Our recent channel checks suggest that operators across circles continue to withdraw / reduce discounted / free minutes; however, the pace appears to have slowed. While we also picked up increasing instances of rising discounts (i.e., a reduction in RPM), the overall trajectory still remains with an upward bias on realisations. Our discussions with retailers also indicated that commission levels have remained stable over the past 6-8 months (possibly indicating this cost may not be squeezed any more).
Airtel India Increased tariffs across 16 Circles in Pre-Paid Segment leading to higher RPM while it had to offer Discounts to Competition to maintain the Average MoU Traction in 6 Circles where it reduced tariffs on select packs. Here is the Detailed Chart of Airtel Tariffs Increases in the Month of Jan and Feb 2014 as released by the company exclusively to us.
| Chennai | STD Pack Rs76 – validity 84 days – STD calls to Mobile No @ Rs0.35/min | Cost of Pack Rs76 – validity 75 days – STD calls to Mobile No @ Rs0.35/min | RPM increase of 5% |
| Delhi | Combo Pack of Rs7, validity 30 days, Local / STD calls to Mobile No @ Rs0.012/Rs0.015 per sec, Local & STD calls to Landline No @ Rs0.025/sec | Cost of Pack Rs7 – validity 28 days – Local / STD calls to Mobile No @ Rs0.012/Rs0.015 per sec – Local & STD calls to Landline No @ Rs0.025/sec | RPM increase of 1% |
| Gujarat | Combo Pack of Rs42, validity 30 days, Local calls to Mobile No @ Rs0.40/min, STD calls to Mobile No @ Rs0.35/min – | Cost of Pack Rs42 – validity 28 days – Local / STD calls to Mobile No @ Rs0.40 / Rs0.35 per min | RPM increase of 2% |
| Gujarat | Minutes Pack of Rs109 – 215 mins free to Local Mobile No. – validity 30 days | Minutes Pack of Rs109 – 215 mins free to Local Mobile No. – validity 21 days | RPM increase of 43% |
| J&K | STD Pack of Rs26, STD calls @ Rs1.20/3 min, validity 28 days | Cost of Pack Rs39 – validity 28 days – STD calls @ Rs0.35/min | At STD usage of 100 mins, RPM increase of 12% |
| Karnataka | STD Pack of Rs28, First min will be charged @ Rs0.02/sec and thereafter STD calls @ Rs0.35/min, validity 28 days | STD Pack of Rs28 – validity 28 days – First min will be charged @ Rs0.02/sec and thereafter STD calls to Mobile No. @ Rs0.35/min | RPM increase of 6%, impact will be more for higher number of calls to landlines |
| Kerala | STD Pack of Rs32, STD calls @ Rs0.35/min, validity 30 days | Cost of Pack Rs9 – validity 7 days – STD calls @ Rs0.35/min | RPM increase of 10%, RPM impact will be higher for lower usage |
| Karnataka | Combo Pack of Rs17, validity 30 days, First 120 seconds will be charged @ Rs0.02/sec and thereafter Local & STD calls to Mobile No. @ Rs0.40/min | Cost of Pack Rs17 – validity 28 days – First 2 mins will be charged @ Rs0.02/sec and thereafter Local & STD calls @ Rs0.40/min | RPM increase of 3% |
| Kolkatta | Minutes Pack of Rs99 – 500 Local mins free to Own Network – validity 10 days | Minutes Pack of Rs99 – 425 Local mins free to Own Network – validity 10 days | RPM increase of 18% |
| MP | Combo Pack of Rs67, validity 30 days, Local & STD calls @ Rs0.35/min | Cost of Pack Rs67 – validity 28 days – Local & STD calls @ Rs0.35/min | RPM increase of 3% |
| Maharashtra | Local Pack of Rs34, validity 30 days, Local calls @ Rs0.40/min | Local Pack of Rs34, validity 28 days, Local calls @ Rs0.40/min | RPM increase of 3% |
| Mumbai | Local Pack of Rs33, validity 30 days, Local calls @ Rs0.40/min | Cost of Pack Rs33 – validity 28 days – Local calls to Mobile No. @ Rs0.40/min | RPM increase of 3% |
| Punjab | Local Pack of Rs19, validity 8 days), Local Mobile calls to Own Network @ Rs0.20/min | Cost of Pack Rs19 – validity 7 days) – Local Mobile calls to Own Network @ Rs0.25/min | RPM increase of 2%, RPM impact will be higher with higher usage |
| Rajasthan | Combo Pack of Rs28, validity 28 days, Local & STD calls @ Rs0.40/min | Combo Pack of Rs27, validity 28 days, Local & STD calls @ Rs0.50/min | RPM impact of 17% |
| UP-W | Combo Pack Cost of Pack Rs4 – validity 30 days – Local / STD calls to Mobile No. @ Rs0.012 / Rs0.014 per sec – Local & STD calls to Landline No. @ Rs0.025/sec | Cost of Pack Rs4 – validity 30 days – Local / STD calls to Mobile No. @ Rs0.012 / Rs0.015 per sec – Local & STD calls to Landline No. @ Rs0.025/sec | RPM increase of 1% |
Airtel Mobile Tariff Decreased in Select Circles of India during Jan / Feb 2014
| Delhi | Combo Pack of Rs46, validity 28 days, Local & STD calls @ Rs0.50/min – | Cost of Pack Rs46 – validity 28 days – Local & STD calls to Mobile No. @ Rs0.45/min – Local & STD calls to Landline No. @ Rs0.02/sec | RPM decline of 4% |
| Haryana | Combo Pack of Rs34, validity 30 days, First 60 secs will be charged @ Rs0.016/sec and thereafter Local / STD calls @ Rs0.40 / Rs0.35 per min – | Cost of Pack Rs34 – validity 21 days – Local / STD calls @ Rs0.40 / Rs0.35 per min | RPM decline of 2% |
| MP | Local Pack of Rs62, validity 25 days, Local Mobile calls to Own Network @ Rs0.10/min | Local Pack of Rs69, validity 28 days, Local Mobile calls to Own Network @ Rs0.10/min | RPM decline of 1% |
| Punjab | STD Pack of Rs36, validity 28 days, First 60 secs will be charged @ Rs0.016/sec and thereafter STD calls @ Rs0.35/min | Cost of Pack Rs36 – validity 28 days – STD calls @ Rs0.35/min | RPM decline of 18%, at STD usage of 100 mins per month |
| Rajasthan | Combo Pack of Rs39, validity 28 days, First min will be charged @ Rs1.0/min and thereafter Local & STD calls @ Rs0.40/min | Cost of Pack Rs39 – validity 28 days – Local & STD calls @ Rs0.50/min | RPM decline of 1% |
| UP-W | Local Pack of Rs37, validity 28 days, First 2 mins will be charged @ Rs0.025/sec and thereafter Local calls to Mobile No. @ Rs0.012/2 sec | Cost of Pack Rs37 – validity 56 days – First 2 mins will be charged @ Rs0.025/sec and thereafter Local calls to Mobile No. @ Rs0.012/sec | RPM decline of 12% |