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June 15, 2001
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Indian mobile industry gallops 90 per cent in May

India's cellular phone industry kept up its run of strong growth in May with its subscriber base growing 89.67 per cent year-on-year, data released on Friday by an industry body showed.

The Cellular Operators Association of India figures showed that subscriber base grew to touch 3.87 million in May, up from 2.04 million at the end of the same month last year.

In April, subscriber base expanded 88.7 per cent year-on-year to 3.703 million.

The six-year-old industry added 168,680 new subscribers in May, but analysts say the numbers are still way too small given India's billion-plus population. Indeed, the cellular subscriber base in India is still a fraction of China's nearly 87 million and Japan's 60 million mobile users."

The cellular industry association data showed that telecom markets with the lowest subscriber potential -- classified as "C" circles -- grew the fastest.

Subscriber base in "C" circles ballooned 157 per cent while in the lucrative "metro" market the subscriber base grew nearly 73 per cent.

India's Department of Telecommunications has categorised the country's telecoms market as "metro" and "A", "B" and "C" telecom circles, based on subscriber potential.

The subscriber base in "A" circles grew 104.77 per cent while the "B" circle grew 92.58 per cent.

At the end of May this year, the metro circles had 1.47 million subscribers, "A" circles 1.28 million, "B" circles 990,677 and "C" circles 126,754 subscribers, the data showed.

Bharti Cellular, one of the three cellular operators in New Delhi, had the largest number of customers in any single city with 345,386 subscribers. It added 10,175 new subscribers in May.

State-run Mahanagar Telephone Nigam Ltd, the latest entrant into the cellular business, lost 196 subscribers in New Delhi in May.

The firm, a fixed-line operator which launched cellular services earlier this year, had 9,884 subscribers at the end of May in New Delhi and another 8,590 in Bombay.

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