Indian Telecom Sector Loosing Urban Subscribers


According to TRAI April Subscriber data Indian Wireless Sector Losing High ARPU urban subscriber base whereas adding low ARPU rural subscriber. The trend is quite alarming given the recent tariff rise in urban area as well as change in roaming policies. In April, Urban subscriber base decreased by 4.12 Million whereas rural subscriber base increased by 3.34 Million. The Teledensity of Urban area decreased by 6% and stand at 139% whereas rural area teledensity increased by more than a percentage point and stand at 40.5 %. The industry buzz around competitiveness among incumbent operators and their market share gain should not be focussed much as revenue matter more than subscriber numbers in current Indian wireless scenario. The reduction is urban subscriber as well as teledensity may carry indirect impact on M-VAS and data revenue whereas offer voice revenue opportunity from rural sector. I view reduction as a result of stringent authentication process, roaming tariff coming to reasonable level.

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