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India's mobile subscription to cross 265 mn by 2010

A report says the booming wireless phone subscriber base in India will reach 265.2 million by 2010.

india Updated: Feb 07, 2007 04:05 IST

The booming wireless phone subscriber base in India will reach 265.2 million by 2010, a report says.

According to the recent research, "Achieving Profitability in the Indian Wireless Market", by the high-tech market research firm In-Stat, the booming Indian wireless market, the subscriber base for which has crossed 100 million mark, has plenty of room for growth.

This is the best time for the providers as they will continue to rake in profits.

However, Average Revenue Per User (ARPU) levels have declined significantly, and the downward trend is expected to continue, the high-tech market research firm says.

"The primary growth drivers for the subscriber base include the fact that India is an under-penetrated market, low tariff structure, increasing ability of the population to afford mobile services, and rapid network expansion by operators," says Mayank Jain, In-Stat analyst.

Recent research by In-Stat found the following:

- ARPU in India is one of the lowest in the world and is expected to decline further to $5.60 by 2010.

- The prime reason for the decline in ARPU is the downward trend in tariff structure for subscribers due to intense competition.

- The leading operators are Bharti Airtel, BSNL, Reliance, Hutchison, and Idea Cellular. Combined, these players accounted for about 84 per cent of the subscriber base in 2005.

The research covers the market for wireless services in India. It includes analysis of the profitability of the players in this market, including the cost structure for mobile operators. It contains forecasts for subscribers, revenue and ARPU through 2010.

First Published: Feb 07, 2007 04:05 IST