Financial Daily from THE HINDU group of publications
Tuesday, Aug 03, 2004
Financial Daily from THE HINDU group of publications Tuesday, Aug 03, 2004 |
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Info-Tech
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Telecommunications Marketing - Marketing Research Revenue per mobile user down 64 pc in 5 yrs Our Bureau
New Delhi , Aug 2 CELLULAR operators' earnings per user have plummeted by 64 per cent over the last five years from Rs 1,319 per month in 2000 to Rs 469 in 2004, despite a 53-per cent increase in minutes of usage, from 197 minutes to 302 minutes during the period. According to a report by the Telecom Regulatory Authority of India (TRAI), the increase in usage has not reflected in the revenues because the usage has been more on the incoming calls side, which are free to the subscriber. But, at the same time, tariff for outgoing calls has dropped drastically over the last five years resulting in a sharp fall in revenue per user. Revenue per minute cellular services has declined from Rs 6.70 to Rs 1.55 in the five-year period. However, the good news is that the subscriber base of mobile operators grew 159.15 per cent year-on-year to 33.69 million as on March 31 this year, 75 per cent of whom opted for pre-paid services, the report said. For Internet Service Providers (ISPs), the average minutes of usage has been reported to be around 400 per month and average revenue Rs 310 per month. At the end of March 2004, BSNL was at the top position with a subscriber base of 11.28 lakh Internet users. MTNL followed with a subscriber base of 7.69 lakh. Sify had 6.58 lakh users, while VSNL had 6.01 lakh and Dishnet DSL 2.65 lakh. The share of public sector ISPs has shown an increase of 91.62 per cent over last year, from 9.91 lakh on March 2003 to 18.98 lakh as on March 2004. On the quality of service , TRAI said that while fixed-line operators improved on most parameters, metering and billing was an area of concern; the performance had deteriorated as compared to last year's . The number of village public telephones has gone up from 3.7 lakh in 2000 to 5.2 lakh on 2004. Only some 85,000 villages remain to be covered.
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