Only 10% of Idea Cellular Users Consume More than a Gig of 3G/4G Data

Idea 4G CustomersThe management of Idea Cellular stated that only ~10% of consumers are on packs of >1GB on 3G / 4G LTE networks in a month / 30 day cycle. Hence the higher allowance for high usage packs will not by itself result in sharp ARMB decline.

Idea carries the second highest data traffic in the industry by garnering 20.5% data RMS [Revenue Market Share] in FY16, which is higher than its overall RMS. Its incremental data RMS was 27%. Idea deployed close to 40,000 3G/4G sites in the past year in addition to (more…)

Idea Cellular 4G-LTE Strategy – Win Leadership Circles Only

Idea 4G LTE StrategyIdea Cellular one of the Top 3 Telcos in India has been a subject of critic for being laid-back in its approach on 4G LTE Mobile Data services. Idea invested aggressively in expanding 2G Voice Network and expects the next few quarters for voice rates to remain stable at around present levels and do not see much upside.

What is Idea’s 4G LTE Strategy ?
We all know that Idea Cellular currently occupies the Top or Second Slot in Revenue Market Share in 10 of the 22 Telecom Circles of India – Maharashtra, Kerala, Madhya Pradesh, Punjab, Haryana, Andhra Pradesh, Himachal Pradesh, Delhi, UP (West) and Gujarat. Idea currently earns 75% of its Revenues (more…)

Why didn’t Idea acquire 4G LTE Spectrum Aggressively ?

Idea 4G LTE SpectrumReliance Jio Infocomm which wants to run an all IP PAN India Telecommunications Network funded from its shady Oil & Gas business is the most aggressive Telco to launch a greenfield operation in the next few months. Airtel, India’s Largest Integrated Telco felt the heat from Jio’s plans and sought approval from its foreign partner / investor SingTel to get aggressive and has so far managed to beat Reliance Jio by being the first operator to launch 4G services.

Idea Cellular management suggested data growth will depend a lot on subscriber growth and the likelihood of ARPU increase is not much. The company suggested that even though c35% of its user base owned smartphones, only c30% were on 3G/4G. Separately management expects the decline in data tariffs to (more…)

Is Idea Cellular Challenged with 3G /4G-LTE Data Spectrum ?

Idea Spectrum forMobile DataThe just in time execution telecom specialist in India Idea Cellular owns 3G spectrum (900 or 2100 or both) in all of its top-5 circles and nine of its top-10 circles (except Karnataka, where it owns LTE spectrum). Idea owns LTE spectrum (1800 band) in four of its top-5 and six of its top-10 circles. It owns either 3G or LTE spectrum in all of its top-10 circles and owns 3G and LTE spectrum in five of the top-10 circles. Idea’s 3G spectrum footprint covers nearly 80% of its revenues, LTE footprint covers 61%, 3G or LTE footprint covers 87% and 3G and LTE footprint covers 53% of its revenues.

Having spectrum is important of course (more…)

Idea + Vodafone Prepare for 4G LTE Launch; SmartPhone Sales Rise

Vodafone 4G LTE LaunchPost Airtel’s 4G launch we expect both Idea and Vodafone to commercially launch 4G in select urban cities, mainly from a branding/creating consumer perception perspective. The top 3 telcos are looking to offer 4G to prevent their subscribers from being poached by Jio, which will launch as a 4G-only telco. In our view, both Vodafone and Idea will launch 4G only in select cities (rather than entire states) where they are seeing material data uptake and an increase in improvement of 4G smartphones. Given declining 4G smartphone prices and considering that 4G data tariffs could be cheaper/at par with 3G, we believe that 4G uptake may positively surprise despite a smaller rollout.

Airtel launched its 4G because (more…)