Telecom Regulatory Authority of India

The Indian Telecom Services Performance Indicators July - September 2009

New Delhi, India 7th January 2010

Jawahar Lal Nehru Marg, New Delhi-110002 Tel: +91-11- 23230752, Fax: +91-11- 23236650 Website: www.trai.gov.in

Mahanagar Doorsanchar Bhawan,

Table of Contents
Snapshot ............................................................................................................................................. i Introduction...................................................................................................................................... iii Executive Summary & Trends at a Glance............................................................................ iv Chapter 1: Subscription Data ......................................................................................................1 Section A: Access Service – An Overview ..................................................................2 Section B: Wireless Service............................................................................................7 Section C: Wireline Service ..........................................................................................17 Section D: Internet Service ..........................................................................................23 Section E: Other Value Added Services – PMRTS & VSAT................................29 Chapter 2: Revenue and Usage..................................................................................................32 Section A: GSM – Full Mobility Service....................................................................33 Section B: CDMA – Full Mobility Service ................................................................38 Section C: Internet Services ........................................................................................42 Chapter 3: Financial Data of Telecom Service Sector ........................................................43 Chapter 4: Quality of Service (QoS)..........................................................................................47 Section A: Quality of Service Performance of Wireless Service Providers ....48 Section B: Quality of Service Performance of Wireline Service Providers.....54 Section C: Quality of Service Performance of Dial-up/ Broadband Service58 Chapter 5: Performance of Cable TV, DTH and Radio Broadcasting Services...........62 Annexures .........................................................................................................................................68 Annexure 1: Wireless Subscriber Base............................................................................69 Annexure 2: Wireline Subscriber Base............................................................................71 Annexure 3: List of Internet Service Providers Providing Internet Telephony Services ...............................................................................................................................72 Annexure 4: Subscriber Base for Internet Service Providers ...................................73 Annexure 5: Service Area wise PMRTS subscriber Base ...........................................80 Annexure 6: Performance of QoS Parameters for Cellular Mobile Services ........82 Annexure 7: Percentage of Wireless service Providers not meeting the benchmarks ..............................................................................................................................89 Annexure 8: Performance of QoS Parameters for Basic (Wire-line) Services ......90 Annexure 9: Quality of Service Performance of Broadband Service Providers...94 Annexure 10: Broadcaster wise list of pay channels along with their reported a-la-carte rates.......................................................................................................99 Annexure 11: List of operationalised private FM Radio Stations in India........111 Annexure 12: List of applicants who have been granted DTH License...............119 Annexure 13: List of companies permitted by Ministry of I&B to set up teleports at various locations in India ...........................................................................120

Snapshot
(Data As on 30th September 2009) Telecom Subscribers (Wireless +Wireline) Total Subscribers % Growth During Quarter Urban Subscribers Rural Subscribers Teledensity Urban Teledensity Rural Teledensity Wireless Subscribers Total Wireless Subscribers % Growth During Quarter Urban Subscribers Rural Subscribers GSM Subscribers CDMA Subscribers Teledensity Urban Teledensity Rural Teledensity Wireline Subscribers Total Wireline Subscribers % Growth During Quarter Urban Subscribers Rural Subscribers Teledensity Urban Teledensity Rural Teledensity Internet & Broadband Subscribers Total Internet Subscribers % Growth During Quarter Broadband Subscribers 14.63 Million 4.09% 7.21 Million 37.31 Million -0.60% 27.18 Million (72.8%) 10.13 Million (27.2%) 3.19 7.82 1.23 471.73 Million 10.40% 330.04 Million (70.0%) 141.68 Million (30.0%) 370.59 Million (78.6%) 101.13 Million (21.4%) 40.31 94.98 17.22 509.03 Million 9.5% 357.22 Million (70.2%) 151.81 Million (29.8%) 43.50 102.79 18.46

i

Broadcasting & Cable Services Total Number of Registered Channels with I&B Ministry Number of Pay Channels Number of private FM Radio Stations DTH Subscribers Number of Set Top Boxes in CAS areas Telecom Financial Data (for the QE Sep-09) Gross Revenue during the quarter % change in GR during Quarter Share of Public sector undertaking's in GR Adjusted Gross Revenue (AGR) % change in AGR during Quarter Revenue & Usage Parameters (for the QE Sep-09) Average Revenue Per User (ARPU) GSM Average Revenue Per User (ARPU) CDMA Minutes of Usage (MOU) GSM Minutes of Usage (MOU) CDMA Minutes of Usage for Internet Telephony Rs. 164 Rs. 89 423 Minutes 308 Minutes 118.01 Million Rs. 38,854.65 Crore -0.65% 23.09% Rs. 29,115.30 Crores -2.08% 472 138 248 17.34 Million 734,016

ii

Introduction
This Report presents the Key Parameters and growth trends for the Telecom Services in India for the quarter ending September 2009. This report provides a broad perspective on the Telecom Services to serve as a reference document for various stakeholders, research agencies and analysts. The Executive Summary of various Telecom Services has been given in the beginning followed by ‘Performance Indicators at a Glance’. Chapter-1 deliberates the growth pattern of Wireline, Wireless, Internet and Value Added Services (VAS). Chapter-2 covers the key Revenue and usage parameters. Chapter-3 gives the financial and accounting data. Chapter-4 covers QoS performance of various service providers. The information relating to Cable TV, DTH & Radio Broadcast services are provided in Chapter-5. 2. This performance indicator Report has been prepared based on the The report is also

information furnished by the Service Providers.

available on TRAI’s website (www.trai.gov.in). Any suggestion pertaining to this report may please be addressed to Pr. Advisor (ER), TRAI; Tel. +91-11-23230752, Fax. +91-11-23236650 and e-mail: adveco@trai.gov.in or eco@trai.gov.in

iii

Executive Summary & Trends at a Glance
1. The number of telephone subscribers in India increased to 509.03 Million at the end of Sep-09 from 464.82 Million in Jun-09, thereby registering a growth rate of 9.51%. With this, the overall Tele-density in India reached 43.50 as on 30th September 2009. 2. Subscription in Urban Areas increased to 357.22 Million and Rural subscription increased to 151.81 Million. Rural Teledensity reached 18.46 and urban Teledensity reached 102.79 at the end of Sep-09. The share of rural subscribers increased to 29.8% in total subscription. Composition of Telephone Subscribers

Urban w ireline 5.34% Rural w ireless 27.83%

Rural Wireline 1.99%

Urban Wireless 64.84%

3.

With 44.43 Million net additions during the Quarter, Total Wireless (GSM + CDMA) subscriber base increased to 471.73 Million at the end of Sep-09, and wireless Tele-density reached 40.31.

4.

Wireline subscriber base declined to 37.31 Million at the end of Sep-09, bringing down the wireline teledensity to 3.19.

iv

5.

Internet subscribers increased to 14.63 million at the end of September 2009 registering a quarterly growth rate of 4.09%.

6.

Share of Broadband subscription in total Internet subscription increased from 47.1% in Jun-09 to 49.3% in Sep-09. 86.53% of the Broadband subscribers are using Digital Subscriber Line (DSL) technology.

7.

Average Revenue Per User (ARPU) for GSM-Full Mobility service declined by 11.3%, from Rs. 185 in QE Jun-09 to Rs. 164 in QE Sep-09.

8.

ARPU for CDMA – Full mobility service declined by 3.8%, from Rs. 92 in QE Jun-09 to Rs. 89 in QE Sep-09.

9.

ARPU for dialup Internet usage declined by 5.08%, from Rs. 243.50 in QE Jun-09 to Rs 231.13 in the quarter ending Sep-09.

