The Average Revenue Per User has been consistently declining in both the CDMA and GSM Wireless segments in the World’s second largest and cheapest cellular market.
Reliance Communications saw a decline in ARPU [Average Revenue Per User] from 375.0 to mere Rs 317 at the end of Fy2008[ March-8]. QoQ figures – 375.0 361.0 339.0 317.0 However, the company has been able to maintain Average Revenue per Minute [ARPM] consistently around Rs 0.75 QoQ Figures – 0.74 0.74 0.76 0.74 We cannot directly take into consideration the Average Minutes of Usage per User because Reliance has many unlimited calling plans on its own network something not provided by other wireless service providers.
Bharti Airtel also witnessed similar decline in ARPU. QoQ figures Rs 390 366 358 357. Surprisingly, the ARPM is lower at Bharti Airtel. QoQ Figures – 0.82 0.78 0.76 0.70
Amongst the listed entities, Idea Cellular had the worst ARPU. QoQ Figures Rs320 288 279 287. Idea’s ARPM is comparable to Bharti Airtel – QoQ Figures – 0.84 0.80 0.74 0.70
With the entry of couple of more service providers, existing operators have vowed to decrease prices further to compete intensely, but looking at it in other way, it is to wipe out these brave souls.