Norms Proposed for Determining Indian Mobile Subscriber Figures
July 08, 2005
TRAI (Telecom Regulatory Authority of India) has proposed stringent norms for reporting of subscriber figures by mobile phone companies. The following items are to be excluded from subscriber numbers:
- Connections that have not generated revenue for more than 30 days (currently, mobile phone operators have a 90-day grace period for pre-paid card users)
- Post-paid subscribers who have been disconnected for non-payment of bills
- Free connections given to employees and business partners
- SIM-cards in the hands of dealers and distributors
TRAI said these norms will have the goal of giving a more realistic picture of the mobile subscriber base. If the norms were to be implemented, subscriber figures will fall by at least 5% or 6%. This will have an influence on the valuation of mobile phone companies and it will have an impact on spectrum allocation, as this is based on subscriber numbers. TRAI is seeking input from mobile phone companies, and so far most of them have expressed their opposition to the norms.