Growth in GSM subscribers slows

Gujarat adds 8.86 lakh subscribers in one year

Gujarat has added over 8.86 lakh new GSM cellular subscribers over the past one year, registering a growth of 35 per cent in the GSM cellular subscriber base. But the growth is far behind the national growth of 44 per cent registered in the year ending October 2004.

Nationally, over 1.54 crore new GSM cellular subscribers were added from October 2003 to October 2004.

However, GSM cellular companies operating in the state say that Gujarat being the one of the oldest circles has already achieved much higher growth rate in the first phase compared with any other circle in the country and the growth seems lower because newer circles normally grow faster.

Hutch, one of the leading cellular service operator has maintained its position as the largest GSM cellular service provider in Gujarat with a subscriber base exceeding 10,94, 874 subscriber as of October 2004.

The company added 3,51,504 new subscriber in the past one year, registering a growth of 32 per cent, while Airtel, has been the fastest growing cellular service provider in Gujarat. From a subscriber base of 1,15,780 in October 2003, the company has added new 2,54,033 customers by the end of October 2004, registering a growth of 68.69 per cent.

"The growth rate in the earlier phase has been much higher compared with other circles. We have added largest number of subscriber in the last one year and has maintained our position of being the largest GSM cellular service provider in Gujarat." Sanjoy Mukerji, CEO, Hutch Gujarat told Business Standard.

Idea Cellular has grown by 42 per cent in Gujarat over the past one year by adding 2, 23,808 new subscribers in the past one year, taking the total number of its subscriber base to over 5,32,481 by October 2004.

However, Bharat Sanchar Nigam Ltd (BSNL), has added only 57,319 new subscribers during the past one year, registering a growth of only 11 per cent, which is lowest amongst all GSM cellular companies.

Hutch in Gujarat, is the third circle in the Hutch's fold, after New Delhi and Mumbai, to cross the landmark of over one million subscribers.

Hutch, further plans to enhance it network quality in key locations by increasing cell sites by over 33 per cent by the end of 2004. The company will also focus on augmenting its customer services by adding to the existing 650 mobile recharge zones that already exist across key locations in Gujarat.

Airtel, which launched its services in the state in August 2002, has already captured a market share of more than 14 per cent, which roughly translates into 3,69,813 out of a total 25,17,403 GSM cellular subscribers.

Leading the pack is Hutch, with a 43 per cent share, followed by Idea at over 21 per cent and BSNL at around 21 per cent. AirTel, in its expansion plan, is pumping in more than Rs 400 crore in the next three years to make its presence felt all across the state. BSNL would follow suit.