Data volume/ revenue growth momentum slowed down quite sharply. Each of the three incumbents saw a sharp slowdown in yoy data volume and revenue growth momentum. As a composite, yoy data volumes grew 73% for the incumbents, a marked slowdown from the 85-100%+ levels reported for the past three quarters. Yoy data revenue growth for the composite was 56% for 2QFY16, again meaningfully lower than the 70-80% levels reported for the past few quarters. Vodafone?s performance was particularly disappointing ? data revenues for the company grew sub-50% yoy with a volume growth of 69% yoy; this was despite the company stepping up its aggression quite substantially in the form of ?double data offerings? during the quarter (this offer continues selectively). We wonder if the industry has hit a wall in terms of data usage per customer on 3G.
Step-up in pace of 3G/ 4G network expansion: quarterly 3G site additions were the highest ever for both Bharti and Idea. Bharti also stepped up 4G investments substantially while Idea and Vodafone have both announced their 4G network launches in early-CY2016.
