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CDMA players cry foul over regulator's claim on ARPU
By siliconindia
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99 a month by TRAI (Telecom Regulatory Authority of India), they feel that it should be close to 200 if the revenue from limited mobility and data services is included.
"TRAI's key performance indicators report for the quarter ended March 2009, says the CDMA segment's ARPU is just 99 while that for GSM is 221. This puzzled us, as the CDMA ARPU by companies in the financial reporting to stock exchanges is much higher, relative to GSM ARPU. A closer scrutiny of the KPI report, in conjunction with the financial report prepared by TRAI, shows that TRAI's method of calculation leaves out the most lucrative subscribers and is therefore misleading," states a report from IIFL, the institutional equities division of India Infoline.
Industry estimates reveals that, if revenue from fixed wireless mobile services is included, the ARPU should be around 150 and if income from data services is also added, this should be comparable to the ARPUs earned by GSM players.
"Data revenue is a significant part of income earned by CDMA players. TRAI's method of calculating by including just the voice revenue from pure mobile users is not correct. There are 18 million fixed wireless subscribers whose ARPU is over 260. TRAI has removed the highest ARPU subscribers in calculating the number for CDMA players. We have sought clarifications from the regulator," said a CDMA player.
ARPU has been calculated based on a total amount of 2,180 crore for two CDMA players, Reliance Communications and Tata Teleservices. However if income from WLL (Wireless Local Loop) mobility is included, the total adjusted gross revenue would reach around 3,600 crore.