India Wireless Telecom Market June 2011 – Idea set to overtake Reliance to become No.3 mobile operator

Source: TRAI
India mobile subscriber base touched 851.70 million in June 2011 …
·        Indian wireless telecom market ends June 2011 with subscriber base of 851.70 million with addition of 11.41 million, monthly growth rate of 1.36%
·        Overall mobile teledensity stands at 71.11% (Urban – 155.96%, Rural – 34.58%)
·        Urban to rural subscriber ratio is 66.00% to 34.00%
·        According to VLR data, India had 594.77 million active mobile subscribers. Hence, actual wireless teledensity in India is 49.66% by June 2011
·        Indian wireless telecom industry growth is gradually slowing down. In the quarter ending June 2011, India added 40.11 million mobile subscribers which is significantly lesser compared with quarters ending March 2011 (59.40 million), December 2010 (64.48 million) and September 2010(52.20 million)
·        More importantly, during first quarter of 2011, only 20.79 million new active mobile subscribers were added. This means 1 one every 2 new wireless subscribers was inactive
Top 5 mobile telecom players account for 82.8% of overall subscriber base ….
·        Bharti Airtel has maintained its leadership position with 25.3% market share in India
·        Idea has largest proportion of active mobile users at 92.48%
·        Top 5 players in Indian wireless telecom industry accounts for 82.8% market share in terms of active subscriber base
·        Airtel (18.58%) added highest amount of subscribers in June 2011 followed by Reliance (18.44%), Vodafone (18.34%) and Idea (11.86%)
·        Reliance is facing tough competition from Idea for 3rd place as gap between their market share has come down to just 0.1%. If trend continues, Idea would become No.3 mobile player in India in next couple of months

U.P. (East) continues at the top as Tamil Nadu beat Andhra Pradesh for 3rd position ….
·        U.P. (East) with 49.38 million active mobile subscribers is an undisputed leader followed by Maharashtra with 48.11 million active mobile users
·        Tamil Nadu with robust subscriber addition of 1.11 million during June 2011 overtook Andhra Pradesh to become 3rd largest wireless telecom market in India.
·        At the end of June 2011, Tamil Nadu had 45.83 million active mobile subscribers compared to Andhra Pradesh with 45.21 million
·        Bihar with 40.71 million active wireless telecom users remains at 5th spot. Notably, it has added 1.12 million new mobile users during June 2011, highest in the country.

Number of mobile connections in the world are expected to touch 7.4 billion by 2015 while data services revenue would touch $552 billion

Source: Gartner
Worldwide mobile connections are expected to touch 5.6 billion by 2011, growth of 11% over 2010
·    Driven by strong growth in emerging markets such as India and China, worldwide mobile connections are expected to increase  by 11% to reach 5.6 billion by 2011
·    It is expected that mobile connections would witness steady growth in coming years to reach 7.4 billion by 2015. This would translate into CAGR of 8.2% during 2010-2015

Mobile data services revenues are expected to reach $314.7 billion by 2011, an increase of 22.5% year on year
·    Factors such as increasing adoption of smartphones by mobile customers coupled with improved speed of data mobile networks led to rise mobile data usage worldwide
·    As a result, global mobile data services revenues is expected to witness strong growth of 22.5% during 2011 to reach $314.7 billion
·    Mobile data services revenues would grow at a CAGR of 16.5% during 2010-2015 to reach $552 billion by 2015
·    Factors such as overall increase in mobile connections, rising adoption of smartphones due to improved affordability, availability of high speed data networks at cheaper rates and expanding market of mobile content & applications are key growth drivers for mobile data services industry
·    Apart from mobile data tariff plans , quality of service and reach of service network; mobile data customers are increasingly focusing on issues such as clarity and the transparency in billing by communications service providers (CSPs)