3G News / Data

How Airtel Pre-Paid Tariffs Changed in Jan-Feb 2014 ?

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Airtel PrePaid Mobile TariffsOur recent channel checks suggest that operators across circles continue to withdraw / reduce discounted / free minutes; however, the pace appears to have slowed. While we also picked up increasing instances of rising discounts (i.e., a reduction in RPM), the overall trajectory still remains with an upward bias on realisations. Our discussions with retailers also indicated that commission levels have remained stable over the past 6-8 months (possibly indicating this cost may not be squeezed any more).

Airtel India Increased tariffs across 16 Circles in Pre-Paid Segment leading to higher RPM while it had to offer Discounts to Competition to maintain the Average MoU Traction in 6 Circles where it reduced tariffs

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How Data Vs Voice Pricing is a Risk to Airtel, Vodafone, Idea ?

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Mobile Broadband Vs VoiceMany Mobile apps now offer either voice messaging (Wechat) or straight VoIP functionality (Skype, Viber, Line). While it is difficult to prove a direct linkage between usage of these apps and usage/revenue trends within the traditional telcos, there is at least anecdotal evidence that, on average, rising 3G / 4G penetration rates are usually associated with falling voice minutes of use.

We do not attempt to prove that messaging apps are cannibalizing voice. Instead, we attempt to quantify the cost savings to users (and therefore the voice revenue risk to operators) were subscribers to move their current voice usage over to a VoIP data based pricing model.

Compression ratios for the various CODECs used by VoIP providers vary, but we understand the most frequently used is the G.729 CODEC. Adjusting a minute

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Telecom Mergers & Acquistions – Rationality Returns to Sector

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India Telecom Mergers AcquistionsThe Telecom Ministry released M&A norms which had been approved by the Empowered Group of Ministers (EGoM) in December 2013. The ministry has retained most of the guidelines and reduced the equity lock-in period of the new entity (in case of M&A) to one year from three years earlier.

Key highlights of Indian Telecom M&A guidelines
If an acquired company holds spectrum which had been assigned against the entry fee paid (not acquired through auction), the resultant company at the time of merger will have to pay the government the differential between the entry fee and the market determined price of spectrum from the date of approval of such arrangement on a pro-rata basis for the balance period of validity of the licence. No separate

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Airtel’s First 100 Mn Subscribers in 15 Years Next 100 Mn in 5 Years

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Airtel IndiaIndia’s leading Integrated Telecommunications company has reached 200 Mn Mobile Subscribers and continues to be the Numero Uno in India. Airtel which started operations in 1994 took 15 years to get 100 Mn subscribers [2009] to its platform and just 5 years for the next 100 Mn subscribers [2014].

Gopal Vittal, Joint MD& CEO (India), Bharti Airtel told us

We are delighted to have reached this major milestone. It is gratifying to see the trust our customers have reposed in our brand and it will be our endeavor to continue

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Idea + Vodafone Go OverBoard to Acquire 900Mhz Spectrum in Metros

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idea cellularThe 1800MHz and 900Mz auctions finally concluded yesterday with incumbents stealing the show with mega spectrum wins across the country. Airtel, Idea and Vodafone that have immensely strengthened their data arsenal. While the bidding seems to be stressing the valuation for the telecom companies but we believe the auctions have clearly demonstrated the direction for further consolidation in the industry. We strongly believe that the significant acquisition

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Vodafone ARPU at Rs 193, Gets 5 Million Active 3G Customers

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Vodafone India Voice Profits RiseVodafone India reported a 2.9% QoQ increase in revenues – inline with Bharti India mobile’s 2.6% QoQ increase. MoU decline of 1.4% QoQ was lower than that of Bharti India (4% QoQ). Vodafone’s in-line result indicates continued improvement in business environment in India particularly with voice RPM hardening and churn reduction. Although data prices corrected sharply this does not signal a price war as price corrections are necessary to evangelise demand

Vodafone India Results Highlights
Subscribers Vodafone’s subscriber base grew 3.1% QoQ to 160.4mn during the quarter. Churn declined to 3.8% from 4.6% in 2QFY14.

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Idea – 2G Tariff Stable, 3G Expansion, 4G-LTE Not in Medium Term

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Idea Cellular 4G LTE StrategyIdea’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

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Affordable & Enough 2G /3G /4G Spectrum Auction in 2014 for Voice & Data

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2G 3G 4G Spectrum Auction IndiaThe Department of Telecom (DoT) has released Notice Inviting Applications (NIA) for spectrum auctions in the 900MHz & 1800MHz bands to be conducted in January 2014. Analysis of the NIA reveals that the quantum of spectrum to be auctioned in the 1800MHz band is much higher than market expectations. Additionally, in most circles, large tracts of liberalized contiguous spectrum are available in the 1800MHz band, implying that operators will have greater choice for building their data arsenal in addition to 2G Voice Services.

1,800 MHz spectrum will be auctioned in all 22 circles. The quantum of spectrum varies from as low as 2.4 MHz (paired) in UP (West) to as high as 30.2 MHz in the Tamil Nadu (including Chennai) circle. 1,800 spectrum being put up for auction includes the current 1,800 spectrum holdings of

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Anil Ambani’s Reliance Communication Shifts Focus to Balance Sheet

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Reliance Communications Focus on FinanceVoice realizations continue to inch up across the Indian Wireless sectors due to a combination of reduced discounting and tariff hikes. Encouragingly, this increase in calling rates has thus far not resulted in any significant adverse usage elasticity.

In the prepaid segment, RCOM is following the industry and has cut discounts and raised tariffs. However, it intends to compete aggressively in the postpaid segment where it has both 3G & CDMA spectrum and can offer voice and high-speed

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