Growth in the Indian Telecom Industry is Slowing Down!!!

According to data released by the Cellular Operators Association of India (COAI), Bharti airtel added 1.51 million mobile subscribers in July 2011, taking its total mobile user base to 170.7 million.

Similarly, Vodafone Essar added 1.49 million mobile subscribers to register a total user base of 143 million, while Idea Cellular added 1 million mobile subscribers to reach 96.1 million.

The data showed that GSM subscriber additions have reduced to 7.6 million new users in the period under consideration. This is the lowest number of new subscribers added by GSM players since June 2007. This is also the fifth consecutive month when the number of monthly subscriber additions have reduced.

COAI attributes this decline to various factors, including operators focusing on obtaining higher revenues, instead of subscriber additions and lack of competition among operators, especially with regard to tariffs.

According to Rajan Mathews, director general, COAI, “The industry is clearly slowing down. Rollouts into rural areas are getting more difficult and operators are looking at obtaining a better return on investments and are thus focusing on quality rather than quantity.”

Lack of competition among operators regarding tariffs is also a concern, and has resulted in a decline in the number of dual SIM card users.

-Edited From tele.net.in

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