ARPU

To the list of jargons used in the telecom field this is one of the few. This acronym stands for "Average Revenue Per User" or "Average Revenue Per Unit".

Now the mobile is in the hands of 50% people and we are entering the third quartile. Most of the people who are going to be added are expected to be from low income group. The countries which are going to contribute to this bulk is China, India , Pakistan and Bangladesh. With the declining ARPU, mobile services can be profitable only if there is a continous high growth at the same time the processes are corrected to make it more efficient and cost effective. recently I read that Aircel has announced plan to provide life time services for new subscribers @ Rs .49 ~= $ 1.2 for existing subscriber @ 249 ~= $6.2. And with the voice call rates declining day by day from where are the operators expecting to earn much of the revenue? How they are planning to be profitable?

The crux of the story is the shift in the contribution to the revenue by the data services.
The revenue percentage for the services provided by the mobile operator are continously shifting from Voice services to the Data services like SMS etc. Data services are more frequently used in the urban areas which is resisting the decline of overall ARPU. In India, Popular serials ,like Indian Idol or Bid2Win, are one of the factors in the rise of revenues from data services, as more and more people are voting/bidding using sms. And these operators are expecting mobile banking to start contributing.

But still it needs to be seen if the data services can offset the decline of ARPU to an inclination.

Indian State's defence Budget Allocation

The allocation for defence is being raised by 10 percent from Rs.96,000 crore (Rs.960 billion) to Rs. One lakh five thousand six hundred crore (Rs.1,056 billion),' Chidambaram said while presenting the budget in the Lok Sabha Friday. The allocation is still below 2.5 percent of the GDP, even as successive parliamentary committees have recommended this be raised to at least three percent if the armed forces are to rapidly modernise...... The reason this is happening is that there is more allocation to other departments like health, etc and the beauratic hurdles in modernising the military........ "India's military expenses at $26.18 billion (Rs 105,600 crores) were less than half of China's expenditure in absolute terms" ...How they are going to protect our country ?


Still I see chinese citing India as threat and hiked spending to nearabout 17.6% compared to 10% by India.... Chinese have developed a massive infrastucture near the Indian borders.....And what was the response of India ...

1. lowering of defense budget (%age of GDP). 2.1% in 2008-09 against 2.17% in 2007-08.....
   
2. Allocating funds for Arunachal that for the southern parts....Reason, chinese may use the same infrastucture for their adavance ment
3. Inability to spend the allocated budget, which is already low.

Even this defence budget of china is not real....the real one is much more....

See the extimations in the table.


The only Thing I wanna say is to the politician to wake-up ....and remove this those bauracratic hurdle....and Modernise the Indian military into a might Military capable of protect our territorial integrity and at the same time punching the countries out who might even dare to do it.