GSM Subscriber Update

Bharti: The market leader Bharti registered a growth of 3% MoM (58.5% YoY) with a net addition of 1.75 mn (as against 1.70 mn in March 2007), gaining subscribers from the relatively less competitive 'C' circles of Assam (11.6%), North East (11.7%) and West Bengal (10.0%).

Reliance: Reliance, the other national player, registered no change in net additions at 4.37 mn. We believe Reliance may not have reported its numbers yet and that COAI would therefore have been forced to carry forward the same from March 2007.

Idea: Idea registered a strong percentage increase of 49.1% (MoM) to 0.55 mn particularly from Himachal Pradesh (26.8% MoM), Uttar Pradesh (E) (12.6%) and Rajasthan (11.6%). Given Idea's plans of further enhancing its presence across India, the positive trend in incremental subscriber base will play a critical role in determining its success.

BPL: BPL's net subscriber addition has been a poor 6,232 in absolute terms. It is in the sell-out phase, with only one remaining circle - Mumbai. Hence, it is most unlikely that BPL will invest more into the business, leading to continued poor subscriber additions.