Multiple SIMS distort the mobile numbers
02-03-2010
India's mobile users upto 40% lower than official numbers suggest, says FT
India added nearly 20m mobile subscribers in January to bring the total to more than 545m. But are the statistics accurate? A report in FT.com says the number of Indian mobile phone users is up to 40 per cent lower than official numbers suggest.
The report, which goes by industry analyst estimates, comments: "[this raises] questions over the true extent of India's telecoms boom and the valuations of its wireless operators"
The problem is that "many Indian users are buying multiple Sim cards, a large number of which are "lifetime" cards that are considered to be active even when they are no longer being used"
The hypercompetition in the market, with up to 12 telcos competing in some regions, has led to a price war, encouraging users to habitually switch operators in search of the best deal.
The lack of number portability in India, which prevents customers from keeping the same phone number while switching operators, means subscribers instead buy new Sim cards. The trend has been accelerated by the introduction last year of phones capable of handling more than one Sim.
"Analysts say some newer operators are also sending Sims to retailers that have been activated even before they are sold to end users".
Syed Safawi, president of wireless at Reliance Communications, estimates the ratio of Sims per actual user in India at about 1.25, according to the FT report. "But analysts believe that once active but unused Sims and activated but unsold Sims are taken into account, the genuine number of end users in India at present could be up to 40 per cent lower than the government's figures". "This level of duplication in the figures would be double the average of mature markets, but similar to the situation in some rapidly growing emerging markets".
Based on report in FT.com
India added nearly 20m mobile subscribers in January to bring the total to more than 545m. But are the statistics accurate? A report in FT.com says the number of Indian mobile phone users is up to 40 per cent lower than official numbers suggest.
The report, which goes by industry analyst estimates, comments: "[this raises] questions over the true extent of India's telecoms boom and the valuations of its wireless operators"
The problem is that "many Indian users are buying multiple Sim cards, a large number of which are "lifetime" cards that are considered to be active even when they are no longer being used"
The hypercompetition in the market, with up to 12 telcos competing in some regions, has led to a price war, encouraging users to habitually switch operators in search of the best deal.
The lack of number portability in India, which prevents customers from keeping the same phone number while switching operators, means subscribers instead buy new Sim cards. The trend has been accelerated by the introduction last year of phones capable of handling more than one Sim.
"Analysts say some newer operators are also sending Sims to retailers that have been activated even before they are sold to end users".
Syed Safawi, president of wireless at Reliance Communications, estimates the ratio of Sims per actual user in India at about 1.25, according to the FT report. "But analysts believe that once active but unused Sims and activated but unsold Sims are taken into account, the genuine number of end users in India at present could be up to 40 per cent lower than the government's figures". "This level of duplication in the figures would be double the average of mature markets, but similar to the situation in some rapidly growing emerging markets".
Based on report in FT.com
