Indian Telecom Industry witnesses first ever subscriber slowdown

Wednesday, 12 September 2012

Seems, the coming period will be tough for the telecom industry. According to a recent report generated by the Telecom Regulatory Authority of India (TRAI), Indian telecom industry has recorded around 944.81 million subscriptions in July, while the subscriptions in the month of June were 965.52 million.

If reports are to be believed, the latest slowdown is the first ever telecom subscriber number decline witnessed in India.

According to an estimate, Bharti and Idea’s subscription base fell off by about 2 million each in August to 186.8 million and 115.2 million respectively. As far as Vodafone is concerned, it recorded a dip of over 1 million to end the month with around 154 million.

Market experts added, the latest slowdown in the subscriber count indicates trouble for the telecom industry which is already struggling with lower profit margins due to the arbitrary spectrum bidding, the constant policy amendments, competitive pricing etc.

Market watchers further added, Indian Government should stop the complexity in the business and come up with a clean and transparent spectrum allocation process with effective regulations.