& cplSiteName &

India's Mobile ARPU on the Slide

Light Reading
News Analysis
Light Reading
4/9/2010
50%
50%

It's already well known and documented, but the latest quarterly Indian Telecom Services Performance Indicators report from the Telecom Regulatory Authority of India (TRAI) , which covers the final three months of 2009, shows how intensifying competition is hitting the ARPU (average revenue per user) levels at India's mobile operators.

According to the report's statistics, the monthly ARPU levels for GSM service users in India decreased by 12.4 percent to 144 Indian Rupees (US$3.26), compared with the aggregate ARPU level of INR164 ($3.71) in the three months to the end of September. During the first three months of 2009, the GSM ARPU level was INR205 ($4.64).

The CDMA service ARPU level also dipped during the fourth quarter, by more than 7 percent to INR82 ($1.86).

ARPU levels have been in steady decline for some time as more and more operators entered the market and subscriber numbers grew (there were more than 525 million mobile lines activated at the end of 2009), but this sharp drop can be attributed to the tariff war started by Tata Teleservices Ltd. in June 2009.

And ARPU levels aren't set to stabilize any time soon, according to a recent report from Pyramid Research . It estimates that ARPU levels will continue to decrease during the next four years, though the rate of decline will tail off as each year passes.

The news comes just as the country's operators wait to see which of them will emerge from the 3G spectrum auction with new airwaves, and attempt to find the right data services strategies to help boost their ARPU levels. (See India 3G: And They're Off! and MTS India Puts Its Faith in Data.)

But it's not only ARPU levels that are dropping: There has also been a decline in the monthly average minutes of usage (MOU) levels too. For GSM it declined by 2.8 percent to 411 minutes per month in the fourth quarter of 2009 from 423 in the previous quarter.

The GSM operators had been expecting the average MOU to rise as tariffs fell, but as this isn't happening it's likely that there has been in increase in the use of multiple pre-paid SIM cards, which means a growth in the number of people using more than one SIM to make and receive calls. The practice is common in India, with some industry sources estimating that while there are more than 525 million activated lines, there are possibly only 350 million to 400 million unique mobile service users.

Among CDMA users, MOU levels grew during the final quarter of 2009, by 3.2 percent to 318 from 308 in the previous three-month period.

Another metric set to rise is the mobile penetration level. With 525 million lines, mobile teledensity stood at 45 percent at the end of 2009, and this has already increased to 47.9 percent at the end of February 2010. The team at Pyramid Research expects the mobile penetration rate to reach nearly 80 percent by the end of 2014.

— Gagandeep Kaur, India Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 4:39:46 PM
re: India's Mobile ARPU on the Slide


Will the availability of 3G and BWA spectrum help the operators develop more profitable VAS?

Gagandeep Kaur
50%
50%
Gagandeep Kaur,
User Rank: Blogger
12/5/2012 | 4:39:40 PM
re: India's Mobile ARPU on the Slide
The VAS companies are certainly looking forward to 3G as a revenue generator. But more than VAS, the operators are looking at data services to boost the ARPUs...
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (6) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
NFV, SDN, Big Data – It's All About Automation
Craig Matsumoto, Editor-in-Chief, Light Reading, 7/21/2017
AT&T's Tech President Preps Workforce for the Future
Kelsey Kusterer Ziser, Editor, 7/26/2017
What's a Little Throttling Between Friends?
Mari Silbey, Senior Editor, Cable/Video, 7/24/2017
The Hidden (Human) Cost of Automation
Steve Saunders, CEO and founder, Light Reading, 7/26/2017
BBC Head: We Must Reinvent Broadcasting for a New Generation
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.