10.

MOU per subscriber for GSM – Full mobility service continued to show a declining trend. It declined by 6.68%, from 454 in QE Jun09 to 423 in QE Sep-09. The outgoing MOUs declined by 6.8% and incoming by 6.5%.

11.

MOU per subscriber for CDMA-full mobility service declined by 9.8% from 342 (Q.E Jun-09) to 308 (Q.E Sep-09). The Outgoing MOUs declined by 9.2% and Incoming MOUs declined by 10.5%.

v

12.

Gross Revenue (GR) and Adjusted Gross Revenue (AGR) of Telecom Sector for the QE Sep-09 has been Rs 38,854.65 Crore and Rs. 29,115.31 Crore respectively. There has been a reduction of 0.65% & 2.08%, as compared to previous quarter, in GR & AGR respectively.

13.

Average licence fee as percentage of AGR is 8.41% in Sep-09 as against 8.43% in previous quarter.

14.

The performance of wireline service providers improved as compared to the previous quarter, in respect of Time taken for refund of deposits after closures.

15.

The wireline service performance has deteriorated in this quarter, as compared to the previous quarter in respect of following parameters: a. Call Completion Rate (in local network) b. % Faults repaired by next working day c. Mean Time to Restore (MTTR) d. Metering and billing credibility – postpaid

16.

The performance of the wireless service providers improved in this quarter in respect of the following parameters: a. SDCCH/ Paging Chl. Congestion b. TCH Congestion c. Worst affected cells having more than 3% TCH drop (call drop) rate d. Call Set-up Success Rate (within licensee's own network)

vi

17.

The performance of the wireless service providers has deteriorated in this quarter as compared to the previous quarter in respect of the following parameters:a. Connection with good voice quality b. Metering and billing credibility - post paid c. Resolution of billing/charging/validity complaints

18.

Total Number of channels registered with Ministry of I&B increased to 472 from 447 in June-09. There are 138 pay TV channels in existence as reported by 23 broadcasters/their distributors at the Quarter ending Sept-09.

19.

Maximum number of TV channels being carried by any of the reported MSOs is 254 whereas in conventional analogue form, the maximum number of channels being carried by the reported MSOs is 100 channels.

20.

The number of private FM Radio stations in operation are 248 at the end of Sept-09.

21.

Besides free DTH service of Doordarshan, there are 6 private DTH licensees. All the 6 DTH licensees are offering pay DTH services to the customers as on 30.09.2009 and their reported subscriber base is 17.34 million.

22.

Number of Set Top Boxes (STBs) installed in CAS notified areas of Delhi, Mumbai, Kolkata and Chennai decreased from 8,16,192 in June-09 to 7,34,016 in Sept-09. * Corrected data as on 20.1.2010

vii

Trends at a Glance A. Wireline & Wireless Services
%age change over Sep 2008 %age change over Dec 2008 %age change over Mar 2009 %age change over Jun 2009

QE Sep 2008

QE Dec 2008

QE Mar 2009

QE Jun 2009

QE Sep 2009 (12 months) (9 months) (6 months) (3 months)

1) Subscriber's Base (in million)

i) Wireline ii) Wireless Total Rural Urban

38.35 315.31 353.66 90.56 263.10

37.9 346.89 384.79 103.83 280.96

37.96 391.76 429.72 122.21 307.51

37.53 427.29 464.82 136.27 328.55

37.31 471.73 509.03 151.81 357.22

-2.72% 49.61% 43.93% 67.64% 35.77%

-1.57% 35.99% 32.29% 46.21% 27.14%

-1.72% 20.41% 18.46% 24.22% 16.16%

-0.60% 10.40% 9.51% 11.41% 8.73%

2) Traffic (MOU) (minutes of use/ sub/month) Wireless - full mobility

i) GSM ii) CDMA

499 332

496 371

484 357

454 342

423 308

-15.1% -7.1%

-14.6% -16.8%

-12.5% -13.5%

-6.7% -9.8%

3) ARPU (Rs./sub/ month) Wireless - full mobility

i) GSM ii) CDMA
4) Teledensity

221 122

220 111

205 99

185 92

164 89

-25.9% -27.7%

-25.5% -20.3%

-20.3% -10.6%

-11.3% -3.8%

Population in million (Estimated) i) Wireline teledensity ii) Wireless teledensity Total Teledensity Rural teledensity Uban teledensity

1154 3.32 27.32 30.64 11.13 77.35

1158 3.27 29.96 33.23 12.72 82.15

1162 3.27 33.71 36.98 14.93 89.44

1166 3.20 36.64 39.84 16.61 95.05

1170 3.19 40.31 43.50 18.46 102.79 -3.97% 47.57% 53.56% 65.88% 32.90% -2.50% 34.56% 41.98% 45.07% 25.13% -2.50% 19.59% 30.92% 23.58% 14.93%
-0.34% 10.02% 17.64% 11.12% 8.15%

viii

B. Subscriber Base (i) Wireline Subscribers Base (in Million)
%age %age change change over over Dec Sep 2008 2008 (12 months) (9 months) %age change over Mar 2009 %age change over Jun 2009

Service Providers

QE Sep 2008

QE Dec 2008

QE Mar 2009

QE Jun 2009

QE Sep 2009

(6 months) (3 months)

BSNL MTNL Bharti Reliance Tata HFCL Shyam Total

30.12 3.57 2.51 1.02 0.82 0.15 0.16 38.35

29.5 3.53 2.61 1.07 0.87 0.16 0.16 37.9

29.34 3.57 2.73 1.11 0.92 0.16 0.13 37.96

28.79 3.55 2.83 1.13 0.95 0.16 0.11 37.53

28.45 3.51 2.93 1.15 1.00 0.17 0.10 37.31

-5.55% -1.56% 16.66% 12.96% 22.35% 10.65% -40.51% -2.72%

-3.57% -0.44% 12.19% 7.69% 15.32% 3.74% -40.51% -1.57%

-3.04% -1.56% 7.26% 3.81% 9.05% 3.74% -26.78% -1.72%

-1.19% -1.00% 3.47% 1.97% 5.61% 3.74% -13.47% -0.60%

(ii) Wireless Subscriber Base (in Million) %age %age change change over over Dec Sep 2008 2008 (12 months) (9 months) %age change over Mar 2009 %age change over Jun 2009

QE Sep 2008 Service Providers

QE Dec 2008

QE Mar 2009

QE Jun 2009

QE Sep 2009

(6 months) (3 months)

Bharti Reliance Vodofone BSNL Tata Idea Aircel MTNL BPL HFCL Shyam Total

77.48 56.05 54.63 43.86 29.33 33.98 13.88 3.96 1.66 0.36 0.12 315.3

85.65 61.34 60.93 46.23 31.76 38.01 16.08 4.19 1.95 0.38 0.37 346.9

93.92 72.67 68.77 52.15 35.12 43.02 18.48 4.48 2.16 0.39 0.6 391.8

102.37 79.62 76.45 54.36 37.12 47.09 21.80 4.61 2.31 0.38 1.19 427.29

110.51 86.12 82.85 58.76 46.80 51.45 25.73 4.68 2.50 0.38 1.96 471.73

42.63% 53.64% 51.65% 33.96% 59.55% 51.43% 85.36% 18.19% 50.31% 5.46% 1533.78% 49.61%

29.03% 40.39% 35.97% 27.10% 47.34% 35.37% 60.00% 11.70% 27.95% -0.09% 429.87% 35.99%

