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Four years after 3G services were launched in the country, there are just about 93 million 3G subscribers. This is just 9 per cent of the total mobile user base. The 3G penetration in the country significantly varies across the circles, with 21 per cent in Mumbai and a mere 4 per cent in Uttar Pradesh (East).
About 300 million of the 981 million mobile subscribers in India use mobile data, but only 93 million of these have 3G connections. The top five circles by 3G penetration are Mumbai, Delhi, Kerala, Karnataka and Tamil Nadu with average revenues per user (ARPUs) of ₹225, according to a report by CLSA.
The ARPUs are about 40 per cent higher than the industry average of ₹161, it said, adding that 3G penetration is already over 15 per cent and these markets form over 40 per cent of India’s 3G subscribers.
In the remaining 17 circles, 3G penetration is half of data-centric markets at 7.5 per cent, although 2G penetration is similar at 21 per cent. This indicates that while consumer acceptance of mobile data is high, adoption of 3G services has been faster in markets with higher ARPU.
But the industry begs to differ. “I don’t think the penetration is low as 3G is in the process of evolving. It’s picking up, it’s growing. The spectrum auctions happened only in 2010, but networks being set up by companies in 2012-13, so we had 3G for just 2-2.5 years,” said Prashant Singhal, telecom leader at Ernst & Young, said.
Bharti, Vodafone LeadBharti Airtel and Vodafone India dominate the top five data-centric circles, which contribute 35 per cent of the industry’s revenues. These two GSM operators lead these markets with a 58 per cent revenue market share (RMS), which is higher than their overall market share of about 55 per cent and 32-46 per cent higher ARPUs.
As high-ARPU subscribers are likely early adopters of 4G, Bharti Airtel and Vodafone are at risk from Reliance Jio’s launch of 4G services.
However, in these markets, Bharti Airtel not only has spectrum comparable with Reliance Jio, but it has also ramped up 4G services.
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