India mobile subscribers rise to more than 1 billion

India's number of mobile-phone subscribers topped 1 billion, becoming the only country after China to cross that milestone.

The number of subscribers in October reached 1.03 billion, up 0.7 per cent from the preceding month, the Telecom Regulatory Authority of India said in a statement on Wednesday.

India's subscriber base has surged over the years to a size that's more than triple the US population, underscoring the country's growing economic influence. Top Indian carrier Bharti Airtel alone has more than 200 million subscribers.

The huge user base is also the most spoiled for choice. As many as 12 operators fight for subscribers in the third-largest Asian economy, driving down tariffs and hurting profits.

The imminent launch of Mukesh Ambani-controlled Reliance Industries 's $15 billion fourth-generation services in early 2016 is set to intensify the competition further.

Concerns about added competition prompted Fitch Ratings to downgrade its 2016 outlook for the Indian phone industry to negative from stable in November. Fitch said it expects only the largest five or six operators to emerge from the likely shake- out in the industry as smaller players exit or get acquired.

Reliance Communications, controlled by Ambani's billionaire younger brother, is in merger talks with smaller rival Aircel and is looking to close its deal for AFK Sistema's Indian wireless unit, in what would be a three-way merger. Idea Cellular, the third biggest carrier, has announced the purchase of airwaves from Videocon Telecommunications.

Bloomberg