BSNL drives down Indian internet revenue by 12% to Rs 2350 crore in Q1 2011-12

The Internet revenue in India decreased 12.48 percent in
Q1 2011-12 to Rs 2,350 crore against Rs 2,685 crore in Q4 2010-11.

“Total revenue of the internet services as reported
by ISPs was Rs 2,350 crore for the quarter ending June 2011 as compared to Rs
2,685 crore for the quarter ending March 2011, showing a decrease of 12.48
percent. This decline is on account of BSNL,” according to data released
by telecom regulator TRAI.  

Several broadband operators have opted for tariff cuts in
the recent months.

BSNL holds 57.21 percent of the market share with
reported subscriber base of 11.63 million Internet subscribers in Q1 2011-12 as
against 11.32 million in Q4 2010-11.

MTNL is at second position (2.44 million) followed by
Reliance Communications (2.43 million) and Bharti Airtel (1.44 million).

Reliance Communications, which is agressive in the market
with broadband plans, is likely to become the second largest internet player.
Both Reliance Communications and MTNL hold 11.9 percent and 12.01 percent
market share, respectively.

According to TRAI, the average minutes of usage per
subscriber per month during the day time i.e. between 8 a.m to 8 p.m,
substantially increased from 312 in March 2011 to 430 in June 2011 and during
night time i.e. between 8 p.m to 8 a.m., it increased from 83 to 117.  

Total minutes of usage for Internet Telephony recorded
sharp increase from 153.92 million in March 2011 to 191.77 million in June

Internet subscribers increased from 19.67 million in Q4
2010-11 to 20.33 million in Q1 2011-12, registering a quarterly growth rate of
3.33 percent. 

Top 10 ISPs together hold 94.53 percent of the total
Internet subscriber base. 

Number of broadband subscribers increased from 11.89
million in Q4 2010-11 to 12.35 million in Q1 2011-12, registering a quarterly
growth of 3.89 percent and y-o-y growth of 30.37 percent. 

Share of broadband subscription in total Internet
subscription increased from 60.4 percent in Q4 2010-11 to 60.7 percent in Q1

85.72 percent of the broadband subscribers are using
digital subscriber line (DSL) technology. 

The total Internet leased line customers stood at 46,626
in Q1 2011-12 as compared to 45,275 in Q4 2010-11, registering an increase of
about 2.98 percent.  

Maharashtra has the largest Internet (<256 Kbps) and
Broadband (>=256 Kbps) subscriber base in the country. Tamil Nadu is at
second place in internet and broadband subscriber base.  

At the end of June 2011, in 9 out of top 10 states, the
number of broadband subscribers is more than the number of Internet

By Baburajan K

[email protected]