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Telecom sector registers growth of 15% in 2010-11

25 Jul 2011 Evaluate

During the last financial year telecom service sector registered a growth of almost 15%, as per the industry survey, the telecom service revenue for 2011-10 increased to Rs 166,168 crore from Rs 144,600 crore in the previous financial year. The telecom service revenue includes income from cellular, fixed line, broadband and VSAT.

According to the survey of leading telecom industry journal Voice & Data, the cellular or mobile services market, the largest among all the communication services offered in the country, saw revenues rise 16.6% to cross the Rs 100,000 crore revenue milestones.

At the end of the last financial year, the revenue from this segment increased to Rs 102,230 crore from Rs 87,680 crore in previous financial year. However, fixed line showed decline in revenue growth as well as number of connections, the total profit of the segment fell by 15% to Rs 11,602 crore. In the last fiscal year, the number of active subscribers crossed 501 million, whereas the number of SIM card crossed to 812 million.

In the last financial year the broadband services segment registered increase in revenue by 22.4% to Rs 6,846 crore, however, telecom industry as a whole failed to meet the aim of 20 million broadband connections by 2010, it got only 11.87 million subscribers in the last fiscal year.

'Even though the telecom regulator reported India's mobile subscription base at 812 million, that number includes a large base of inactive subscriptions. This includes those who are in the grace period after their SIM validity has lapsed, with them having not charged their SIM cards for months or even years,' survey said.

Ibrahim Ahmad, group editor of Voice & Data said that the recent tariff hike will help the industry invest in telecom infrastructure that delivers better customer experience through improved quality of service. The leading mobile operators such as Bharti, Reliance and Vodafone now each have over 100 million subscribers.  

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