Indian telecoms industry is one of the biggest market in world, its users base has grown exponentially but it is also true that its profit margin and revenues are decreasing sharply day by day, reason is simple,so many new telecoms companies are coming in market,stiff competition is growing.Many telecoms analyst are predicting that market in telecoms industry will see consolidation soon, as not all players can sustain at the lower profit margin.Only solution is, big player will acquire small player soon and ultimately 3,4 major telecoms companies will work .As we have already seen Airtel which is one of the biggest telecoms companies in India with maximum number of consumer base , has started to search other markets world wide ,in that series they have invested in Bangladesh and now in Africa countries with Zain telcos deal.
TRAI Revenue report on telecom industry:
The Indian telecom industry’s average revenue per user (ARPU) has been falling steadily for both GSM and CDMA services, as per the Telecom Regulatory Authority of India (TRAI) telecom performance report for the period October to December 2009.
TRAI figures reveal that GSM ARPU declined by Rs 20, from Rs 164 during the quarter July to September 2009 to Rs 144 in the quarter October to December in the same year. The report shows a constant decline in the ARPU every quarter in the past year. While at the end of December 2008 ARPU from GSM subscribers stood at Rs 220, it dropped by Rs 15 in the next quarter ended March 2009. The trend continued for the rest of the year with a decline of Rs 20 in the next quarter ended June 2009 and a further decline of Rs 21 in the quarter ended September 2009, which brought down the ARPU to Rs 164.
Via-telecomyatra
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