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Robust growth in cell subscriber base

By Our Special Correspondent

NEW DELHI NOV. 7. The robust growth in the subscriber base for wireless phones continued in October. As many as 16.9 lakh new additions were recorded during the month, according to data collated by the Telecom Regulatory Authority of India (TRAI). Of them, nearly 10.5 lakhs were of the cellular variety and the remaining 6.4 lakhs were limited mobility (WLL-M) phones.

The figures compared well with the numbers recorded in the previous month as well as with the same period last year. Companies reported 16.6 lakh new connections in September this year. New additions were only 5.3 lakhs in October last year.

Thus, growth in the wireless sector has remained explosive since May this year. The financial year had started on a bright note with 6.4 lakh new connections in April. Catching analysts and industry unawares, 22.6 lakh new phones were added in May. Even as the industry was wondering whether this growth was a one-time phenomenon due to lower growth of 14.2 lakhs recorded in the next month, the figures for July showed a return back to the high growth path. As many as 22.8 lakh new subscribers were added all over the country even as cellular and WLL(M) companies fought a turf war. A healthy growth was recorded in August and September too.

In contrast, fixed phones have grown sluggishly leading to speculation that mobile phones might exceed fixed lines in early 2004-05. At the end of October, the number of fixed lines stands at 4.2 crores and mobile lines at 2.5 crores. Clearly, the mobile segment has a lot of catching up to do but this sector is receiving the necessary impetus as all phone companies — state-run and private — are now aggressively marketing mobile phones of cellular and WLL (M) varieties. However, even if the number of cellular phones becomes more than fixed lines, a major difference in the usage pattern will remain. Cell phones are generally used by one person while fixed phones are utilised by the entire household, office, neighbourhood or village.

Whether cell phones will exceed fixed phones in simple numeric terms by the early months of the next fiscal, as estimated by the TRAI, is open to question. It is; however, clear that a tele-density of seven (seven phones per 100 Indians) will be achieved earlier than anticipated. Planners had said that the tele-density of seven would be reached in March 2005. If the current rate of growth continues the targeted tele-density should be achieved by the end of this calendar year.

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