Telecom Numbers - Vodafone extends lead over BSNL

Vodafone Essar has widened its lead over PSU telco Bharat Sanchar Nigam Ltd (BSNL) in June, in terms of global system for mobile communications (GSM) subscriber numbers.

Vodafone Essar (earlier Hutch Essar) is 2.33 million subscribers ahead of BSNL in June, while the gap was just 1.3 million between the two in the previous month, according to figures released by the Cellular Operators’ Association of India (COAI).

BSNL used to be the No 2 GSM player in India, in terms of subscriber numbers, till two months ago. In May, Vodafone Essar toppled the hierarchy by occupying the No 2 slot, and now it appears to be strengthening its position. UK-based Vodafone, the world’s largest mobile operator, acquired a controlling stake in Hutch Essar earlier this year.

The gap in subscriber numbers between leader Bharti and Vodafone Essar is also increasing. While Bharti had 11.5 million more GSM subscribers than Vodafone Essar in May, the difference now is 11.95 million.

Bharti’s marketshare has increased to 31.4% in June from 31.2% in May. Other operators which have shown an increase in marketshare include Vodafone Essar with 22.61% (22.36% in May), Idea with 11.86% (11.69% in May), Aircel with 4.98% (4.91% in May) and Spice with 2.33% (2.30% in May).

Many GSM operators, such as BSNL, Reliance Telecom, Mahanagar Telephone Nigam Ltd (MTNL) and BPL Mumbai, have recorded a dip in marketshare.

BSNL’s share has dropped from 21.43% to 20.90%, Reliance Telecom’s from 3.3% to 3.2%, MTNL’s from 1.95% to 1.92%, and BPL’s from 0.83% to 0.80%.

The slip in BSNL’s GSM growth is being attributed to the delay in executing its mega tender. Although Ericsson emerged as the lowest bidder for the 45-million line tender of BSNL, communications minister A Raja wants a re-look at the whole exercise.

The minister has said that $107 per line cost quoted by Ericsson is far too steep.

There are 135.9 million GSM subscribers in the country, as on June 30, 2007, against 130.6 million in May. The total addition in GSM numbers was 5.4 million in June.

Interestingly, COAI director-general TV Ramachandran said recently that the monthly growth in subscriber numbers could touch 10 million by December.

According to him, the growth is being driven, primarily by aggressive network expansions by the operators coupled with decreasing tariffs and increasing affordability. The government’s target is to have 250 million phone users by the end of 2007, and 500 million by 2010.