The Indian telecom services industry revenues grew by 21.3% to touch Rs. 130,561 crore in 2007-08 as it its subscriber base grew by 66% to add 100 million new subscribers, according to CyberMedia’s Voice&Data annual survey of the telecom industry.

The revenues of cellular, fixed line, National Long Distance (NLD), International Long Distance (ILD), Broadband, VSAT and radio trunking were added to calculate the size of the Indian telecom services industry.Cellular revenue contributed a major chunk of telecom services revenue followed by fixed line and ILD. According to the 13th annual V&D100 survey, around 59% of the telecom services revenue came from cellular business that touched Rs. 76,608 crore in FY 2007-08. This represents a growth of over 36.4% over Rs. 56,183 crore earned in the previous year.

Significantly, the majority of new subscribers are now coming from towns and villages with populations of less than 20,000. The mobile network now covers over half of the nearly 6,00,000 towns and villages. The mobile services can now be bought from nearly a million outlets—a number that far exceeds the number of FMCG or even the postal outlets. Expansion into rural areas, lowering entry price of owning a handset through attractive offers and customer retention efforts helped ramp up subscriber-base and revenues.

Fixed line revenues drop 11.6%, ILD revenues flat on growing volumes

The second biggest contributor to the telecom services business was the fixed line contributing 20.4% to the entire services business. The fixed line business, however, recorded a de growth of 11.6% to reach Rs. 26,692 crore in FY 2007-08 from Rs. 30,190 crore in FY 2006-07.

ILD, on the other hand, contributed around 8.8% of the telecom services to touch revenues of Rs. 11,532 crore in the last financial year, up from Rs. 11,506 crore in FY 2006-07. NLD segment grew at 35.4% to contribute about 7.5% to the telecom services business with revenue of Rs. 9,732 crore in FY 2007-08 up from Rs. 7,186 crore in FY 2006-07.

Broadband subscribers up 56% to 3.9 mn, revenue up 163% to Rs. 5,359 cr

Broadband showed a phenomenal growth of 162.7% to touch the revenue of Rs. 5,359 crore in FY 2007-08 from Rs. 2,040 crore in FY 2006-07. Though the revenue from broadband saw a robust growth, this is not true for the subscriber base. The subscriber base grew from 2.5 mn in FY 2006-07 to 3.9 mn in FY 2007-08. VSAT and Radio Trunking together contributed 0.5% to the telecom services revenue.

A booming economy, easing of entry barriers to mobile access and lowering of tariffs fuelled the growth in a year when the country added over 104 million new subscribers making India the second fastest growing telecom market in the world. Recent government policies aimed at creating affordable connectivity for common man across the country also served as a catalyst.

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