17.67% 18.51% 20.47% 12.67% 33.25% 19.61% 39.22% 4.47% 15.51% -2.65% 226.76% 20.41%

7.96% 8.17% 8.37% 8.08% 26.06% 9.27% 18.03% 1.61% 8.22% -1.18% 64.87% 10.40%

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C. Internet & Broadband Services
%age change %age change %age change %age change over Sep over Dec over Mar over Jun 2008 2008 2009 2009 (12 months) 1) Subscriber's Base (in million) i) Internet ii) Wireless Data subscribers ii) Broadband Connections (>=256 Kbps download speed) 2) Minutes of Use (Dialup Internet) (MOU/ subs/month) – Day Usage (8am to 8 pm) 3) ARPU (Dialup Internet) (Rs/subs/month) (9 months) (6 months) (3 months)

QE Sep 2008

QE Dec 2008

QE Mar 2009

QE Jun 2009

QE Sep 2009

12.24 88.27

12.86 101.1

13.54 117.82

14.05 126.97

14.63 127.04

19.47% 43.92%

13.77% 25.66%

8.05% 7.83%

4.09% 0.06%

4.9

5.52

6.22

6.62

7.21

47.14%

30.62%

15.92%

8.91%

212.34

214.23

226.58

243.57

237.06

11.64%

10.66%

4.63%

-2.67%

213.08

221.97

236.47

243.5

231.13

8.47%

4.13%

-2.26%

-5.08%

x

Chapter 1: Subscription Data

1

Section A: Access Service – An Overview

The number of telephone subscribers in India increased from 464.82 Million in Jun-09 to 509.03 Million at the end of Sep-09, registering a growth rate of 9.5%. The overall Teledensity in India has reached 43.50 as on 30th September 2009.

Chart 1.1: Trends in Telephone Subscribers and Teledensity in India
43.50 500
Subscriber Base (Million)

45 40 35
Teledensity

36.98 33.22 30.64

39.86

400 300

30
464.82 509.03

25 20 15 10 5

200 100 0

353.66

384.79

429.72

0 Sep-08 Dec-08 Mar-09 Quarter ending
Subscriber Base
Teledensity

Jun-09

Sep-09

Table 1.1: Subscriber Base & Teledensity – Rural & Urban Subscriber Base (Million) Quarter ending Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Rural 90.56 103.83 122.21 136.27 151.81 Urban 263.10 280.96 307.51 328.55 357.22 Teledensity Rural 11.13 12.72 14.93 16.61 18.46 Urban 77.35 82.15 89.44 95.05 102.79

2

1.2

Subscription in Urban Areas grew from 328.55 Million in Jun-09 to 357.22 Million in Sep-09, taking the urban Teledensity to 102.79. Rural subscription increased from 136.27 Million to 151.81 Million, taking the Rural Teledensity from 16.61 in Jun-09 to 18.46 at the end of Sep-09.

1.3

Overall rate of growth of Access Subscription in QE Sep-09 (9.5%) has shown an increase as compared to previous quarter (8.2%). About 65% of the net additions have been in urban areas. However, in terms of rate of growth, rural areas registered a higher rate.

Chart 1.2: Market Share - Rural & Urban

100% 74.4% 73.0% 71.6% 70.7% 70.2% Sep-09 29.8% 80% 60% 40% 20% 0% Sep-08 Dec-08 Mar-09 Rural Urban Jun-09 25.6% 27.0% 28.4% 29.3%

1.4

Share of rural areas in total subscription has increased to 29.8%.

3

Chart 1.3: Composition of Access subscription – Wireline & Wireless

100% 80% 89.2% 90.2% 91.2% 91.9% 60% 40% 20% 10.8% 0% Sep-08 Dec-08 Mar-09 Wireless Jun-09 Sep-09 9.8% 8.8% 8.1% 7.3% 92.7%

Wireline

1.5

The dominance of wireless segment in access services is steadily growing

Table 1.2: Service Area wise Access (Wireless +Wireline) Subscribers Subscribers (Million) Service Area Andhra Pradesh Assam Bihar Delhi Gujarat Haryana Himachal Pradesh J&K Karnataka Kerala Madhya Pradesh Maharashtra Mumbai North East Orissa Punjab Rajasthan Jun-09 35.59 6.74 25.55 26.02 27.89 11.40 3.97 4.30 28.21 21.53 24.30 36.71 23.33 4.17 10.63 17.19 26.89 Sep-09 39.60 7.35 28.82 27.47 29.54 12.25 4.37 4.82 31.62 23.65 26.53 39.43 25.36 4.49 12.10 18.35 29.34 Net Rate of Additions change 4.01 11.3% 0.61 9.0% 3.26 12.8% 1.45 5.6% 1.65 5.9% 0.85 7.5% 0.40 10.0% 0.51 12.0% 3.41 12.1% 2.12 9.8% 2.23 9.2% 2.72 7.4% 2.03 8.7% 0.32 7.6% 1.48 13.9% 1.16 6.8% 2.45 9.1%

4

Subscribers (Million) Service Area T.N. Chennai U.P.(E) U.P.(W) Kolkata W.B. Total Jun-09 32.57 11.06 31.65 22.78 13.97 18.36 464.82 Sep-09 37.06 12.01 34.84 24.99 14.86 20.17 509.03 Net Rate of Additions change 4.48 13.8% 0.95 8.6% 3.19 10.1% 2.21 9.7% 0.88 6.3% 1.81 9.9% 44.21 9.5%

Table 1.3: Service Area wise Teledensity as on 30th September 2009 Service Area Andhra Pradesh Assam Bihar Delhi Gujarat Haryana Himachal Pradesh J&K Karnataka Kerala Madhya Pradesh Maharashtra Mumbai North East Orissa Punjab Rajasthan T.N. Chennai U.P.(E) U.P.(W) Kolkata W.B. Total Rural Teledensity 18.84 15.31 10.56 27.62 31.98 45.04 22.21 17.96 38.92 10.68 22.36* 19.85 15.68 34.77 24.69 32.00* 12.28* 19.14* 18.46 Urban Teledensity 121.92 77.85 100.28 85.04 84.62 231.19 96.25 116.11 156.27 77.00 99.53* 81.94 102.94 107.77 106.78 107.14* 88.52* 89.83* 102.79 Total Teledensity 47.35 24.47 22.75 154.99 50.52 49.32 65.24 41.86 54.01 68.98 28.11 57.77* 34.62 30.08 64.22 44.26 72.02* 29.11* 39.18* 43.50

* Population data/projections are available state-wise only

5

Table 1.4: Subscribers (Rural & Urban) & Market share

Service Provider Bharti Reliance BSNL Vodafone IDEA Tata Aircel MTNL Loop Mobile (BPL) Sistema HFCL Total 1.6

Urban Total Market Rural Subscribers Subscribers Subscribers Share 38.45 74.99 113.44 22.29% 17.52 69.75 87.27 17.14% 31.02 56.19 87.20 17.13% 27.29 55.56 82.85 16.28% 22.15 29.30 51.45 10.11% 4.46 43.34 47.80 9.39% 10.74 14.99 25.73 5.05% 8.19 8.19 1.61% 0.19 0.00 151.81 2.50 1.86 0.54 357.22 2.50 2.06 0.55 509.03 0.49% 0.40% 0.11%

Bharti is the leading operator in Access segment in terms of number of subscribers, followed by Reliance.

