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Telecom sector
Net subscriber addition decline
Cellular Operators Association of India (COAI) reported GSM subscriber data for
May 2011, which continued its declining trend in this month as well. It was the
lowest since last one and half year and weak across all operators (except Bharti
and Vodafone). The net subscriber addition number stood at 9.5mn, down 14.2%
mom, taking the total GSM subscriber base to 590.2mn.
Broad-based weakness
In May 2011, net addition run rate mom for all operators dropped off steeply
(Refer Exhibit: 7). Among the incumbents, BSNL reported the highest drop off in
net additions to merely 0.5mn, down 31.6% mom, which led to a 20bp mom
decline in its subscriber market share to 14.8%. Idea, which was adding more
than 2.5mn subscribers since last six months, posted steep 26.5% mom decline in
its net subscriber addition to merely 1.8mn in May 2011. On the other hand,
Bharti and Vodafone maintained their net subscriber addition number by adding
2.5mn and 2.4mn subscribers, an increase of 1.7% and 1.6% mom, respectively.
Net subscriber addition of Aircel was flat at 1.1mn, up 0.4% mom. Subscriber
market share of Bharti and Vodafone was maintained mom at 28.3% and 23.6%,
respectively; however, Aircel’s market share inched up by 10bp to 9.7%.
All the new operators reported sharp decline in subscriber net addition numbers
for May 2011. Uninor, which emerged as a dark horse in April 2011, posted
21.2% mom decline in its net subscriber addition by adding only 1.1mn
subscribers, which led to 110bp mom decline in its subscriber markets share to
12.0%. Operators like DB Etisalat, Loop Mobile and S Tel reported 60.3%, 29.4%
and 9.1% mom decline in their net subscriber addition numbers to 0.1mn,
0.01mn and 0.2mn, respectively. Videocon posted net reduction in its subscriber
base by 0.2mn.
Circle-wise highlights
In May 2011, the net addition run rate of Metro circle rebounded significantly to
1.0mn vs. net reduction of 0.4mn in April 2011. In the Metro circle, Vodafone
had the highest net additions at 0.24mn, followed by Bharti and Idea reporting
0.19mn and 0.16mn, respectively. C circle also reported decent 2.1mn net
subscriber addition in May 2011. However, A and B circle, which were adding
above 3.5mn and 4.4mn subscribers since last one year, reported only 2.4mn
and 4.0mn subscriber net addition, respectively, in May 2011. This led to a
considerable decline in their net subscriber addition market share to 25.4% and
41.9% from 39.7% and 50.5% in April 2011, respectively.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Telecom sector
Net subscriber addition decline
Cellular Operators Association of India (COAI) reported GSM subscriber data for
May 2011, which continued its declining trend in this month as well. It was the
lowest since last one and half year and weak across all operators (except Bharti
and Vodafone). The net subscriber addition number stood at 9.5mn, down 14.2%
mom, taking the total GSM subscriber base to 590.2mn.
Broad-based weakness
In May 2011, net addition run rate mom for all operators dropped off steeply
(Refer Exhibit: 7). Among the incumbents, BSNL reported the highest drop off in
net additions to merely 0.5mn, down 31.6% mom, which led to a 20bp mom
decline in its subscriber market share to 14.8%. Idea, which was adding more
than 2.5mn subscribers since last six months, posted steep 26.5% mom decline in
its net subscriber addition to merely 1.8mn in May 2011. On the other hand,
Bharti and Vodafone maintained their net subscriber addition number by adding
2.5mn and 2.4mn subscribers, an increase of 1.7% and 1.6% mom, respectively.
Net subscriber addition of Aircel was flat at 1.1mn, up 0.4% mom. Subscriber
market share of Bharti and Vodafone was maintained mom at 28.3% and 23.6%,
respectively; however, Aircel’s market share inched up by 10bp to 9.7%.
All the new operators reported sharp decline in subscriber net addition numbers
for May 2011. Uninor, which emerged as a dark horse in April 2011, posted
21.2% mom decline in its net subscriber addition by adding only 1.1mn
subscribers, which led to 110bp mom decline in its subscriber markets share to
12.0%. Operators like DB Etisalat, Loop Mobile and S Tel reported 60.3%, 29.4%
and 9.1% mom decline in their net subscriber addition numbers to 0.1mn,
0.01mn and 0.2mn, respectively. Videocon posted net reduction in its subscriber
base by 0.2mn.
Circle-wise highlights
In May 2011, the net addition run rate of Metro circle rebounded significantly to
1.0mn vs. net reduction of 0.4mn in April 2011. In the Metro circle, Vodafone
had the highest net additions at 0.24mn, followed by Bharti and Idea reporting
0.19mn and 0.16mn, respectively. C circle also reported decent 2.1mn net
subscriber addition in May 2011. However, A and B circle, which were adding
above 3.5mn and 4.4mn subscribers since last one year, reported only 2.4mn
and 4.0mn subscriber net addition, respectively, in May 2011. This led to a
considerable decline in their net subscriber addition market share to 25.4% and
41.9% from 39.7% and 50.5% in April 2011, respectively.
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