Idea Cellular along with the rest of the Industry hiked 2G Mobile Voice Call Tariffs in August & September considered to be a seasonally weak quarter in the Indian Wireless industry. Our Statistics Team tracking the telecom circle-wise mobile tariffs has released the following pre-paid plans which saw an increment in net revenue realization to the company – the RPM factor.
Idea Cellular Mobile 2G Voice Tariff Hikes in August / September represented by circle name, old tariff followed by new tariff, the change and the impact
Idea Cellular the plain vanilla wireless operator in India continued to withdraw benefits in bits & pieces provided to its 90% of its pre-paid subscribers by means of Special Tariff Vouchers / STV or STD Packs, etc. This is in-line with Airtel and Vodafone as these operators have come under pressure from the Corrupt Government and DoT increasing il-legal levies and charges on spectrum not permissible under the law.
The STV / Recharge Vouchers and Packs Modified in may 2013 are as follows, (more…)
Idea’s superior execution can be seen both in its sustained revenue share gains as well as better cost control vs. peers. Idea has gained revenue share in all its top 5 revenue generating circles in the last 3 years. Vodafone has gained in 4; Airtel has lost in all 5 of its biggest circles. The top 5 circles for each operator contribute 50-60% to their topline.
Idea Cellular has shown sustained margin improvement vs. flat to declining trends by RCOM and Bharti. The sustained improvement on better cost control is especially commendable as it straddles its 2 roles – incumbent in 11 circles and new entrant in the remaining. (more…)
India’s Most efficient on Cost Plain Vanilla Wireless Operator Idea Cellular was not too far behind market leaders – Airtel and Vodafone in Hiking Tariffs. The Trio Combined control over 2/3rd of the Indian Cellular Revenues. Here is a list of circles where Idea Cellular hiked its Tariff to increase ts RPM without negatively affecting the overall MoU or Traffic pattern. Idea infact managed to increase Revenues in several circles despite undertaking the hike. (more…)
Idea Cellular Mgmt clarified that the overall RPM remained flat sequentially despite cutting free-mins mainly due to lower
proportion of higher RPM ILD minutes in 4Q. Idea believes the stricter subs acquisition norms by TRAI has discouraged multi-SIM usage and has led to incremental consumer spending in favour of existing SIM card (vs. buying a new SIM); this has also partially led to increase in MOU. The Mgmt does not expect any sharp increase in RPMs and believes that impact of tariff hikes will be gradual.
Idea has seen industry-wide discipline in subs acquisition costs and believes margin expansion will continue if acquisition costs remain in control. Idea stated that its utilization levels are still low and may also add to margin expansion as usage increases.
On Roaming Charges Abolition
Idea stated that if the domestic roaming charges are abolished (which are c.4% of total revenues), tariff balancing may take
place to compensate the loss.
2G & 3G Data
Mgmt indicated that data ARPU is still very low at Rs55 (vs. comparable markets) and it expects continued increase in data usage. Mgmt believes that increase in data usage will be driven more by reduction in prices of data-enabled devices than lowering of data tariffs.
900 MHz spectrum remains a major factor along with the incumbency factor for market leadership in various circles. Idea holds 900 MHz spectrum in 9 service areas covering ~48% of national revenue and ~72% of Idea’s revenue. The following Chart Shows Idea Cellular’s Revenue in Circles of 900MHz (more…)