Reliance Jio’s free pricing blitzkrieg has triggered the largest round of consolidation in the telecom industry. Vodafone and Idea Cellular are reportedly in talks for what could possibly be an all share merger deal; Vodafone indicated that its 42% stake in Indus is excluded from any potential transaction. Such an agreement would combine the 2nd and 3rd largest domestic telco operators, commanding ~40% revenue and 35% subscriber market share, ahead of Airtel’s 31% revenue and (more…)
Idea Cellular pure wireless services revenue growth accelerated to 21% yoy, a combination of 17% yoy voice volume growth (to 162.5 bn minutes; 3.5% ahead of expectations; down 1.7% qoq) and 3% blended yoy RPM improvement (to 45.9 paise / minute; 1.6% below expectations). Voice RPM declined 2.4% qoq and 3.1% yoy to 36.2 paise/min IDEA added 4.6mn subs in 2Q taking the total subscribers to 143.6 Mn subscribers at end of Sept-2014.
Idea Cellular Data business continues to fire on all cylinders
IDEA added 3mn data subscribers (more…)
First, the company believes it is important to have a data offering for customers in the metro markets, and Idea’s top preference was Delhi. Idea chose Delhi because one additional block of 5Mhz spectrum was available, it is the No 3 operator by revenue market share, and it (more…)
Idea Cellular the plain vanilla voice operator hiked 2G Voice Tariffs for its large pre-paid subscriber base (95%) across 12 circles based on Big Data Analytics of its Billing Team so that the pinch is not felt on the pockets of consumer and yet Revenue Per Minute [RPM] goes up marginally across each circle. The Analytics team chooses the most optimal way to do this so that the company doesn’t lose consumers as well yet maximize the profit in the cluster / circle. (more…)
Idea’s CEO suggests that voice tariffs are still rising and likely to stay firm over the next 3-6 months. In contrast with initial concerns, Idea appears comfortable with market share trends indicated by TRAI’s latest revenue data for the industry. Traffic growth is slower than before and competition from smaller operators has intensified in certain circles but these are unlikely to disrupt Idea’s marketing strategies.
Idea does not foresee any risk of new (more…)
Despite best efforts from the Government to regulate the Telecommunication industry with prudent billing norms, Operators like Airtel, Reliance, Idea Cellular have resorted to malpractices with their very own customers such as unauthorized mobile balance deductions by activating Value Added Services the customer has not subscribed to. The TRAI and the DoT established Internet / Web Based Complaint Cells but didn’t take off due to poor reach of broadband & the internet.
A High level committee looking into this problem just a while ago has told us that they have circulated a notification to all (more…)