Is India’s mobile user base number right?

Posted on | May 28, 2006 |

Rediff article questions whether the current declared mobile userbase of 90 million is accurate.

It cites a Yankee Group report which states that Indian operators might have to eliminate 10-20% of their subscriber numbers over the next two to three years to wean away a growing base of technically non-existent users.

The report brings about the imbalance based on relationship between handset sales and increase in subscriber numbers.

In the fourth quarter of 2005, the report estimates that around 10 million mobile devices were sold in India. This is much below the 12 million net addition of subscribers that were reported by operators.

It cites the cases of countries like Portugal and Taiwan where high pre-paid ratios and multiple SIM cards created a non-existent customer base.

Those who favour the report say that various factors could increase the gap - the free incoming-for-life scheme, the easy TRAI norms on definition when a subscriber should be moved off, and the large grace period given to pre-paid customers to recharge their mobile numbers.

However, COAI rubbishes the report. It says that 32 million handsets were sold in India between January-December 2005. The number of subscribers was more or less the same. Between April 2005 and March 2006, the number of handsets sold was around 37 million again matching additions to the subscriber base.

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