Telecom services revenue at Rs 87,962; ILD up 90% from -12% in FY05

New Delhi, July 10 (UNI) Telecom service providers in India today posted revenues of Rs 87,962 crore for the year ending March 2006, up 30 per cent over Rs 67,523 for the same period last year, with private players contributing 85 per cent of the growth.

Public players reported revenues of Rs 44,371 crore, as against the private players, whose revenues stood at Rs 43,591 crore, thereby missing the target by Rs 780 crore.

With a growth rate of 9 per cent and revenues of Rs 39,500 crore, BSNL remained the top service provider. Its closest competitor, Bharti Airtel brought in Rs 11, 663 crore, growing at 46 per cent, while Reliance grew 109 per cent to clock revenues of Rs 11,288 crore, becoming India's third biggest telecom service provider, according to a Vice&Data 100 2006 survey of the Indian Communications Industry.

''The fast-growing market share and revenues of private players, despite steep tariffs drops, are proof that telecom liberalisation was a step in the right direction,'' Voice&Data Editor Ibrahim Ahmad said.

International Long Distance (ILD) services in India turned around this year, as they reported an almost 90 per cent growth and revenues of Rs 7,251 crore in FY 2005-06, as against a minus 12 per cent growth last year.

For the first time, VSNL's share of this market segment fell to below 50 pwe cent, despite the company growing at 72 per cent.

The phenomenal growth in this area can be attributed to Reliance, which grew its ILD business at 314 per cent to post ILD revenues of Rs 2,714 crore.

Cellular services for FY '06 grew 57 per cent to post revenues of Rs 35,879 crore, which although less than the 63 per cent growth reported last year, was enough to take the mobile service revenue beyond that from fixed services, the survey said.

The other highpoints of the industry were the expansion of networks in new areas, consolidations, and the operators offering virtually every customer segment a personalised tariff structure.

Overall, the cellular industry added 38.5 million users in FY 2005-06.

Bharti Airtel was the top cellular service provider, with revenues of Rs 7,928 crore, while Tata Teleservices and MTNL were star performers with a 345 per cent and 105 per cent growth respectively.

The fixed services industry grew 3 per cent to cross the 50 million subscriber mark in FY 2005-06, overcoming the decline in revenues suffered last fiscal, with BSNL retaining the top slot with a 75 per cent share of the market and revenues of Rs 25,195 crore..

The segment added subscribers at the rate of above 12 per cent, which in the wake of the mobile revolution and mass surrender of wired phones, is impressive.

IPTV and broadband are expected to drive usage and revenues in the future.

The revenue growth rate of National Long Distance (NLD) doubled, from 22 per cent last fiscal to 45 per cent in 2005-06, taking the segment's revenues to Rs 9,017 crore. The predominant position of BSNL in NLD services remained unchallenged, with its 75 per cent market share growing at 35 per cent. BSNL grossed Rs 6,792 crore.

However, most of the other players are growing higher than the market average and many new players are expected to enter the fray.

Internet and broadband, had an almost flat growth rate of 2 per cent and revenues of Rs 1,619 crore in FY 2005-06, from the mere 1 per cent growth rate last year.

Broadband subscribers stood at around 14 lakh, not even halfway to the target of 30 lakh, and were 18.4 per cent of the 7.1 million Internet subscribers. Dial-up connections still remained a predominant 63.3 per cent, as compared to the 84 per cent last year.

BSNL was again the top ISP of the country, growing at 3.9 per cent to post revenues of Rs 439 crore. Both Sify and VSNL declined by 25 per cent and 34 per cent, in terms of revenue, respectively.

VSNL's subscriber base also declined by 21 per cent.

The V&D100 annual survey is the most comprehensive of the Indian telecom services and equipment industry.

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