Teledensity decreases to 91.56 per cent in September: report

Over the last one year, smaller telcos lost 380 lakh subscribers on an aggregate basis, which has challenged their business continuity.

By: Express News Service | Updated: January 3, 2018 12:53:20 am

Teledensity, trai, trai report, telephone subscribers, telephone subscribers india, tele density india, wireless subscribers, wireline subscribers, telecom news 168.2% urban teledensity in September 2017, compared with 174% in August 2017, whereas rural teledensity was flat at 56.3% representing untapped growth opportunity.

The overall teledensity in India marginally decreased to 91.56% in September 2017, compared with 93.71% in August 2017 due to a decline in the urban subscriber base, according to a report by India Ratings.

* 168.2% urban teledensity in September 2017, compared with 174% in August 2017, whereas rural teledensity was flat at 56.3% representing untapped growth opportunity.

SUBSCRIBERS GROWTH FALLS

Subscriber growth continued to remain negative in September 2017 for the third consecutive month, due to the industry churn, high urban tele-density and reversal of dual SIM-led inflated growth in the past.

Over the last one year, smaller telcos lost 380 lakh subscribers on an aggregate basis, which has challenged their business continuity.

INDUSTRY STRUCTURE

From large number of operators, the industry structure is being redrawn to oligopolistic as sponsors of smaller, unprofitable telcos exited as they were not being able to sustain losses.

Smaller telcos with high debt, small revenues and profitability pressures had limited scope to incur massive capex on network and further spectrum acquisition. Most of the smaller telcos have sold business at rock-bottom valuations and even need to restructure their debt.

INDUSTRY REVENUES

Gross industry revenues increased 6.6% q-o-q to Rs 46,800 crore in the quarter ended September 2017. Adjusted gross revenues grew 8.8% q-o-q to Rs 30,700 crore in the quarter ended September 2017.

Industry’s average revenue per user declined sequentially by 11% q-o-q and 35% y-o-y in September 2017 due to a high competitive intensity.

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