The Cellular Operators Association of India (COAI), the GSM operators lobby, reported net additions of 4.3mn to the GSM subscriber base in October 2013 vs 4.4mn in the previous month. Airtel, Vodafone and Idea added 1.5mn, 1.2mn and 1.1mn subscribers respectively, followed by Aircel (0.5mn additions) and Videocon (0.2mn). Uninor had a flat subscriber growth (MoM).
The incumbents again represented the bulk of the additions, in line with their recent performance. The three operators combined represented 88% of the additions in the previous six months amongst the operators represented by COAI. Bulk of Bharti’s additions came from Bihar, Andhra Pradesh and West Bengal (0.6mn), and the rest were largely spread across India. Idea continued its strong performance in the core markets of Maharashtra (0.2mn net additions) and Madhya Pradesh (0.1mn).
The incumbents (Airtel, Idea and Vodafone) continue to outperform their peers in terms of subscriber growth. Given that these companies have consistently maintained a superior VLR (Visitor Location Register) ratio than the smaller operators, this growth is also superior in quality as compared to its peers. All signs point towards continued consolidation in the industry, which is likely to result in increased pricing power for Airtel and Idea Cellular.