There’s little to cheer about statistics of Wireless Industry globally in Q1 2010. Despite registering robust growth in subscriber additions, revenues of telcos remain flat. India, as usual, continued to register highest wireless subscriber growth on quarterly basis, while broadband subscriber growth in the country also on upswing.

Let’s go through the key stats of the report, published by Telegeography:-

  • Wireless subscribers grew by 161 million in the first three months of 2010, up 3.5{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} on the end of 2009.
  • During the three months ended on 31 March, 175 million new subscribers were added, out of which 70{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} came from Asia-Pacific region.
  • Fixed broadband subscriber grew by 14 million in Q1, up 2.8{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} from end of 2009.
  • Revenue from top 30 service providers- $300 billion, down 2.1{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} on Q4 2009 but up 1.1{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} on Q1 2009.
  • China & India accounted 54{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} of total subscriber additions in Q1 2010. Apart from these two, Indonesia & Vietnam are other two Asian countries who are among top six wireless growth markets. Brazil & US are only two non-Asian countries in top 6.
  • Asia-Pacific accounted for 41{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} of total broadband subscriber additions in Q1, while W.Europe & N.America, each accounted for 16{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} of broadband subscriber addition.
  • The 1.1{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} annual revenue growth includes the positive impact of M&A. But according to the report, if you take away M&A, revenue remained flat.

Report also highlighted the fact that, though India registered 50{af589cdba9d77786c8c861317dbad60bba1e2ebbf56e2ffab874a1b59fde9ce3} growth in Wireless subscribers base over last 12 months, there is no single Indian Telecom Operator in top 30 service providers by revenue, reason being, fierce tariff wars, which resulted into revenue loss.

The conclusion drawn at the end was significant: Unless service providers compete on factors other than price, revenues are going to remain flat.

Telcos, are you listening?

Tags : 3GChinaGlobalIndiaMerger-AcquisitionRevenueTelecomFactsTelecomStatsWirelessStats