idea-voice-call-tariffs

Mobile Network Quality & 3G Data Helping Incumbents

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Airtel 3G NetworkAirtel’s overall voice market share is a better way to analyze the impact of smaller players’ lower tariff strategy on incumbents’ market share (given it is an incumbents across all the circles). The data shows that Airtel has managed to hold on to its share (~30%) despite smaller players’ pricing minutes at a discount (for example, Telenor’s voice RPM is 20% lower v/s Bharti/Idea, adjusting for their ILD/NLD/roaming revenue). Telenor has a 6.5% revenue share in its six circles and managed to gain ~170bps in the last nine quarters. Even Idea has gained ~220bps in 14 of its newer circles despite overall good execution. These 14 circles contribute 60% of the industry revenues and Idea currently has ~10% revenue share in them.

3G volume pick-up has helped incumbents’

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2015 Spectrum Auction – What is The Status of Industry / Operators Balance Sheet ?

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Indian Telecom Operators Profit LossIn the aftermath of the 2015 Mega Telecom Spectrum auction we analyze the impact of Higher-than-expected payouts for spectrum renewals.

Developments on the spectrum front over the past few years have meant a substantial jump in the cost of buying fresh or renewing extant spectrum for the industry. Even as a significant portion of the renewal payouts in the two renewal auctions that have happened thus far (February 2014 and March 2015) has been borne by the Big 3 Telecom Operators [Airtel, Vodafone & Idea]

Can the current industry size that is reflective of extant spectrum pricing and competitive dynamics support the expanded balance sheet of the industry? The clear answer is in the Negative.

What needs to happen? P&Ls need to respond

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Idea Cellular Data ARPU / Usage up 10% QoQ – Voice Lowers

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Idea Cellular 3G Data GrowsIdea Cellular pure wireless services revenue growth accelerated to 21% yoy, a combination of 17% yoy voice volume growth (to 162.5 bn minutes; 3.5% ahead of expectations; down 1.7% qoq) and 3% blended yoy RPM improvement (to 45.9 paise / minute; 1.6% below expectations). Voice RPM declined 2.4% qoq and 3.1% yoy to 36.2 paise/min IDEA added 4.6mn subs in 2Q taking the total subscribers to 143.6 Mn subscribers at end of Sept-2014.

Idea Cellular Data business continues to fire on all cylinders
IDEA added 3mn data subscribers

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Idea Keen on Renewing 900MHz Spectrum During Next Auction, Shrugs 4G-LTE Threat

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Idea Cellular Management MeetIdea Cellular CEO Mr Himanshu Kapania and CFO Mr Akshaya Moondra hosted an Analyst call in which they highlighted the company’s strategy going forward.

On Spectrum
First, the company believes it is important to have a data offering for customers in the metro markets, and Idea’s top preference was Delhi. Idea chose Delhi because one additional block of 5Mhz spectrum was available, it is the No 3 operator by revenue market share, and it

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How Idea Cellular Pre-Paid Tariffs Moved in Jan-Feb 2014 ?

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Idea Mobile pre-Paid Tariff ChangesIdea Cellular the plain vanilla voice operator hiked 2G Voice Tariffs for its large pre-paid subscriber base (95%) across 12 circles based on Big Data Analytics of its Billing Team so that the pinch is not felt on the pockets of consumer and yet Revenue Per Minute [RPM] goes up marginally across each circle. The Analytics team chooses the most optimal way to do this so that the company doesn’t lose consumers as well yet maximize the profit in the cluster / circle.

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Idea Cellular 2G Voice Tariff Hikes in August / September

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Idea STV - RechargeIdea Cellular along with the rest of the Industry hiked 2G Mobile Voice Call Tariffs in August & September considered to be a seasonally weak quarter in the Indian Wireless industry. Our Statistics Team tracking the telecom circle-wise mobile tariffs has released the following pre-paid plans which saw an increment in net revenue realization to the company – the RPM factor.

Idea Cellular Mobile 2G Voice Tariff Hikes in August / September represented by circle name, old tariff followed by new tariff, the change and the impact

  • Assam Minutes pack of Rs41 – 200 local mins

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Idea Cellular Withdraws Benefits on Pre-Paid STV / Packs – May 2013

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Idea STV - RechargeIdea Cellular the plain vanilla wireless operator in India continued to withdraw benefits in bits & pieces provided to its 90% of its pre-paid subscribers by means of Special Tariff Vouchers / STV or STD Packs, etc. This is in-line with Airtel and Vodafone as these operators have come under pressure from the Corrupt Government and DoT increasing il-legal levies and charges on spectrum not permissible under the law.

The STV / Recharge Vouchers and Packs Modified in may 2013 are as follows,

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Idea Cellular 2G Mobile Voice Tariff Hike in April-2013

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Idea-CellularIndia’s Most efficient on Cost Plain Vanilla Wireless Operator Idea Cellular was not too far behind market leaders – Airtel and Vodafone in Hiking Tariffs. The Trio Combined control over 2/3rd of the Indian Cellular Revenues. Here is a list of circles where Idea Cellular hiked its Tariff to increase ts RPM without negatively affecting the overall MoU or Traffic pattern. Idea infact managed to increase Revenues in several circles despite undertaking the hike.

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Idea Cellular Expects Revenue Per Minute to be Flat

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Idea Cellular Mgmt clarified that the overall RPM remained flat sequentially despite cutting free-mins mainly due to lower proportion of higher RPM ILD minutes in 4Q. Idea believes the stricter subs acquisition norms by TRAI has discouraged multi-SIM usage and has led to incremental consumer spending in favour of existing SIM card (vs. buying a … Read more