TRAI had recommended a minimum bid block size of 3.6 MHz for 900 band spectrum versus the 5 MHz bid block size stipulated for the Feb 2014 auctions. The DoT argued that there has been no change in market dynamics since the Feb 2014 auctions and hence there is no need to change the minimum bid block size.
The TRAI, rightly noting the limited availability of spectrum in these auctions and the much-higher possibility of irrational/tactical bids with a 5 MHz bid block size, has reiterated its earlier recommendation of keeping the minimum bid block size at 3.6 MHz (for all circles except West Bengal where the TRAI recommends 2.4 MHz noting availability of only 4.4 MHz spectrum in (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…)
The GSM active subscriber base (excluding RCom & Tata GSM subs) has increased 5.9% from 603 mn in Dec-13 to 639 mn in Jul-14. India’s total active subscriber base (GSM & CDMA) has expanded from 762 mn subscribers to 797 mn in this period. We expect subscriber addition to moderate in the medium-to-longer term due to two reasons: 1) Indian telcos’ focus on “profitable” subs, and 2) incremental sub additions primarily accrue from rural areas, where growth will likely be slower. (more…)
Reliance Communications Management has guided for capex investment of Rs15-20bn for FY15 following a capex-light model. They indicated that they will be receiving any additionally required fibre and tower assets from Reliance Jio through the reciprocal arrangement and will only invest in electronics.
The company has realigned its low-usage cell sites to achieve base station level profitability. This will have a temporary effect on the subscribers in those geographies; however, the company intends to use ICR (intra-circle roaming) arrangements to provide services in those areas. Management attributed the decline in the revenues of global operations to (more…)
Telenor India / Uninor reported robust revenue of INR 10.2bn, up 9.6% QoQ. This was led by healthy subscriber-led traffic growth of 4.5% and a 5.1% RPM increase. Telenor hiked its voice RPM by 5.1% to INR 0.241/min, but it was still one-third the discount to Airtel and Idea Cellular.
Traffic growth of 4.5% was led by strong 2mn subscriber addition during the quarter of about 6.6% subscriber growth. MOU fell by 3% to 449 mins after a sustained rise over the past five quarters. Telenor’s MOU was above Idea’s and Airtel’s of 401 and 433, respectively, due to its low price offerings, which was largely due to the 2nd SIM phenomena. ARPU grew by 1.9% to INR 108 despite the (more…)
Reliance Communications 3G services has expanded footprint across the circles of Karnataka, Andhra Pradesh, Tamil Nadu, Kerala and UP-East from June-20th. Aircel is the 3G License Holder in all the 5 circles where Reliance has started providing connections. This is potentially due to the positive stance given by the DoT for Intra-Circle roaming arrangements for 3G Data Services. Reliace 3G is already available in Delhi, Mumbai, Kolkata, Punjab, Rajasthan, Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar, Orissa, Assam, North East, Jammu & Kashmir.
Reliance 3G will now be available (more…)