Telecom revenue falling.

Declining revenue
On the face of it, the Indian telecom industry is booming. It not only the fastest growing industry in the country but also the second largest in the world (after China) with a subscriber base of 562 million at the end of December 2009. The main driver is wireless or mobile telephony whose subscriber base reached 525 million at the end of December 2009 quarter, 51 per cent higher than a year-ago period. Every month India adds around 12 to 15 million subscribers, highest in the world. All these superlatives, however, camouflage the real picture, that is, an industry heading for major trouble tottering under severe competition and self-inflicted price cuts.

Just look at some of the key indicators to judge the health. According to the latest industry status report prepared by the Telecom Regulatory Authority of India (TRAI), the average revenue per user (ARPU) for the quarter ending December 2009, for GSM (Global Standard for Mobile) service was only Rs 144 per month or 35 per cent lower than Rs 220 in the same quarter last year. In fact, ARPU has been declining every quarter since last year (See Chart). For the CDMA (Code Division Multiple Access) service, accounting for 20 per cent of the wireless market, the scene is much worse. Their ARPU per month was only Rs 82 in the December 2009 quarter against Rs 111 in the same quarter last year.
 
 To know more pl. the article ...Telecom revenue falling.
Telecom revenue failling.