The Indian telecom industry reported robust revenue growth of 5.6% q-q in the Apr-Jun quarter. Revenue growth was driven by increases in revenue per minute with most large operators reporting 4-6% increases in pricing. Year-on-year growth also improved to 9.7% after having slowed to 6.5-7% in last two quarters. Industry revenue growth picked up across circles.
Airtel, Vodafone, Idea Corner 70% Revenue Market Share.
Airtel, Vodafone and Idea combined revenue market share (RMS) crossed 70%, the highest market share of the top three in over five years. Despite India still having 12 telecom operators, industry revenue is consolidating. This quarter, Bharti, Idea and Vodafone gained RMS while RCOM, Tata and Uninor lost share. Uninor’s market share peaked at 2.6% in 1QFY13 but, post the SC directive on licence cancellation, the company has reduced its operations and its national RMS has reduced to 1.7%. The top three operators reported strong market share gains in each of the 22 circles in India, alleviating any concerns on market share (more…)
Indian Telecom Saga is still about 2G Voice as operators strive to bring in the most interior rural parts on to the telecom network. Apart from expanding the number of cell sites, the operators have alternative methods to boost capacity. These include usage of 3G network, fluid ICR agreements and vertical expansion. The following 4 Methodologies are Widely used by Airtel, Vodafone, Idea and Reliance to optimize and enhance the Voice Services in India
Vertical expansion – Cell sites can be expanded vertically by adding (more…)
Qihoo continues to grow its search market share in China and strengthens the industry #2 position with 16-17% search query share by July 2013. We believe Qihoo’s target of 20% search traffic market share by 2013 is on track. Qihoo’s market share of China’s online search market by page views (PV) increased to 16.3% in July 2013 from 10.4% in Dec 2012, according to CNZZ. Qihoo continues to grab page view market share from Baidu, whose share declined from 71.7% in Dec 2012 to 67.7% in July 2013. Qihoo is also building an Intelligent Search Monetization System.
Qihoo believes market share and user experience improvement is more important than monetization in the near term. Management believes Qihoo can change the competition landscape (more…)
According to Baidu, Android daily active users (one DAU representing a connection to the internet at least once daily) saw a net increase of 20m in Q2, up 10% QoQ (vs +56% QoQ in 4Q12 and +27% in 1Q13) despite a 30% QoQ increase in the
sales of Android devices in China. The slow-down in Andriod DAU growth likely owes to: 1) second-time purchases of Android devices and 2) some new Android users having yet to establish an internet connection. The report forecasts that Android DAU will surpass 300mn by year end, (more…)
Airtel network capex (3G, LTE, fibre), spectrum portfolio (3G, LTE) and operating costs reflect its significant investments to strengthen its data offerings. Hence, Airtel should be better positioned to capture a higher share of data revenue. Bharti’s capital employed currently reflects a total investment of Rs205bn in 3G/LTE spectrum in India. With these investments, Airtel covers 81% of the industry revenue.
Idea has bought 3G spectrum in 11 circles which covers only 49% of the industry revenue and doesn’t include the key metro circles of Delhi, Mumbai and Chennai. Idea’s investment in 3G spectrum (more…)