Mobile telephone subscriber numbers have grown at a tremendous pace in the past three years — from 35.6 million in March 2004 to 165.10 million in March 2007.
NEW DELHI: Mobile telephone subscriber numbers have grown at a tremendous pace in the past three years — from 35.6 million in March 2004 to 165.10 million in March 2007, according to industry data.
As on July-end, it stood at over 193 million. But when it comes to growth in marketshare, only Bharti, Bharat Sanchar Nigam Ltd (BSNL) and Tata Teleservices (TTSL) have shown any significant increase from March 2004 to 2007, when both global system for mobile communications (GSM) and code division multiple access (CDMA) technologies are taken into account.
From March 2004 to March 2007, Bharti’s marketshare has gone up from 19.06%, while BSNL’s has increased from 17.44% to 18.77%.
Tata Teleservices has also shown a significant jump from a marketshare of 3.53% in March 2004 to 9.7% in March 2007, as per data provided by the Telecom Regulatory Authority of India (TRAI).
Another operator showing an uptrend in marketshare is Aircel, which has grown from 2.88% to 3.34% from March 2004 to 2007.
Reliance’s marketshare (GSM and CDMA together) has dropped from 21.81% in March 2004 to 16.96% in March 2007. Among other major players whose marketshares have dipped through the years include Hutch Essar (now Vodafone Essar) from 17.03% in March 2004 to 16.01% in March 2007, and Idea from 10.45% to 8.49% during these years.
While Bharti is the market leader now, the number one mobile telephony position was held by the Reliance group (GSM and CDMA together) till early last year.
The ranking, as of March 2007, is Bharti on top at 22.49% marketshare, followed by BSNL at 18.77%, Reliance at 16.96%, Hutch Essar at 16.01%, Tata Tele at 9.7% and Idea at 8.49%, among the large operators. However, for the past few months, the marketshare of Hutch Essar has been larger than BSNL’s.
Way back in March 2004, the hierarchy was quite different among the mobile players. Reliance was the leader then with 21.81% marketshare, followed by Bharti at 19.06%, BSNL at 17.44%, Hutch Essar at 17.03%, Idea at 10.45%, and Tata Tele at 3.53%.
While Bharti’s marketshare has increased overall, from March 2004 to 2007, its marketshare has declined in as many as eight out of the total 23 circles during this period.
Bharti’s marketshare increased in the remaining 15 circles. As for BSNL, which operates in 21 circles, it declined in 15 circles and rose in only six. Reliance has suffered the most as its market share dropped in 20 out of the 23 circles, and gained in only three.
Hutch Essar, which functions in 16 circles, has gained marketshare in nine and lost in seven. Idea gained in four and lost in seven. Tata Teleservices has shown the most impressive growth, as it has gained marketshare in 19 circles, out of a total of 20 that it operates in. Aircel, too, has increased marketshare in eight circles and lost in one.
The telecom regulator evaluated the market share trend of mobile operators from 2004 to 2007, to arrive at its recent recommendation on what constitutes “significant market power” after merger and consolidation of players.
While the current threshold of the marketshare cap is 67% in a merged entity, Trai has recommended that it should be brought down to 40% in terms of both subscriber numbers and also gross revenue.
International definition of market monopoly varies from 20% to 50%. India has among the highest threshold of market cap for a merged entity at 67%. While in Brazil, no merged entity can have a market share of over 20%. In the UK and the US, it is 25%, Canada 35%, Australia, New Zealand, Singapore and Hong Kong 40%. In the European Union, it’s 50%.
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