Telecom spectrum more an issue in metros: Study
Non-availability of spectrum, though a problem in metros, may not be an issue in smaller cities that are high-growth areas for telecom.
By PTI |
MUMBAI: Non-availability of spectrum, though a problem in metros, may not be an issue in smaller cities that are high-growth areas for telecom, a Morgan Stanley study has said.
"We believe spectrum is a bottleneck for operators, however, it is more of an issue in the metros, and less so in high growth areas such as Class B and Class C circles where we believe most of the incremental growth would come from," the study said.
The estimated average penetration in the metros is 66 per cent as compared to 17.8 per cent for India, 21 per cent for Class A, 15 per cent for Class B and 9 per cent for Class C circles.
According to the study, the subscriber base in metros may go down.
"Metros contributed 31 per cent of the subscriber base in FY-04, but it has gone down to 18 per cent in August 2007." it said.
"We estimate it to reduce to 14 per cent in FY-10. We estimate that during FY 2008-10, Class C would account for 17 per cent, whereas Class B would account for 46 per cent and Class A 30 per cent," it said.
"Metros would account for only 9 per cent of the incremental net adds in our estimate," the study said.
Existing operators can "easily double" their subscriber base without needing additional spectrum, Morgan Stanley said quoting TRAI's recommendations.
"We believe spectrum is a bottleneck for operators, however, it is more of an issue in the metros, and less so in high growth areas such as Class B and Class C circles where we believe most of the incremental growth would come from," the study said.
The estimated average penetration in the metros is 66 per cent as compared to 17.8 per cent for India, 21 per cent for Class A, 15 per cent for Class B and 9 per cent for Class C circles.
According to the study, the subscriber base in metros may go down.
"Metros contributed 31 per cent of the subscriber base in FY-04, but it has gone down to 18 per cent in August 2007." it said.
"We estimate it to reduce to 14 per cent in FY-10. We estimate that during FY 2008-10, Class C would account for 17 per cent, whereas Class B would account for 46 per cent and Class A 30 per cent," it said.
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"Metros would account for only 9 per cent of the incremental net adds in our estimate," the study said.
Existing operators can "easily double" their subscriber base without needing additional spectrum, Morgan Stanley said quoting TRAI's recommendations.
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