6

Section B: Wireless Service
Table 1.5: List of Cellular Mobile (GSM & CDMA) Service Providers currently providing service [As on 30th September 2009] SLNo. 1 2 3 4 5 6 7 Service Provider Bharti Aircel Group Reliance Communications Reliance Telecom Vodafone Tata Teleservices IDEA (Including Spice) Sistema Shyam Telelink BSNL MTNL Loop Telecom Private Ltd HFCL Area of Operation All India AP, TN, Karnataka, Assam, Bihar, Chennai, Delhi, HP, J&K, Kerala, Kolkata, MH, Mumbai, NE, Orissa, UP(E), UP(W) & WB All India (except Assam & NE) Kolkata, MP, WB, HP, Bihar, OR, Assam & NE All India All India Delhi, Mumbai, AP, MP, Rajasthan, Punjab, Haryana, Gujarat, TN, Karnataka, Bihar, HP, Kerala, MH, Orissa, UP(E) & UP(W) Kolkata, TN (incl. Chennai) Kerala, Rajasthan, Bihar & WB All India (except Delhi & Mumbai) Delhi & Mumbai Mumbai Punjab

8 9 10 11 12

7

1.7

Total Wireless (GSM + CDMA) subscriber base increased from 427.29 Million at the end of June-09 to 471.73 Million at the end of Sept-09, thereby showing a growth of 10.4%. During this quarter 44.43 million subscribers were added. Wireless Teledensity increased from 36.64 at the end of June-09 to 40.31 at he end of Sept-09. Chart 1.4: Wireless Subscriber Base and Teledensity
45 40 35 Teledensity 30 25 427.29 471.73 315.31 346.89 391.76 20 15 10 5 0 Sep-08 Dec-08 Mar-09 Quarter ending Subscriber Base Teledensity Jun-09 Sep-09 0

500 Subscriber Base (Million) 33.71 400 27.32 300 200 100 29.95

40.31 36.64

Table 1.6: Wireless Subscriber Base & Teledensity – Rural & Urban Subscriber Base (Million) Quarter ending Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Rural 79.61 93.15 111.63 125.95 141.68 Urban 235.70 253.74 280.13 301.34 330.04 Teledensity Rural 9.78 11.41 13.64 15.35 17.22 Urban 69.29 74.19 81.47 87.18 94.98

8

1.8

The rural Wireless subscribers increased from 125.95 Million in Jun-09 to 141.68 Million in Sept-09.

1.9

Rural subscription (12.5%) has been growing at a faster rate than Urban (9.5%). The share of rural wireless subscription is 30% in total wireless subscription.

1.10 Overall rate of growth of Wireless Subscription in QE Sept-09 (10.40%) is higher as compared to previous quarter (9.07%). Higher growth rate could mainly be attributed to the launch of GSM services by Tata Teleservices Limited across service areas. Chart 1.5: Wireless Market Share – Rural & Urban

100.0% 70.5% 74.8% 73.1% 71.5% 70.0% Sep-09 30.0% 80.0% 60.0% 40.0% 20.0% 0.0% Sep-08 Dec-08 Mar-09 Rural Urban Jun-09 25.2% 26.9% 28.5% 29.5%

9

Table 1.7: Growth in Wireless Subscribers

Subscriber Base (Millions) Service Provider Bharti Reliance Vodafone BSNL IDEA Tata Aircel MTNL Loop Mobile (BPL) Sistema HFCL Total Jun-09 102.37 79.62 76.45 54.36 47.09 37.12 21.80 4.61 2.31 1.19 0.38 427.29 Sep-09 110.51 86.12 82.85 58.76 51.45 46.80 25.73 4.68 2.50 1.96 0.38 471.73 Net Additions 8.14 6.50 6.40 4.39 4.37 9.67 3.93 0.07 0.19 0.77 (0.005) 44.43 Rate of Growth 8.0% 8.2% 8.4% 8.1% 9.3% 26.1% 18.0% 1.6% 8.2% 64.9% -1.2% 10.4%

Market Share Jun-09 24.0% 18.6% 17.9% 12.7% 11.0% 8.7% 5.1% 1.1% 0.5% 0.3% 0.1%

Market Share Sep-09 23.4% 18.3% 17.6% 12.5% 10.9% 9.9% 5.5% 1.0% 0.5% 0.4% 0.1%

10

Table 1.8: Service Area wise Wireless Subscribers Subscribers (Million) Service Area Andhra Pradesh Assam Bihar Delhi Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Mumbai North East Orissa Punjab Rajasthan T.N. Chennai U.P.(E) U.P.(W) Kolkata W.B. Total Jun-09 33.10 6.40 24.17 23.44 25.82 10.55 3.60 4.07 25.45 17.98 22.66 33.52 20.43 3.84 10.00 15.56 25.27 30.35 9.65 30.20 21.45 12.44 17.36 427.29 Sep-09 37.13 7.02 27.43 24.84 27.48 11.42 4.01 4.58 28.87 20.12 24.92 36.33 22.46 4.16 11.48 16.72 27.74 34.87 10.58 33.38 23.65 13.33 19.22 471.73 Net Rate of Additions Growth 4.03 12.2% 0.62 9.7% 3.27 13.5% 1.40 6.0% 1.66 6.4% 0.87 8.2% 0.40 11.2% 0.52 3.42 2.14 2.27 2.80 2.03 0.32 1.48 1.17 2.47 4.52 0.93 3.19 2.20 0.89 1.86 44.43 12.7% 13.4% 11.9% 10.0% 8.4% 9.9% 8.3% 14.8% 7.5% 9.8% 14.9% 9.6% 10.5% 10.3% 7.1% 10.7% 10.4%

11

Table 1.9: Service Area wise Wireless Teledensity as on 30th September 2009 Rural Urban Total Teledesnity Teledensity Teledesnity 17.49 14.94 10.11 26.17 30.07 40.18 21.76 16.34 29.50 10.25 20.76* 18.95 14.98 31.44 23.63 29.67* 11.88* 18.39* 17.22 114.75 72.41 95.12 78.36 78.31 221.01 89.94 106.10 143.39 71.76 89.77* 74.02 97.08 98.58 100.10 99.21* 83.75* 81.89* 94.98 44.39 23.36 21.66 140.13 46.98 45.97 59.81 39.85 49.31 58.67 26.41 52.42* 32.05 28.53 58.53 41.85 66.71* 27.75* 36.40* 40.31*

Service Area Andhra Pradesh Assam Bihar Delhi Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Mumbai North East Orissa Punjab Rajasthan T.N. Chennai U.P.(E) U.P.(W) Kolkata W.B. Total

* Population data/projections are available state-wise only

12

Table 1.10: Rural Subscribers and Market Share Service Provider Bharti Vodafone Idea BSNL Reliance Aircel Tata Sistema HFCL BPL MTNL Total Subscribers as on Sept-09 (in millions) 110.51 82.85 51.45 58.76 86.12 25.73 46.80 1.96 0.38 2.50 4.68 471.73 Rural Subscribers (in millions) 38.45 27.29 22.15 20.92 17.52 10.74 4.43 0.19 0.001 141.68 Percentage of rural subscribers 34.79 32.94 43.59 35.61 20.35 41.74 9.46 9.49 0.31 29.48 Market Share of Rural Subscribers 27.14 19.26 15.63 14.77 12.37 7.58 3.12 0.13 0.001 100

Detailed table on service provider wise subscriber base in each service area is at Annexure-1.

