Data revenues growth is expected to be the primary growth driver for telecom operators. Data realizations moderated last quarter after remaining stable for two to three quarters. We believe that data pricing will likely come under pressure as the fight for market share
intensifies in the coming quarters. Optimists believe that the data market is dominated by three to four players; hence, competitive intensity might remain low.
Over the recent past, we are seeing select reports about certain/select high-end data schemes offered by operators offered at more attractive terms ? either much more usage at flat rates or lowered rates at fixed usage limits. Data prices started moderating last quarter after remaining flattish for three to four quarters. We expect further meaningful downside to data prices in the medium term due to operators? fight for market share gains and RJio?s (expected) disruptive strategy.
