The Indian Telecommunications

The Indian telecommunication industry has been growing exponentially and especially the mobile sector in particular has today emerged as the most vibrant & dynamic business ever…

If we have a glance at the numbers, which represent the mobile user growth in India & the rate at which the industry is growing, its just flamboyant and the change is very promising, and will reveal many interesting facts about the mobile revolution India is going through…..

Looking back into the last fiscal, in March’06 the mobile sub base was around 96million which ripened to 120million by Aug06 which shows that the user base is increasing @ 3 - 4 million a month.

Remember? Sometime mid April’06, was when India celebrated 100million mobile users. Though this growth was very enthusiastic it did not leave much excitement within the operators due to various factors out of which, the declining ARPU has been their major concern. Their top priority was to look for alternatives to accelerate the revenues.

A glance at the market share of Post paid & prepaid sub base on an industry average, looks little bumpy and I really wonder how healthy is the business with these numbers... The prepaid base grabs an whooping 80% share in that pie leaving just about 20% for the postpaid.

May be the industry has been digesting this huge variaion in the pie share, due to the fact that the acquisition cost of prepaid stands much lower than post paid although postpaid fetches a promising and higher ARPU largely to that of prepaid and moreover the prepaid loyalties are extremely low and hopeless… This now recoils the fact that it requires the operators to focus more to maintain and retain the sub base from churn which can only be achieved by superior differentiating tools like VAS and after sale support; after all voice has just become a commodity and will surely remain a raw material going forward….