SIM Activation Rate Declines in India
In the last 2 months, SIM addition rate has declined significantly from ~18 mn per month to ~13 mn per month and May 2011 additions were lowest since July 2009. One of the reasons could be that operators are consciously reporting only revenue generating subscribers to maintain higher active subs on the network. This decline could also be indicative of urban areas (reported teledensity at 152%) moving towards saturation and growth will now come only from the rural areas (reported teledensity at 33%).
The Tariff War is now Over with new operators getting further marginalised by 2G probe and lack of funding options from local banks. Tata Docomo has raised SMS and STD tariffs and this could hint at a return of pricing power, albeit it is too early to conclude the same. MNP has been a non-event (as expected) and Idea, Vodafone have gained revenue market share.
The Total Mobile Subscriber / SIM base has reached 785 Mn or 78.5 Crore in India. The following Graph Shows the addition of Mobile Subscribers in India in the last 12 months.