Airtel, Idea, Vodafone Lead Mobile Subscriber Addition in Oct

Mobile Subscribers in IndiaThe 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 (more…)

Churn Declines Quality of Subscriber Base Improving

The churn level in the Indian Wireless Industry has started to decline sharply, in line with our expectations, driven by – Stricter subscriber verification norms set by the regulator in November 2012.

Hike in the prices of SIM cards by distributors (as indicated by our checks) to cover up for the declining volumes, thus discouraging rotational churn. Clean-up of the subscriber base by operators in the past few months. A lower churn should help operators reduce their SG&A spends, thereby improving margins.