Airtel Biggest Beneficiary of Lower Spectrum Usage Charges

Airtel IndiaCurrently in India, the current spectrum usage charges (SUC) is escalation based on spectrum holdings. On average, operators pay SUCs in the range of 3.6% to 5.6% of adjusted gross revenue (AGR). We believe that lower SUCs (if implemented) will partly offset the spectrum renewal charges to be paid by the operators at the time of licence renewals. Airtel pays the highest SUCs in the industry and would be the biggest beneficiary of a lower SUC regime. In a scenario of a flat 3% SUC (as recommended by the TRAI), Airtel’s potential NPV benefit is Rs20/sh (vs. Rs39/sh for spectrum renewal charges). However, if a flat SUC is pegged at 5%, then the potential benefits for Bharti and Idea will be reduced to Rs5/sh and Rs1/sh, respectively.

Despite significant Reserve Price cut

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Airtel to Launch 3G In Bangladesh with Huawei Network

Airtel IndiaBharti Airtel’s subsidiary – Airtel Bangladesh has reportedly selected Huawei Technologies as the network partner for launching 3G services in Bangladesh. The company has already received 3G licence with 5 megahertz (MHz) of spectrum in 2100 MHz band for $105 million in the auction held on September 8, 2013. Further, the company is planning introduce 3G base products in Bangladesh to meet the growing demand of high speed surfing and wireless Internet entertainment.

Recently, the Bangladesh Telecommunication Regulatory Commission sold 25 (MHz) of 3G airwaves for $525 million to four telecom operators including

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Airtel Advantage 199 Plan Tariff Hiked

Airtel Mobile is increasing voice tariffs for post-paid customers under one of its per-minute billing plans, Advantage 199, with effect from 8 Sep. This is in-line with our thesis of expected ARPM increases going forward.

Adhering to TRAI guidelines, Bharti Airtel has informed its customers that it will raise tariffs on the Advantage-199 plan. Under this plan, per-minute on-net local and STD rates will be raised to 60 paise from the current 50 paise. Rates for calls to

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How Airtel is better positioned in Mobile Data 3G /4G LTE than Idea ?

Airtel IndiaAirtel 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

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Airtel Pre-Paid Mobile Tariff Benefits Reduced in May-2013 – Tracking Changes

Airtel IndiaBharti Airtel India’s Largest Wireless Carrier has a Big Data Analytics Team Closely Working with its Product Managers in Delhi who decide how to modify the Pre-Paid Plans across 22 Cicles in India. We tracked Airtel closely in the last 1 month and here are the key changes they brought across circles reducing benefits on Pre-Paid Special tariff Plans / Vouchers and boosting bottom-line of the company. The following table shows the same

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Airtel Introduces Video Downloads at just Rs 1

India’s Leading Wireless Operator Airtel has introduced Video Downloads for its customers at just Rs 1. How can this happen ? To access Airtel’s all new Re 1/- video downloads library Option 1: Call toll-free IVR 52010, you will receive a WAP link of Re 1 Video Store in your SMS inbox. Upon clicking on … Read more

Airtel’s Aggressive India Helps Gain Revenue Market Share

Airtel’s aggressive India mobile strategy, started in Apr-2012, is bearing fruit. On the one hand, the company has managed to bring about discipline in the industry on tariffs and costs, while on the other it has managed to reap rich market share dividends (60% share of incremental industry revenues in the first nine months of … Read more

Impact of 3G Roaming License Cancellation on Airtel

The 3G roaming controversy is currently in court, with operators having brought in a stay order on the government’s notices for penalties. The government’s contention is that the 3G network sharing arrangements are illegal and need to be stopped, while operators argue that this was explicitly allowed by the government prior to the auctions in … Read more