Telecom firms ring in $20 bn in 2005-06

Telecom service providers in the country posted revenues of about $20 billion (Rs 87,962 crore) in 2005-06, a growth of 30 per cent over last year's Rs 67,523 crore according to V&D100 2006, the eleventh annual survey of the Indian communications industry (Vol II) released by Voice & Data "" a magazine on the business of communications.

Though private players contributed to about 85 per cent of the growth, public players brought in Rs 44,371 crore against Rs 43,591 crore by private players.

Cellular services grew at 57 per cent to post revenues of Rs 35,879 crore but this was less than the 63 per cent growth registered in 2004-05. It was, however, enough to take the mobile service revenue beyond the fixed services revenue of Rs 33,715 crore.

BSNL registered a growth of nine per cent and remained the top service provider with a revenue of Rs 39,500 crore, followed by Bharti Airtel at Rs 11, 663 crore. Reliance grew at 109 per cent to clock revenues of Rs 11,288 crore and became the country's third biggest telecom service provider.

Overall, the cellular industry added 38.5 million users in 2005-06. Bharti Airtel was the top cellular service provider, with revenues of Rs 7,928 cr. Tata Teleservices and MTNL also performed well with 345 per cent and 105 per cent growth respectively.

Incidentally, the fixed services industry overcame the decline in revenues suffered in last year and grew at three per cent to cross the 50 million subscriber mark this year. The segment added subscribers at a rate of above 12 per cent. BSNL was the top fixed service provider with a 75 per cent share of the market and revenues of Rs 25,195 crore.

The growth rate of national long distance (NLD) services revenue doubled, from 22 per cent last year to 45 per cent in 2005-06, taking the segment's revenues to Rs 9,017 crore. BSNL dominates this segment with over 75 per cent market share, and grossed Rs 6,792 crore.

The international long distance (ILD) segment posted a growth of almost 90 per cent and revenues of Rs 7,251 crore in FY 2005-06. For the first time, VSNL's share of this segment fell to below 50 per cent, despite the company growing at 72 per cent.

The tables were turned by Reliance, which grew its ILD business at 314 per cent to post ILD revenues of Rs 2,714 crore.

The Internet access business had an almost flat growth rate of 2 per cent and revenues of Rs 1,619 crore.

Broadband subscribers stood at around 14 lakh, at 18.4 per cent of the 7.1 million Internet subscribers and dial-up connections still remained predominant at 63.3 per cent. BSNL was again the top Internet service provider of the country, growing at 3.9 per cent to post revenues of Rs 439 crore.

Both Sify and VSNL declined by 25 per cent and 34 per cent respectively, in terms of revenue. VSNL's subscriber base also declined by 21 per cent.