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June 8, 2001
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Money > Business Headlines > Report June 8, 2001 |
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Cell user growth rates dip despite tariff cutsThomas K Thomas Cellular subscriber growth rates in Bombay and Delhi have declined in the last few months despite tariff cuts by the mobile service providers. Bharti Cellular in Delhi managed to lure only 6,500 subscribers between March and April, following a reduction in airtime charges by about 50 per cent. In contrast, the company's subscriber base had jumped by about 20,000 users in the capital between January and February, as per COAI figures. BPL Mobile in Bombay saw its subscriber base going down by over 14,000 between February and March, from 272,000 to 258.000. MTNL, which had started the price war by lowering tariffs from Rs 4 to 2.70 has also seen a drop in its subscriber base, from 10,211 in March to 10,090 in April. Essar's subscriber growth has increased only marginally in the same period. Mobile operators now find themselves in a difficult situation as they were expecting the numbers to compensate for the tariff cuts. With competition forcing another round of tariff cuts, cellular operators are banking on a trend reversal in the next few months. A section of the industry attributes the dip in growth rates to the general slowdown in the economy and consumers' unwillingness to spend. Powered by YOU MAY ALSO WANT TO READ:
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