13

Chart 1.11: Wireless Subscription: GSM vs CDMA
471.73 391.76 315.31 346.89
328.83 370.594
101.132 Sep-09

500 450 Subscriber Base (Million) 400 350 250 200 150 100 50 0
Sep-08 Dec-08 Mar-09 81.63 88.66 94.49

427.29

233.68

258.24

297.26

300

98.46

Jun-09

Quarter ending CDMA GSM

1.11 GSM subscription has been growing at a faster rate and the ratio between the growth rates of GSM & CDMA has also been increasing. In the QE Sep-09 growth rate of GSM was 4.69 times the growth rate of CDMA, as against 2.53 in the previous quarter. At the end of Sep-09, GSM subscribers constituted 78.6% of the wireless market.

14

GSM Services 1.12 The GSM subscribers were 370.59 million at the quarter ending Sep-09 as against 328.83 million at the end of the previous quarter, showing a growth of 12.7%. Bharti with 110.51 million subscribers continues to be the largest GSM mobile operator. However, in terms of net additions during the quarter, Tata added the highest number of subscribers (8.85 Million), followed by Bharti (8.14 Million). Table 1.12: Group-wise Market Share (in terms of subscription) within GSM Service Jun-09 Service Provider Bharti Vodafone BSNL Idea Reliance Aircel Tata MTNL BPL Total No of Subscribers (in Millions) 102.37 76.45 49.10 47.08 25.42 21.80 4.30 2.31 328.83 Market Share (in %age) 31.13 23.25 14.93 14.32 7.73 6.63 1.31 0.70 100 Sep-09 Net No of Market additions (in Subscribers Share (in Millions) (in Millions) %age) 110.51 29.82 8.14 82.85 22.35 6.4 53.4 14.41 4.3 51.46 13.89 4.38 30.93 8.35 5.51 25.73 6.94 3.93 8.85 2.39 8.85 4.37 1.18 0.07 2.5 0.67 0.19 370.59 100 41.76

15

CDMA Services 1.13 The CDMA Subscriber Base increased to 101.13 million during the quarter ending Sep-09 from 98.46 million at the end of previous quarter. The growth in this quarter is 2.7% as against 4.2% for the previous quarter. Reliance is the largest CDMA mobile operator with 55.18 Million subscribers, followed by Tata Teleservices (37.94 million) and BSNL (5.35 million). Table 1.13: Market Share (in terms of subscription) within CDMA Service

Jun-09 Service Provider No of Subscribers Market (in Share Millions) (in %age) 54.19 55.04 37.12 5.27 1.19 0.38 0.31 98.46 37.70 5.35 1.21 0.39 0.31

Sep-09 No of Subscribers (in Millions) 55.18 37.94 5.35 1.96 0.38 0.31 101.13

Reliance Tata Teleservices BSNL Sistema HFCL MTNL Total

Net Additions (in Market Millons) Share (in %age) 54.57 0.99 37.52 5.29 1.94 0.38 0.31 0.82 0.08 0.77 0 0 2.67

16

Section C: Wireline Service
Table 1.14: Service Providers providing Wireline service [as on 30th September 2009] Sl. No. 1 2 Name of the Service Provider BSNL MTNL Area of Operation All India except Delhi & Mumbai Delhi & Mumbai Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu, Chennai, UPEast,UP-West and West Bengal. Andhra Pradesh, Assam, Bihar, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, North East, Orissa, Punjab, Rajasthan, Tamil Nadu, Chennai, UP(E), UP(W) and West Bengal Punjab Rajasthan Andhra Pradesh, Bihar, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, J&K, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, Orissa, Punjab, Rajasthan, Tamilnadu, UP(East), UP(West) and West Bengal

3

Bharti Airtel Ltd

4

Tata Teleservices Ltd.

5 6

HFCL Infotel Ltd Shyam Telelink Ltd Reliance Communications Ltd.

7

17

1.14 Wireline subscriber base declined from 37.53 Million in June-09 to 37.31 Million at the end of Sept-09. Wireline teledensity is 3.19. Chart 1.7: Wireline Subscriber Base and Teledensity

39 38 Subscriber Base (Million) 38 38 38 38.35 38 37 37 37 37 37 Sep-08 Dec-08 Mar-09 Quarter ending Subscriber Base Teledensity Jun-09 Sep-09 3.22 37.90 37.96 3.19 37.53 3.32

3.4

3.27

3.3 3.27 3.3 Teledensity

3.2

37.31

3.2

3.1

Table 1.15: Wireline Subscriber Base & Teledensity – Rural & Urban Subscriber Base (Million) Quarter ending Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Rural 10.95 10.68 10.58 10.32 10.13 Urban 27.40 27.22 27.38 27.21 27.17 Teledensity Rural 1.35 1.31 1.29 1.26 1.23 Urban 8.06 7.96 7.96 7.87 7.82

1.15 Rural Wireline subscription has been declining at a faster rate than Urban subscription, leading to decline in the share of Rural subscription

18

Chart 1.8: Wireline Market share – Rural & Urban

100.0% 71.4% 71.8% 72.1% 72.5% 72.8% Sep-09 27.2% 80.0% 60.0% 40.0% 28.6% 28.2% 27.9% 20.0% 0.0% Sep-08 Dec-08 Mar-09 Rural Urban Jun-09 27.5%

Table 1.16: Service Provider wise Subscribers (Rural & Urban) & Market Share

Subscriber Base (Million) Service Provider BSNL MTNL Bharti Reliance Tata HFCL Sistema Total Rural 10.09 0.00 0.03 0.01 10.13 Urban 18.36 3.51 2.93 1.15 0.97 0.17 0.09 27.18 Total 28.45 3.51 2.93 1.15 1.00 0.17 0.10 37.31

Share of rural subscription 35.47% 0.08% 3.11% 8.77%

19

Table 1.17: Growth in Subscribers

Service Provider BSNL MTNL Bharti Reliance Tata HFCL Sistema Total

Subscriber Base (Million) Net Jun-09 Sep-09 Additions 28.79 28.45 -0.35 3.55 3.51 -0.04 2.83 2.93 0.10 1.13 1.15 0.02 0.95 1.00 0.05 0.16 0.17 0.00 0.11 0.10 -0.02 37.53 37.31 -0.22

Rate of growth -1.2% -1.0% 3.5% 1.9% 5.3% 2.1% -14.3% -0.6%

Market shareJun-09 76.73% 9.46% 7.54% 3.01% 2.54% 0.43% 0.30%

Market shareSep-09 76.25% 9.42% 7.85% 3.09% 2.69% 0.44% 0.26%

1.16 BSNL/MTNL, the PSU operators own 85.67% of the Market share. While major Private Wireline service providers have increased their subscriber base, BSNL/MTNL lost 0.38 Million subscribers during the quarter ending Sept-09. Wireline subscriber additions have been seen only in Delhi, Chennai UP(E) & UP(W).

