Just Dial’s Search maintained a strong growth trajectory: searches were up 33% yoy in 1QFY16 with strong growth across business segments. Tier-II/III cities are growing at a very fast pace, supporting 20% growth for the top-5 cities. Steady growth in paid campaigns (ended at 346,000 in 1QFY16 in 15.3 mn listings) and steady pricing helped Just Dial sustain a 25% revenue growth in FY2015. Churn rate remains unchanged at 44% levels given high mortality and shift rate. Just Dial shared internet penetration limiting growth for the search business.
Just Dial aims to launch master app by September 2015 and is investing in back-end infrastructure in order to enhance (more…)
Idea Cellular management was cautious about LTE initially. But a significant and unexpected acceleration in 4G device ecosystem in the past 18 months, increased affordability of LTE handsets and reduction in LTE equipment prices warranted up-fronting of 4G launch to 2016. Initially the launch will be in four circles, including Karnataka and TN where Idea has no 3G, as well as places with high 3G demand. Idea expects LTE to add (more…)
Airtel’s overall voice market share is a better way to analyze the impact of smaller players’ lower tariff strategy on incumbents’ market share (given it is an incumbents across all the circles). The data shows that Airtel has managed to hold on to its share (~30%) despite smaller players’ pricing minutes at a discount (for example, Telenor’s voice RPM is 20% lower v/s Bharti/Idea, adjusting for their ILD/NLD/roaming revenue). Telenor has a 6.5% revenue share in its six circles and managed to gain ~170bps in the last nine quarters. Even Idea has gained ~220bps in 14 of its newer circles despite overall good execution. These 14 circles contribute 60% of the industry revenues and Idea currently has ~10% revenue share in them.
3G volume pick-up has helped incumbents’ (more…)
Telenor / Uninor India turned profitable in Q2FY15 with reported EBITDA of INR 192mn for the first time since starting operations in FY09, although revenue remains flat at INR 11bn QoQ. Traffic grew by 2.9% to 48.7mn minutes, led by healthy subscriber growth of 4.2% partly offset by a 1.3% MOU decline to 414 (unlike Idea’s 2.0% MOU improvement). Voice RPM fell by 1.8% to INR 0.226/minute, lower than Idea’ RPM fall of 2.9%. Management had said the company is a net payer of interconnect charges, due to its lower market share; the reduction in IUC gave a boost to EBITDA and has had a lower impact on RPM. RPM is still at one-third discount to Bharti Airtel & Idea Cellular, and is yet to reach profitability; this is contrary to Consensus view that low RPM may not allow Telenor to reach (more…)
India’s leading Integrated Telco, Airtel is doing the right thing by launching services before competition kicks in and trying to get users on its 4G network to maintain market share. However, Reliance Jio’s entry will increase the competitive intensity, putting pressure on data tariffs.
Reliance Jio Infocomm commercial launch will be around December 2015 as we had predicted, covering 80% of India’s population. Offerings will include voice, high-speed broadband, digital commerce, media and payment services. Over the last few months, Airtel has been ramping up (more…)