, from 484 in the quarter ended March to 454 in the quarter ending June. For CDMA services, the MoU declined by 4 per cent, from 357 in the quarter ended March to Rs 342 for the quarter ended June this year.

The internet users’ base reached 14 million for the April-June quarter, from 13.5 million in the previous quarter, showing an increase of about 3.8 per cent.