Abstract
As one of the fastest growing wireless markets in the world, the wireless
subscriber base in India has witnessed exponential growth since the year 2000.
The total subscriber number is expected to reach 265.2 million and generate
total revenue of US$17.5 billion by 2010.
However, the ARPU levels have declined significantly and the downward trend in
ARPU levels is expected to continue. The ARPU is expected to decline from
US$7.6 in 2005 to US$5.6 in 2010, due to extensive competition and lower
disposable income of new users.
This report is to analyze the profitability of the players in this market with
the current information we have. We have put together the cost structure for
mobile operators and tried to find out whether this low APRU model could lead
to the profitability of these operators.
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