20

Table 1.18: Service Area wise Wireline Subscribers Service Area Andhra Pradesh Assam Bihar Delhi Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Mumbai North East Orissa Punjab Rajasthan T.N. Chennai U.P.(E) U.P.(W) Kolkata W.B. Total Net Additions -0.015 -0.009 -0.002 0.056 -0.005 -0.016 -0.007 -0.002 -0.004 -0.020 -0.037 -0.082 0.000 -0.001 -0.002 -0.001 -0.025 -0.035 0.021 0.007 0.005 -0.001 -0.048 -0.224 Rate of Change -0.6% -2.7% -0.1% 2.2% -0.2% -1.9% -1.8% -0.9% -0.1% -0.6% -2.3% -2.6% 0.0% -0.4% -0.4% -0.1% -1.6% -1.6% 1.5% 0.5% 0.4% 0.0% -4.8% -0.6%

Jun-09 2.49 0.34 1.38 2.58 2.07 0.85 0.37 0.23 2.76 3.55 1.64 3.18 2.89 0.33 0.63 1.63 1.62 2.22 1.41 1.45 1.34 1.53 1.01 37.53

Sep-09 2.48 0.33 1.38 2.63 2.07 0.83 0.36 0.23 2.75 3.53 1.60 3.10 2.89 0.33 0.63 1.63 1.60 2.19 1.43 1.46 1.34 1.53 0.96 37.31

21

Table 1.19: Service Area wise Wireline Teledensity as on 30th September 2009 Rural Urban Total Teledesnity Teledensity Teledesnity 1.35 0.37 0.45 1.46 1.90 4.86 0.46 1.62 9.42 0.43 1.60* 0.90 0.71 3.33 1.07 2.33* 0.40* 0.74* 1.23 7.17 5.44 5.16 6.68 6.31 10.18 6.32 10.00 12.89 5.24 9.77* 7.92 5.87 9.19 6.69 7.93* 4.77* 7.95* 7.82 2.96 1.11 1.09 14.85 3.54 3.35 5.43 2.01 4.70 10.31 1.70 5.35* 2.57 1.56 5.69 2.41 5.31* 1.36* 2.79* 3.19

Service Area Andhra Pradesh Assam Bihar Delhi Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Mumbai North East Orissa Punjab Rajasthan T.N. Chennai U.P.(E) U.P.(W) Kolkata W.B. Total

* Population data/projections are available state-wise only

Detailed table on service provider wise subscriber base in each service area is at Annexure-2.

22

Section D: Internet Service

1.17 There are 14.63 million Internet subscribers at the end of September 2009 as compared to 14.05 million at the end of June 2009 registering a growth of 4.09%. This growth rate is higher as compared to QE June 2009 (3.80%). 1.18 The number of Broadband subscribers is 7.21 million at the end of September 2009 as compared to 6.62 million at the end of June 2009, thus registering a growth of 8.9% over the previous quarter. Chart 1.9: Trends in Internet/Broadband subscription
16 Subscriber Base (Million) 14 12 10 8 6 4 2 0
Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

12.24
7.34

12.86

13.54
7.32

14.05
7.43

14.63
7.42

7.34

4.90

5.52

Quarter ending Broadband (>=256 Kbps) Internet (2Mbps

1400000

1200000 Number of Subscri bers

1000000

887323

738253

577293

800000

615035

478433

458680 375197

377401

600000

454703

495174

274838 332173

400000

32737

18486

29992

200000

5117

3098

215152

1851

1873

1112

1051

225879 319750
Uttar Pradesh

295574

318906

261565

0 Maharastra Tamilnadu Karnataka

Kerala

Andhra West Pradesh Bengal State

Gujarat

Rajasthan

Punjab

1.29 Maharashtra is having largest Internet (=256 Kbps) subscriber base in the country.

27

387

Chart 1.13: Growth of wireless subscribers capable of Accessing Data services/Internet

140 Number of subscribers (in million) 120 100 80 60 40 20 0 Sep-08 Dec-08 Mar-09 Quarter ending
Note: The above chart depicts the number of subscribers who have subscribed to Data Services

117.82 101.1 88.27

126.97

127.04

Jun-09

Sep-09

28

Section E: Other Value Added Services – PMRTS & VSAT
Public Mobile Radio Trunk Services (PMRTS) Table 1.21: PMRTS Subscriber base

Name of the Service Provider

Operative Areas Delhi, Faridabad, Mumbai, Vashi, Ahmedabad, Baroda, Surat, Bharuch, Chennai, Bangalore Delhi, Jaipur, Gurgaon, Faridabad Bangalore, Hyderabad, Chennai Pune, Vashi, Mumbai Vishakhapatnam Delhi, Calcutta Mumbai Mumbai, Chennai Navi Mumbai (Belapur), Delhi Indore Bangalore Delhi

Subscriber Subscriber Base as on Base as on %age 30.06.09 30.09.09 change

The Arvind Mills Ltd.

10862

11307

4.10

Procall Limited QuickCall Smartalk Pvt Limited Aryadoot Transport Pvt Limited United Liner Agencies of India (Pvt) Ltd Bhilwara Telenet Services Pvt Limited Arya Offshore Services Pvt Ltd. German Express Shipping Agency (India) Pvt Ltd. (Hapag Llyod) Jet-Aiu Skyline Transport Pvt Ltd. India Satcom Ltd. Container Movement (Bombay) Transport Pvt Ltd. Total

7417 2860 2449 1802 1692 1514 1005 749 513 87 1 30951

6936 2984 2560 1922 1718 1452 1058 731 551 50 1 31270

-6.49 4.34 4.53 6.66 1.54 -4.10 5.27 -2.40 7.41 -42.53 0.00 1.03

29

1.30 The subscriber base of PMRTS increased from 30,951 in QE June09 to 31,270 in QE Sep-09. 1.31 Delhi continues to have the highest number of subscribers (6748) followed by Mumbai (5112), Chennai (4318) and Bangalore (3944). These 4 service areas account for 64.35% of the total subscribers. Service area-wise subscriber base is at Annexure-5.

Very Small Aperture Terminal (VSAT) Table 1.22: VSAT Service Providers currently providing service & subscriber base
Sr. No. Name of Service Provider Hughes Communications Ltd. HCL Comnet Bharti Airtel Limited, Bangalore Bharti Broadband Essel Shyam Tatanet Services ITI GNFC BSNL Total Quarter ending June-09 31,846 26,100 28,059 4,801 2,728 10,951 16 0 3,827 1,08,328 Sept-09 32,725 26,705 33,719 1,070 2,728 11,555 16 0 4,339 1,12,857 %age change Market Share

1 2 3 4 5 6 7 8 9

2.76 2.32 20.17 -77.71 0.00 5.52 0.00 0.00 13.38 4.18

29.00% 23.66% 29.88% 0.95% 2.42% 10.24% 0.01% 0.00% 3.84%

1.32 The total number of VSAT subscribers increased from 1,08,326 in June 2009 to 1,12,857 in September 2009. Net additons has been 4529 and, the growth rate 4.18%.

30

1.33 Bharti Airtel Ltd. has replaced Hughes Communication Limited as the market leader with subscriber base of 33,719, followed by Hughes Communication Limited (32,725) and HCL Comnet (26,705) VSAT subscribers respectively. 1.34 Bharti Airtel Ltd has the highest growth rate of 20.17% in this quarter followed by BSNL with 13.38%. 1.35 Bharti Broadband (-77.71%) has registered a sharp decline in growth in this quarter

Chart 1.14 : Number of VSAT connections
112,857 108,328

115000 110000 105000 100000 95000 90000 85000
95,035 102,220

94,436

Sep-08

Dec-08

Mar-09 Quarter ending

Jun-09

Sep-09

31

Chapter 2: Revenue and Usage

-----------------------------------------------------------------------------------------------------------For all the parameters, Metros indicate data for Delhi, Mumbai & Kolkata. Data for Chennai service area has been included in Circle A, as part of TN

32

Section A: GSM – Full Mobility Service
Table 2.1: Key Indicators %age June-09 Subscriber base (Million) Share of prepaid (%) Incoming MOU* per sub per month Outgoing MOU* per sub per month Outgoing SMS per sub. Per month Average Revenue Per User (ARPU) (Rs. per month)
* Minutes of usage

Sept-09 368 94.8 216 207 29 164

Change 12.25% 0.6% -6.5% -6.8% 2.9% -11.3%

328 94.3 231 223 28 185

Chart 2.1: Traffic pattern

Inter-circle to own Mobile 5.2% Inter-cricle to Fixed 0.9%

Inter-circle to other Mobile 7.5% ILD 0.4%

Intra-circle to Fixed 3.3%

Intra-circle to own Mobile 49.8% Intra-circle to other Mobile 32.8%

33

Chart 2.2: Proportion of prepaid subscribers

100%

97.20%

93.54%

90% 85% 80% 75% 70% 65% 60%

94.13%

97.53%

95%

96.76%

97.04%

85.34%

86.43%

94.31%

Circle A
Jun-09

Circle B

Circle C

Metros

All India

Sep-09

2.1

Share of prepaid subscription has grown from 94.3% in Jun-09 to 94.83% in Sep-09.

