The Executive Management of Idea Cellular noted that customer churn had been higher in the low-to-mid ARPU segment and higher in pre-paid than in post-paid segments. 3G data trends were sharply affected by the free offer from Jio. The Jio's free offer led to double digit growth in incoming minutes, skewing the mix.
Echoing Airtel's commentary, Idea has seen high ARPU customers lowering their usage but not drop connection altogether. The company claims that introduction of unlimited voice + data offer plans (mostly adopted by 3G/4G users) has helped to stabilize usage trends in mid-to high ARPU segment in Jan. 3G/4G data network utilization is 20-30%.
Idea Mgmt Targets reducing network expenditure on ICR agreements, pushing forward with active infrastructure sharing plans (hopes to sign deals with other operators), and other manpower expense cuts. Idea?s management believes low-priced 4G handsets will be viable only if operators subsidise the same, and hence, are not overly concerned on the same.
Idea recently launched its own suite of digital apps - Idea music lounge, Idea movie club and Idea game spark to provide regional and international digital and entertainment content to its subscribers. The apps will be free till 31 March 2017.
