Financial Daily from THE HINDU group of publications
Wednesday, Dec 29, 2004
Financial Daily from THE HINDU group of publications Wednesday, Dec 29, 2004 |
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Info-Tech
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Telecommunications `Huge investments by mobile players likely' Our Bureau
Mumbai , Dec. 28 MOBILE service providers are expected to make investments to the tune of Rs 65,000 crore to Rs 70,000 crore over the next five years as compared to Rs 35,000 crore in the last five years, according to a forecast by CRIS INFAC. Over the next five years, the mobile subscriber base will increase from 33.3 million in 2003-2004 to 155 million by 2008-2009 increasing at a compounded annual growth rate of 36 per cent, said Mr Rajnish Rastogi, Head, Research CRIS INFAC, at a news conference here on Tuesday. And, in spite of a steady decline in Average Revenue Per User (ARPU) figures, the profitability of mobile service providers is expected to improve due to economies of scale and the expected decline in regulatory costs. The mobile will constitute 75 per cent of the telecom subscriber base. And mobile services, which accounted for almost 95 per cent of the additions to the telecom subscriber base in 2003-2004, will account for 90 per cent of the additions over the next five years as well. The telecom subscriber base is forecast to touch 212 million by March 2009. Teledensity would increase to 18 per cent by that time. The fixed subscriber base has been forecast to increase from 42.6 million to 56 million.
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