Select Your Language

INDIAN TELECOM: Jan-11 GSM net adds down 20% MoM at 13.7m; Bharti, Vodafone add >3m

GSM subscriber net adds (ex RCOM and Tata DOCOMO) is 13.7m in Jan-11 vs 17.1m in Dec-10, down 20% MoM on account of decline in net adds for BSNL,

Despite overall decline of 20% MoM, Jan-11 was robust for GSM majors like Bharti, Vodafone (net adds in excess of 3m) and Idea (2.5m).

While it is too early to draw a conclusion, we would watch out for sustained weakness in net adds of new entrants like Uninor and Videocon.

Total GSM subscriber base as reported by COAI (excl RCOM in 14 circles and Tata DOCOMO) is up 3% MoM and 43% YoY to 540m.

While DoT had further extended the 31st Dec-10 deadline for re-verification of existing subscribers to 19th Jan-11, service providers in the North East have been allowed to complete the exercise by 31st Mar-11. Reiterate Buy on Bharti (trades at 7x FY12 and 5.6x FY13 proportionate EV/EBITDA) and Idea (trades at 6.8x FY12 and 4.9x FY13 EV/EBITDA).