Data Volumes Gradually Rising in India

Airtel and Idea have reported average sequential growth of 20-25% in data volumes in the last two quarters, and the average contribution of non-voice to wireless revenues was 16%. Of this, wireless data (2G/3G data) accounted for close to 6% of revenues. We believe that this will continue to increase as the take-up of 3G services picks up. We estimate that the contribution of non-voice revenues will increase further to ~17-18% by F2016, leading to non voice revenue CAGRs of 12% for Bharti and 17% for Idea.