GSM operators in India post 5.7% increase in Q1 revenues
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GSM operators in India post 5.7% increase in Q1 revenues

By agencies   |   Monday, 22 August 2005, 07:00 Hrs
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MUMBAI: GSM mobile operators have reported a 5.7 percent rise in revenues in the first quarter of the current fiscal year.

The adjusted gross revenue increased from 3.5 trillion ($80 billion) for the quarter ended March, to 3.7 trillion ($84 billion) for the quarter ended June.

The first quarter also witnessed a 43 percent rise in revenues on a year-on-year basis. However, the ARPU has declined by 2.9 percent, or about 11 ($0.25) per subscriber, from 401 ($9.2) for the quarter ending March, to 390 ($8.9) for the quarter ending June. During the previous financial year, the ARPU had remained stable at about 400 ($9).

The lower ARPU is a result of increasing competition among players who are expanding their networks. "While GSM services are becoming increasingly affordable, a fall in ARPU raises serious concerns regarding the ability of the business to fund the requirements for network expansion and growth," TV Ramachandran, director general of the Cellular Operators Association of India said.

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