Supreme Court on 2G: new mobile operators post Rs 1700 crore Q2 2011 income

By Telecom Lead Team: The revenue of
the new licences holders in the 2G spectrum case is around Rs 1,700 crore in Q2


The current
uncertainty will impact the revenue of license holders such as Uninor, Loop,
Sistema (MTS), Etisalat, S Tel, Videocon, Idea Cellular and TTSL in coming


The Supreme
Court scrapped 2G licences of Tata Teleservices (3 circles), Videocon (21),
Uninor (22), Idea Cellular (9), S Tel (6), Swan (13), Etisalalt Telecom (15),
Loop (21) and MTS (21).


The total
revenues of these operators were Rs 1693.4 crore for the second quarter ended
September 30, 2011. It includes four percent of the total revenue earned by
Idea Cellular.


operators contributed around 3.39 percent of the total revenue earned by all
the network operators (excluding TTSL) in Q2 FY 2011-12.


In the second
quarter of FY 2011-12, Idea Cellular posted revenues of Rs 5360 crore, Tata
Teleservices Rs 4163 crore; Uninor Rs 651 crore; MTS Rs 328 crore; Loop Rs 177
crore; Videocon Rs 163 crore; S Tel Rs 139 crore and Etisalat Rs 21 crore. Out
of this, Idea Cellular’s income will be affected in 7 circles, according to the
company, while TTSL will be affected in 3 circles.


Despite the 2G license
cancellations, there may not be a huge disruption in telecom services as the
number of licenses granted post 2008 make up only 5 percent of the subscriber
base in India. Currently, India has 894 million mobile subscribers.


With 5% marketshare, license cancellation will not affect
mobile services significantly


other license losers, Uninor’s market share is 5.68 percent with 36,306,865
subscribers and Videocon’s market share is 0.85 percent with 5,442,883


Tel has a market share of 0.55 percent with 3,549,381 users. Loop Mobile has
3,236,381 subscribers with 0.51 percent market share. Etisalat’s market share
is 0.26 percent with 1,670,086 subscribers.


MTS India has around 15.01 million subscribers, the subscribers of Tata
Teleservices are 83.49 million. Idea Cellular in these affected service areas
has over 6 million subscribers.


According to TRAI chairman,
the regulator will take proper action during the next 4 months to settle the
issue. Since consumers will have opportunities to use mobile number portability
to migrate to other telecom service providers, the Supreme Court decision will
not affect the mobile users.


[email protected]