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Cellular growth seems to continue in India even as the global economy takes a beating. The total wireless subscriber (GSM, CDMA, and WLL) base stood at 261.1 mn at the end of March, 2008. A total of 10.2 mn wireless subscribers have been added in March, 2008, as against 8.5 mn in February, 2008.

During FY 2007-08, 95.98 mn subscribers were added. A large chunk of the overall teledensity of more than 25% comes from wireless teledensity, which stands at over 22%. Expansions in rural areas, bringing down entry barriers, attractive schemes, and thrust on customer retention are factors driving operators to ramp up subscriber-base and revenues.

Bharti Airtel, which is the top player in terms of revenue and subscriber-base, clocked Rs 19,053 crore in FY 2007-08, registering 41.9% growth.

Wireless Market Standing
The number of wireless subscribers of TTML stood at 46.8 lakh in FY 2007-08. During the period, wireless ARPU was Rs 268. Besides focus on subscribers, its thrust on distribution channels such as exclusive Tata Indicom outlets and multi-branded outlets enabled growth. TTML increased the number of towers over the last three years, growing from 410 towers in FY 2006-07 to 565 towers in FY 2007-08. TTML's wireless coverage is available in 287 census towns, while its services are available to over 602 lakh people.

TTML reduced focus on free on-net call as a subscriber acquisition tool and started monitoring the rate per minute. Last year, the company withdrew one of its best selling products, 'Go Super' starter pack, as part of its strategy. There is a clear indication that it has increased focus on value added services and non-voice revenue.

Idea Cellular operates in 11 circles out of 22 in India. In the newer service areas like Himachal Pradesh, UP (E), and Rajasthan, launched last fiscal, the company has achieved a combined subscriber market share of approximately 6% as at the end of March, 2008.

Bharti Airtel showed ample activities in rural areas. In mobile services, Bharti Airtel's population coverage increased from 59% to 71%. The company established presence in over 5,000 census towns, and added more than 1.35 lakh new census towns and villages taking the total to over 3,42,000. In line with Bharti Airtel's expanding network reach, with approximately 70,000 sites, its mobile distribution network comprises 8,60,000 outlets.

FY 2007-08 saw significant developments toward the acceptance of dual technologies. Reliance Communications is looking at offering both CDMA and GSM services on a nationwide basis. Customers will be free to choose their products in the market. Also, it is already operating in six circles in India, where both GSM and CDMA are being offered. The strategy will not change for the Reliance Mobile brand, and the GSM and CDMA services offering.

The year also marked the entry of two prominent international players, Vodafone and Virgin Mobile, in India. Vodafone entered India threatening market shares of domestic players such as Reliance, Bharti, BSNL, Idea, and TTSL.

The Virgin Mobile brand is said to be India's first national youth-focused mobile service. Tata Teleservices offered Virgin Mobile services to consumers through a brand franchise. Though, Virgin Mobile service is available nationwide, it focuses on subscriber acquisition in the top 50 cities, to be extended to over 1,000 by the year-end.

Total cellular subscribers of MTNL increased to 3.53 mn as on March 31, 2008. Tariff reduction did not assist the company in ramping up customer-base as expected, even though it offers some of the most affordable tariffs to its customers. In order to be able to provide national calls at a more competitive rate, MTNL recently sought access to BSNL's network in order to take on private operators. MTNL wants calls between its network and BSNL to be treated as on-net calls.

For MTNL, non-availability of a pan-India network is hampering its growth and affecting its market share. Considering the past, MTNL may take more time to restore confidence in customers in Mumbai and Delhi.

There was renewed interest among foreign players to enter the Indian market. Russian telecom operator Sistema has acquired 10% equity stake in Shyam Telelink, which operates in Rajasthan, for $11.4 mn. Shyam Telelink has applied for a national USAL license for operating in twenty-one circles. Sistema intends to increase its stake to 51% after receiving approval from the FIPB. The overall value of the deal may reach $58.1 mn in such a scenario. The Sistema group will also invest $4-7 bn to roll out a pan-Indian network.

The year was also marked by new services offerings. HFCL Infotel launched its mobile service under the name Ping, for Punjab and Chandigarh circles. With an investment of Rs 100 crore, the service is available in 270 towns and 2,050 villages in Punjab and Chandigarh, through a statewide distribution network of 8,000 retail outlets. HFCL Infotel plans to invest about Rs 20 crore to extend the service to 5,000 more villages in Punjab.