Idea Cellular added 3208/3330 2G/3G sites in 1Q. 3G site count addition has accelerated from the ~2,500 run rate in recent quarters. Network opex as a % of revenue (adjusted for IUC) has declined 220bps (of which we estimate lower diesel costs to have contributed 100bps) YoY to 21.8% and is now below Airtel's ~23% rate. In our view, reduction from the current levels would be difficult, considering accelerated rollout.
5,280 sites are connected by fibre which works out to one-sixth of 3G BTS count (33621) and in line with our industry assessment for
the present. Idea incurred capex of Rs13.7bn in 1Q and it raised FY16 guidance from Rs50-55bn to Rs60-65bn.
