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India Telecommunications Report Q4 2010

India Telecommunications Report Q4 2010

Table of Contents

Management Report
Published: October 2010
Pages: For full details, please email keithw@cmsinfo.com
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 331.25  Buy Now!
Research from: Business Monitor International
Sector: Networks & Infrastructure

This quarter’s India telecommunications report update continues newly released data for the country’s telecoms sectors of mobile, fixed-line, internet and broadband. It also contains not only revised figures for the fixed-line and broadband sectors, but also for Indian mobile average revenue per user (ARPU) rates. As always, our forecasts and market analysis sections make full use of new data published by the operators and India’s regulatory authority, the Telecom Regulatory Authority of India (TRAI). While we note the continued growth of the Indian mobile market, rising by 48.7% y-o-y to 635.510mn subscribers, bringing penetration rates to 52.6% at the end of June 2010, the annual growth exhibited leading up to June 2010 was only slightly lower than the 49.2% y-o-y increase ended March 2010 to 584.3mn. Much of this growth has been dominated by prepaid subscribers, which account for roughly 95% of the market, and have been responsible, together with competitive price plans, for the continued decline in blended ARPUs. This quarter’s India telecommunications report update continues newly released data for the country’s telecoms sectors of mobile, fixed-line, internet and broadband. It also contains not only revised figures for the fixed-line and broadband sectors, but also for Indian mobile average revenue per user (ARPU) rates. As always, our forecasts and market analysis sections make full use of new data published by the operators and India’s regulatory authority, the Telecom Regulatory Authority of India (TRAI). While we note the continued growth of the Indian mobile market, rising by 48.7% y-o-y to 635.510mn subscribers, bringing penetration rates to 52.6% at the end of June 2010, the annual growth exhibited leading up to June 2010 was only slightly lower than the 49.2% y-o-y increase ended March 2010 to 584.3mn. Much of this growth has been dominated by prepaid subscribers, which account for roughly 95% of the market, and have been responsible, together with competitive price plans, for the continued decline in blended ARPUs.

That said, 3G is to make a greater appearance during the second half of 2010, with a number of operators announcing contracts with vendors to deploy 3G networks, and could help to counter some of the impact that low-spending prepaid subscriber are having on ARPU.

Tata Teleservices announced in September 2010, it had selected Chinese telecoms equipment and solutions vendor Huawei Technologies to supply infrastructure equipment and deploy 3G networks in five of its nine telecom circles in India. In August 2010, Reliance Communications agreed to launch a mobile music service on its 3G network in partnership with Universal Music. In announcing the deal, Reliance has confirmed that it will be launching 3G in at least part of its 13-circle 3G territory before the end of 2010.

In July 2010, Vodafone Essar announced that it is targeting the launch of its 3G services in the country by the end of 2010, according to its CEO and managing director, Marten Pieters. He added that the company will launch 3G services in all nine telecoms circles of Delhi, Mumbai, Kolkata, Chennai and Tamil Nadu, Maharashtra and Goa, Gujarat, Haryana, Uttar Pradesh (East) and West Bengal for which it secured 3G licences. The firm is waiting for the allocation of 3G spectrum that would enable it to roll-out its services.

In the case of the deal between Tata Teleservices and Huawei Technologies, it also represents a step forward for the 3G sector after progress in installing the necessary infrastructure was delayed due to security concerns over allowing foreign vendors to establish networks on behalf of operators in the country.

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