While the mobile segment witnessed a subscriber addition of 1.95 million in December 2004, the average revenue per user (ARPU) for the October-December 2004 quarter leaves much to be desired. For the first time in over four years, the all-India ARPU for GSM-based telecom operators has fallen below the Rs 400 mark to Rs 396.41, down 1.42 per cent over the previous quarter, according to data compiled by the Cellular Operators’ Association of India.
The ARPU, which stood at Rs 523 in June 2003, fell to Rs 432 in March 2004. It slipped further to Rs 402 in the April-June 2004 quarter, a 6.8 per cent drop over January-March 2004. This figure held during July-September 2004 to finish at Rs 396.41 during October-December 2004.
Overall, barring Idea Cellular and BPL, nearly every cellular operator ?? Bharti, Hutchison, Aircel and Spice ?? reported a fall in ARPU. Interestingly, Hutchison continued to command the highest ARPU in the cellular industry, despite a 0.8 per cent fall to Rs 484.1 from Rs 488 in the previous quarter. Bharti, on the other hand, declared lower ARPUs during the quarter owing to a decline in individual ARPUs in Kolkata by 18.7 per cent, Uttar Pradesh (East) by 26 per cent, Maharashtra by 6.8 per cent and Himachal Pradesh by 14.8 per cent. Idea Celluar too, though registering an increase in ARPU, showed a dip of 2.6 per cent and 10.2 per cent in state-level ARPUs for Andhra Pradesh and Kerala respectively.
However, this slide in ARPUs has not translated into a fall in national cellular revenue growth. Quarterly revenues registered a hike to Rs 32.07 billion, a near 10 per cent increase from Rs 29.31 billion registered in the previous quarter. Bharti, Hutchison and Idea were still at the top of the cellular revenue chart, though Idea Cellular performed better compared to rivals Bharti, Hutchison and BPL, in terms of percentage quarterly revenue growth and rise in ARPU levels, with revenues pegged at Rs 5.11 billion.