Table 2.2: ARPU (Rs. per month) Circle category Circle A Circle B Circle C Metro All India All private SPs BSNL/MTNL 2.2 Postpaid 512 462 495 614 530 570 387 Prepaid 146 140 142 143 143 145 133 Blended ARPU 169 150 151 209 164 166 152

The all India blended ARPU per month declined by 11.3% from Rs. 185 in Jun-09 to Rs. 164 in Sep-09.

2.3

Decline in ARPU was largely in the prepaid segment (12% from Rs. 162 in Jun-09 to Rs. 143 in Sep-09). The decline in postpaid was 1.7% (from Rs. 539 in Jun-09 to Rs. 530 in Sep-09).

34

94.83%

Table 2.3: Composition of Revenue (%) Item Rental Revenue Revenue from Call charges (usage) Revenue from Roaming Revenue from SMS Other Revenues * Jun-09 17.5% 61.7% 8.3% 4.2% 8.3% Sep-09 18.5% 60.9% 7.7% 4.7% 8.3%

* Other revenue includes revenue from other value added services, installation etc.

Table 2.4: MOU & SMS (per subscriber per month) Postpaid Circle Circle A Circle B Circle C Metro All India Prepaid Outgoing SMS 46 16 8 18 26

Outgoing Incoming Total Outgoing Outgoing Incoming Total MOU MOU MOU SMS MOU MOU MOU 605 472 1078 106 171 190 361 606 468 1074 52 191 203 394 528 368 896 36 221 255 476 515 425 941 60 176 177 353 574 451 1025 76 186 203 389 BLENDED [Postpaid + Prepaid] Circle Circle A Circle B Circle C Metro All India Outgoing MOU 198 204 229 223 207 Incoming MOU 207 211 258 212 216 Total MOU 405 415 487 435 423

Outgoing SMS 50 17 9 24 29

35

2.4

MOU per subscriber continued to show a declining trend. It has declined by 6.68%, from 454 in QE Jun-09 to 423 in QE Sep-09. The outgoing MOUs declined by 6.84% and incoming by 6.52%.

2.5 2.6

Decline in MOU is 3.40% in Postpaid and 6.34% in Prepaid. The overall ratio of incoming-outgoing MOUs remained unchanged at 51:49.

2.7

Outgoing SMS per subscriber increased from 28 in Jun-09 to 29 in Sep-09.

Table 2.5: Traffic pattern

Circle Category Circle A Circle B Circle C Metros All India

Intracircle to Fixed 3.86% 3.31% 1.67% 3.99%

Local (Intra-circle) to own Mobile 45.45% 55.14% 59.92% 34.20% to other Mobile 38.76% 29.99% 25.53% 32.76% 32.80%

Intercircle to Fixed 0.74% 0.65% 1.18%

NLD (Inter-circle) to own Mobile 4.52% 3.99% 5.18% to other ILD Mobile 6.28% 6.53% 6.21% 15.51% 0.40% 0.39% 0.30% 0.68%

1.88% 10.98% 0.91% 5.21%

3.34% 49.83%

7.49% 0.42%

36

Average Subscriber outgo* per minute 2.8 The tariff plans are of bundled nature and the trade-off is generally between monthly fixed charges and Variable (call) charges. The average outgo per outgoing minute (Rental revenue + Airtime revenue per outgoing minute), therefore, is a realistic indicator of tariff levels. The table below provides the figures for the quarter ending Sept-09. Table 2.6: Average outgo per outgoing minute [Rs. Per min] Circle Category Circle A Circle B Circle C Metros All India Postpaid 0.76 0.71 0.91 0.90 0.80 Prepaid 0.76 0.65 0.60 0.79 0.69 Blended 0.76 0.66 0.61 0.83 0.71

* Outgo includes both Rental and call charges 2.9 All India blended average outgo per minute declined from Rs. 0.74 in Jun-09 to Rs. 0.71 in Sep-09

37

Section B: CDMA – Full Mobility Service
Table 2.7: Key Indicators

Parameters Subscriber Base in Millions Share of Prepaid (%) Incoming MOUs per subs per month Outgoing MOUs per subs per month Outgoing SMS per subs per month ARPU (Rs. Per month) Chart 2.3: Traffic Pattern
Inter Circle to Other Mobile 9.0%

Jun-09 78.78 93.1% 182 160 11 92

Sep-09 82.61 93.4% 163 145 10 89

% Change 4.9% 0.3% -10.5% -9.2% -0.9% -3.8%

Inter Circle to Own Mobile 9.7%

ILD 0.2%

Intra Circle to Fixed 3.4%

Inter Circle to Fixed 1.0%

Intra Circle to Own Mobile 45.1%

Intra Circle to other Mobile 31.6%

38

Chart 2.4: Proportion of prepaid subscribers
0.98 0.96 0.94 95.4% 96.1% 0.92 0.9 92.7%

95.0%

96.1%

92.5%

89.6%

93.1%

0.88 0.86 0.84

Circle A

Circle B

Circle C Jun-09 Sep-09

Metro

89.2%

All India

2.10 Share of prepaid subscription has grown from from 93.1% in Jun09 to 93.4% at the end of Sep-09.

Table 2.8: ARPU (Rs. per month) Circle Circle A Circle B Circle C Metro All India Postpaid 410 347 461 460 412 Prepaid 61 61 79 74 65 Blended ARPU 87 75 94 115 89

2.11 The all India Blended ARPU for prepaid service declined by 5.3%, from Rs. 69 in Jun-09 to Rs. 65 in Sep-09. But ARPU for Postpaid service increased from Rs.396 in Jun-09 to Rs. 412 in Sep-09.

39

93.4%

Table 2.9: Composition of Revenue (%) Item Rental Revenue Revenue from Call charges (usage) Revenue from Roaming Revenue from SMS Other Revenues * Table 2.10: MOU & SMS (per subscriber per month) Prepaid Outgoing Outgoing Incoming Total Outgoing SMS MOU MOU MOU SMS 16 20 7 42 25 91 122 162 127 116 126 152 220 156 150 217 274 382 283 266 11 5 4 16 9 Jun-09 25.2% 57.2% 2.1% 6.0% 9.5% Sep-09 26.6% 56.0% 1.9% 5.1% 10.4%

* Other revenue includes revenue from other value added services, installation etc.

Postpaid Circle Circle A Circle B Circle C Metro All India Outgoing Incoming MOU MOU 516 605 756 496 544 331 360 353 350 346 Total MOU 847 965 1109 846 890

Blended Circle Circle A Circle B Circle C Metro All India Outgoing MOU 123 145 185 166 145 Incoming Outgoing Total MOU MOU SMS 141 163 225 176 163 264 308 410 342 308 12 6 4 19 10

2.12 The total MOU per subscriber per month continued to show a declining trend. It declined by 9.8%, from 342 in Q.E June-09 to 308 in Q.E Sep-09.

