Acording to the Cellular Operators Association of India (COAI) private GSM mobile operators have recorded an increase of 11.2 per cent in adjusted gross revenue (AGR) to Rs 44.6 billion in the third quarter of financial year 2005-06 from Rs 40.1 billion registered in the second quarter ended September 30, 2005.
On a year-on-year basis, the third quarter of 2005-06 witnessed a 39 per cent rise in AGR as compared to the same quarter in the previous year, when it recorded an AGR of Rs 32.07 billion.
However, in spite of the rise in AGR, the private GSM industry witnessed a fall in average revenue per user (ARPU). The average industry ARPU, calculated on the basis of AGR, fell from Rs 390 for the quarter ended June 2005 to Rs 375 for the quarter ended September 2005 and to Rs 370 for the December 31, 2005 quarter ?? a fall of 5 per cent since June 2005.
Thus, although revenues have risen consistently over the four quarters of calendar year 2005, there has been a continuous decline in ARPU.
A circle-wise analysis reveals that while average ARPUs have increased in the Delhi, Kolkata, Chennai, Maharashtra, Gujarat, Haryana, West Bengal and Jammu & Kashmir circles, everywhere else they have registered a drop in December 2005 over September. The highest increase in average ARPU was registered in the Maharashtra circle where the ARPU went up from Rs 344 in September to Rs 357 in December 2005, an increase of 3.8 per cent. The biggest drop was in the north-east where the ARPU fell from Rs 439 in September to Rs 382 in December 2005, a decline of almost 13 per cent.
A company-wise analysis shows that except for Aircel and Idea Cellular, every other service provider registered a drop in ARPU in December 2005 over September 2005. Idea’s ARPU increased from Rs 327.14 in September 2005 to Rs 342.78 in December 2005.
