Only 10% of Idea Cellular Users Consume More than a Gig of 3G/4G Data

Idea 4G CustomersThe management of Idea Cellular stated that only ~10% of consumers are on packs of >1GB on 3G / 4G LTE networks in a month / 30 day cycle. Hence the higher allowance for high usage packs will not by itself result in sharp ARMB decline.

Idea carries the second highest data traffic in the industry by garnering 20.5% data RMS [Revenue Market Share] in FY16, which is higher than its overall RMS. Its incremental data RMS was 27%. Idea deployed close to 40,000 3G/4G sites in the past year in addition to (more…)

Why Airtel / Idea Cut Mobile Data Rates on 3G/4G Packs ?

Idea 4G Rate DropAirtel and Idea recently announced price cuts / Increased Benefits on Pre-Paid 3G / 4G Mobile Data Packs. They have announced steep price cuts on entry-level and high-volume data packs. We expect Vodafone to follow suit soon. Effective cuts come essentially in the form of higher data allowance on smaller packs at one end and higher volume packs at the other end. Effective data realization (per MB) cuts range from 20% to 40% on different packs.

Idea and Airtel have a very Smart Analytics team which suggest the dynamics of pricing in the Indian Wireless market. Both the companies have not touched packs with monthly allowance between 300 MB and 1.5 GB which are the (more…)

Is Idea Cellular Challenged with 3G /4G-LTE Data Spectrum ?

Idea Spectrum forMobile DataThe just in time execution telecom specialist in India Idea Cellular owns 3G spectrum (900 or 2100 or both) in all of its top-5 circles and nine of its top-10 circles (except Karnataka, where it owns LTE spectrum). Idea owns LTE spectrum (1800 band) in four of its top-5 and six of its top-10 circles. It owns either 3G or LTE spectrum in all of its top-10 circles and owns 3G and LTE spectrum in five of the top-10 circles. Idea’s 3G spectrum footprint covers nearly 80% of its revenues, LTE footprint covers 61%, 3G or LTE footprint covers 87% and 3G and LTE footprint covers 53% of its revenues.

Having spectrum is important of course (more…)

Idea’s Risk of Spectrum Renewal in 2015 Auction, LTE Delay A Risk ?

Idea Spectrum Renewal ChallengeIn the upcoming 2015 mega spectrum auctions, Idea Cellular has 900 Mhz spectrum up for renewal in 9 circles accounting for about 72% of Idea’s last twelve month (LTM) revenues. In 2 circles (Gujarat and UP (West)), Idea has almost no back-up spectrum to offer voice services and about 15% of its revenues from these circles would be at high risk if it is unable to renew the spectrum.

In the upcoming spectrum auctions in February 2015, 59 MHz of 900 MHz and 9.2 Mhz of 1800 Mhz frequency of Idea are coming up for renewal. If we take DoT reserve prices as the auction price, we expect total renewal outgo to be Rs172 bn for Idea following the auction.

Idea has significant gaps in its (more…)

Idea 3G Data Usage Per BTS Exceeds 120 GB / Month + Bid for 900MHz EGSM Band

Idea Cellular 3G dataIdea’s 3G network usage at 122 GB per BTS per month [Includes Total Traffic of Intra-Circle Arrangements as well] in 1Q is less than 10% currently; each 3G BTS deployed in heavy traffic area can be potentially upgraded to exceed capacity throughput of 3,000 GB per month. To drive greater 3G penetration, customer education (about benefits of mobile data, apps) and cheaper smartphones are more important that lower data pricing per se, according to Idea CEO Himanshu Kapania.

He further said that 3G data business may be unviable at current pricing (more…)

Idea Spends 1/3rd of Fresh Investments on 3G

Idea Cellular continues to heavily invest in 3G – currently spending ~1/3rd of capex on 3G (network equipment + backhaul). It Expect mass market adoption of data (500m + data subs users) over next 3-5 yrs, with the mkt size expanding to Rs500-700bn.

Idea continues to gain both VLR (reflects active subs) sub share (+0.6% qoq in 4Q13 qtr) and rev mkt share (+0.9%qoq). Moreover,
its incremental share for both these metrics is 40-50%. Driven by (a) Increase in mobile penetration – Physical penetration is still only ~ 50%; (b) Increase in MoU per sub in part helped by lower incidence of multi-SIMs and (c) Improvement in voice (more…)

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