40

2.13 The Outgoing MOU declined by 9.2%, from 160 in previous quarter to 145 in the current quarter. Incoming MOU also declined, by 10.5%, from 182 to 163. 2.14 SMS usage slightly declined from 11 in Jun-09 to 10 in Sep-09.

Table 2.11: Traffic Pattern Intracircle to Fixed 4.27% 3.17% 1.24% 3.82% 3.44% Local (Intra-circle) to own to other Mobile Mobile 37.64% 41.25% 51.67% 28.22% 50.93% 32.51% 41.51% 24.36% 45.06% 31.60% Intercircle to Fixed 0.89% 0.82% 1.11% 1.38% 1.00% NLD (Inter-circle) to own to other ILD Mobile Mobile 9.52% 6.26% 0.17% 8.45% 7.45% 0.22% 8.12% 6.03% 0.05% 12.69% 16.08% 0.16% 9.67% 8.98% 0.17%

Circle Category Circle A Circle B Circle C Metros All India

Table 2.12: Average outgo per outgoing minute [Rs. Per min] Circle Category Circle A Circle B Circle C Metros All India Postpaid 0.78 0.61 0.63 0.88 0.75 Prepaid 0.59 0.46 0.43 0.57 0.51 Blended 0.65 0.49 0.46 0.67 0.57

* Outgo includes both Rental and call charges 2.15 All India average outgo per minute has slightly increased from Re. 0.56 in June-09 to Rs. 0.57 in Sep-09.

41

Section C: Internet Services
Revenue of ISPs 2.16 The total Revenue of the Internet Services as reported by ISPs was Rs.2109.34 crores for the quarter ending September 2009 as compared to Rs. 2039.51 crores in the quarter ending June-09, showing an increase of 3.42%. Total Revenue includes Rs. 131.94 crores from Dial up Subscribers, 446.67 crores from Leased Line Subscribers, 1256.70 crores from Broadband Subscribers, 12.77 crores from Internet Telephony Subscribers, 1.02 crores from IPTV Services and 260.22 crores from Other Services. Dial up Access – ARPU & Minutes of use per subscriber 2.17 ARPU per month for dialup Internet usage is Rs 231.13 for the quarter ending Sept-09 as against Rs. 243.50 in QE Mar-09, thereby showing a decrease of 5.08%. 2.18 The average Minutes of Usage (MoU) per subscriber per month for dialup subscribers has declined. During the day time i.e. between 8 a.m to 8 p.m, MoU has declined from 243.57 minutes in QE June-09 to 237.06 in QE Sept-09 and during night time i.e. between 8 p.m to 8 a.m., it has declined from 109.67 minutes in QE June-09 to 97.37 in QE Sept-09 Internet Telephony 2.19 Total Minutes of Usage (MOU) for Internet Telephony has declined from 131.94 million in QE June-09 to 118.01 million in QE Sept09. Overall decrease in Internet Telephoney Minutes is mainly due to reduction of telephony minutes as reported by M/s Trak Online Net India Pvt Ltd from 38 million to 26 million during the quarter.

42

Chapter 3: Financial Data of Telecom Service Sector

43

Table 3.1: Gross Revenue (GR), Adjusted Gross Revenue (AGR), License Fee (LF) & Spectrum Charges

Particulars

QE Jun-09

QE Sep-09

%age Change

(Rs. in Crore) (Rs. in Crore) Gross Revenue (GR) Adjusted Gross Revenue (AGR) License Fee Spectrum Charges Pass through (GR – AGR) 2507.20 874.02 9375.81 2450.01 856.90 9739.35 -2.28 % -1.96 % 3.88 % 39108.33 29732.52 38854.65 29115.30 -0.65 % -2.08 %

3.1 3.2 3.3 3.4 3.5

Gross Revenue has declined by 0.65% and AGR declined by 2.08%. Average License fee as % Gross Revenue: 6.31%. Average License fee as % Adjusted Gross Revenue: 8.41 %. Pass Thru charges have shown an increase of 3.88% as against a reduction of 12.53% in the previous quarter. Public sector undertaking’s share to Total GR: 23.09%.

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Table 3.2: Service-wise Gross Revenue, Adjusted Gross Revenue (AGR), Licence Fee and Spectrum Charges (Rs. in Crore)
QE Sep-09 Service Access Providers NLD ILD Others (reported) Total GR 30942.40 4494.39 2128.66 1289.21 38854.65 AGR 24281.05 3535.70 982.09 316.46 29115.30 LF 2159.95 212.14 58.94 18.98 2450.01 Spectrum Charges 854.83 0.00 0.00 2.08 856.90

3.6

Access services contributed 79.64% of the total revenue of telecom services.

Table 3.3: Access Services – Service Provider wise Gross Revenue (Rs in Cr.) Service Provider Aircel Bharti BSNL Etisalat HFCL Idea Loop MTNL Reliance Sistema Shyam Spice Tata Unitech Vodafone Grand Total QE Jun09 897.51 8912.77 6327.65 51.09 37.42 2893.09 166.75 1207.23 3049.18 37.35 308.67 1868.00 12.69 5470.53 31239.93 QE Sep09 955.55 8775.36 6059.30 30.41 36.25 2877.37 158.44 1199.86 3163.39 29.55 303.06 1960.06 12.92 5380.88 30942. % Change (Q-on-Q) 6.47% -1.54% -4.24% -40.48% -3.13% -0.54% -4.98% -0.61% 3.75% -20.88% -1.82% 4.93% 1.81% -1.64% -0.95%

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3.7

In Access services, GR and AGR have declined by 0.95% and 2.41% respectively. License Fee (LF) and Spectrum charges have declined by 2.55% and 1.92% respectively.

Table 3.4: Category-wise share in Access Revenue (GR)

Category

Gross Revenue (Rs in Cr.) 6208 11779 9866 3089 30942

Share %

Metro A B C Total

20.06% 38.07% 31.88% 9.98% 100%

Note: The data for Chennai has been shown under Category A (alongwith TN)

Notes: 1. 2. 3. Source: Figures are un-audited and as submitted by the Operators. The figures have been regrouped for analysis purpose. The Spectrum charges are now reported on “Payment due for the Quarter” basis. However some operators are reporting on payment basis or on estimate basis on projected AGR for next quarter. 4. Tulip IT Services did not furnish data of their NLD and ILD operations, as they were yet to submit the same to the Deptt. of Telecommunications.

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Chapter 4: Quality of Service (QoS)

47

Section A: Quality of Service Performance of Wireless Service Providers
Table 4.1: QoS Summary - Wireless Service
No. of Operators not Meeting the Benchmarks S. No.
Quarter Ending Quarter Ending

Parameters

Benchmark

June, 2009 Out Of 156 (in %)

September, 2009 Out Of 164 (Nos.) Out Of 164 (in %)

Out Of 156 (Nos.) I. 1 (i) (ii) 2 (i) (ii) (iii) 3 Network Related Parameters Network Availability BTSs Accumulated available for service) downtime (not ≤ 2% ≤ 2% -

-

6 28

3.6% 17.1%

Worst affected BTSs due to downtime * Connection (Accessibility) Establishment (within

Call Set-up Success Rate licensee's own network) * SDCCH/ Paging Chl. Congestion TCH Congestion Connection (Retainability) Call Drop Rate

≥ 95% ≤ 1% ≤ 2%

7 12 8

4.49% 7.69% 5.13%

7 9 5

4.2% 5.5% 3.0%

Maintenance Till June’09: (Benchmark