In contrast to the southern region, which comprises four telecom circles – Andhra Pradesh, Karnataka, Tamil Nadu and Kerala – the northern region has a number of circles with diverse profiles. On the one hand, there is Delhi, the country’s highest telecom revenue generating circle, which contributes 8.39 per cent of the total gross revenues, and on the other is Himachal Pradesh, which contributes a mere 0.7 per cent. Among the others, Punjab, Uttar Pradesh (East), Uttar Pradesh (West) and Rajasthan contribute 4 to 6 per cent each, while Haryana and Jammu & Kashmir contribute about 2 per cent and 0.9 per cent respectively.

The region has diverse geographies, multiple languages and varied per capita incomes. While Himachal Pradesh, Jammu & Kashmir and Uttarakhand have hilly terrain, Rajasthan is mostly a desert area. In terms of per capita income, Delhi tops the chart in the north at Rs 135,814, way above the national average of Rs 54,835 (2010-11 figures). At Rs 26,051, Uttar Pradesh (West) has the lowest per capita income in the northern region and the second lowest in the country, next only to Bihar.

Regional analysis

As of March 2011, the northern region had the highest subscriber base in the country with 253.43 million users. However, on the revenue front, it loses out to the southern region. Although the northern region does face some challenges, it is still better off as compared to the Naxal-affected areas of the eastern region.

As far as telecom service providers are concerned, Bharti airtel and Vodafone Essar enjoy a dominant position in the north while Aircel has a strong foothold in the southern region.

Circle analysis

Delhi: In 2009, the capital became the first circle to record 100 per cent telecom penetration. The mobile subscriber base for the circle grew 37.2 per cent during 2010-11, slightly higher than the national average of 38.9 per cent. In March 2011, the subscriber base for the circle stood at 38.81 million and the wireless teledensity at 231.7 per cent.

Currently nine players are operating in the Delhi circle. Of these, Bharti airtel leads with a subscriber market share of 20.56 per cent. It is followed closely by Vodafone Essar with a 18.73 per cent share. According to the Telecom Regulatory Authority of India (TRAI), Delhi registered 839,471 mobile number portability (MNP) requests as of end-July 2011.

3G services have been launched by all the players who hold licences in this circle. Operators who failed to obtain 3G spectrum have entered into intra-circle roaming arrangements with other operators to reach out to the capital’s high-end customers. Delhi generated a gross revenue of Rs 24.19 billion for the quarter ended December 2010, the highest amongst all circles and, therefore, viewed as the most lucrative in terms of launching 3G services.

Jammu & Kashmir: Bharat Sanchar Nigam Limited (BSNL) led the entry of mobile services in Jammu & Kashmir in August 2003. Private sector players followed only in October 2004, with Bharti airtel launching its services in 46 towns. At present, there are seven players operating in the circle. Of these, Bharti airtel holds the maximum share of 34.26 per cent in terms of subscriber numbers, as of March 2011. It is followed by Aircel with 30.26 per cent share. The total subscriber base stood at 5.75 million as of March 2011, the lowest in the northern region. The circle still has a long way to go as the year-on-year subscriber growth was just 3.7 per cent as of end-March 2011, much lower than the national average of 38.89 per cent for the same period. The region’s teledensity stood at 48.21 per cent as of January 2011.

The slow growth of telecom services in the circle can be attributed to a number of challenges the circle faces in terms of high infrastructure and operating costs owing to difficult terrain, inadequate last mile connectivity and security concerns. Further, the current licence regime does not allow installation of telecom infrastructure within 10 km of the international border. This limits the reach of operators as a large portion of the population resides in towns near the borders.

All the four operators who won 3G spectrum in the circle have initiated service rollout in Jammu & Kashmir. The circle recorded the lowest number of MNP requests (3,361 as of July 2011) among all circles. Although mobile services began late in the state, it has significant growth potential, given the fact that it registered the highest CDMA ARPU growth rate of 122.22 per cent during December 2009 to March 2011.

Himachal Pradesh: The wireless subscriber base for Himachal Pradesh stood at 7.2 million as of March 2011, recording a year-on-year growth of 44.7 per cent, significantly higher than the national average of 38.9 per cent. The high cost of digging through rocky terrain for network rollout is one of the major barriers to telecom development in this circle. This has also resulted in lower revenues.

As of July 2011, Himachal Pradesh registered 65,361 MNP requests, the second lowest after Jammu & Kashmir. There are a total of nine players operating in the circle, of which three offer CDMA services in addition to GSM. BSNL had the highest market share of 23.16 per cent as of March 2011, followed closely by Bharti airtel with 22.6 per cent. All major players (except S Tel), which won 3G spectrum in the circle have launched services in the circle.

Punjab: Punjab recorded a 43.1 per cent growth during fiscal 2010-11, higher than the national average of 38.9 per cent. The subscriber base stood at 28.75 million as of March 2011. At present, 12 operators offer services in the circle. Of these, Bharti airtel leads in terms of subscriber numbers with a market share of 21.6 per cent, based on March 2011 figures. BSNL follows with 15.93 per cent share. All the players holding 3G spectrum in the circle have launched services. Punjab has a high uptake of value-added services and therefore offers good potential for 3G adoption. The MNP status at the end of July 2011 was 701,465 requests.

Rajasthan: The mobile subscriber base witnessed a year-on-year growth of 27.7 per cent as of end-March 2011. The teledensity in the state stood at 62.8 per cent as of March 2011. As of March 2011, the subscriber base for the circle stood at 43.1 million. At present, 11 operators are offering services in the circle. Of these, three are providing 3G services too. Bharti airtel had the maximum market share of 28.44 per cent in terms of subscriber numbers as of March 2011. It was followed by Vodafone Essar, which held 19.77 per cent share. Rajasthan received 1,109,489 MNP requests as of July 2011, the maximum amongst all the northern circles.

Uttar Pradesh (East): At 63.67 million, Uttar Pradesh (East) had the largest subscriber base amongst all its northern counterparts as of March 2011. The teledensity in the circle stood at 51.55 per cent in January 2011. Currently, there are 11 service providers operating in the circle. According to the subscriber data at end-March 2011, Vodafone Essar had the highest market share at 21.04 per cent followed by Bharti airtel at 18.92 per cent. Three operators have won 3G spectrum in the circle and services have been rolled out in the major towns and cities. The other companies have signed intra-circle roaming agreements to offer 3G services in the circle. The MNP request status stands at 739,044 as of end-July 2011.

Uttar Pradesh (West): Uttar Pradesh (West) was the second largest telecom circle in the northern region with a subscriber base of 45.76 million as of March 2011. Currently, there are 11 players operating in the circle. Of these, three hold 3G spectrum in the circle and have launched services across various towns and cities. The other companies have signed intra-circle roaming agreements to offer 3G services in the circle. Uttar Pradesh (West) registered considerably higher growth during fiscal year 2010-11 than the national average. The MNP requests for this circle stood at 914,978 at end-July 2011.

Haryana: With a subscriber base of 20.38 million as of March 2011, Haryana has the third lowest subscriber base in the northern region. Currently, there are 11 service providers offering services in the circle. Of these, three players have won 3G licences for the circle. However, 3G services are not limited to these players as other operators like Bharti airtel are offering them through intra-circle roaming agreements. As of March 2011, Vodafone Essar was leading the circle in terms of subscriber numbers.