The Indian telecom industry had clocked a robust triple digit data volume growth in FY14 and FY15 with proliferation of smartphone shipments and 3G adoption leading to spurt in number of subscribers and data usage per customer. However, data volume growth is already tapering as the pace of smartphone penetration is losing steam. Along with weak macros, postponement of handset purchases by users awaiting RJio 4G launch or lower discounts on e-commerce portals stemming impulse buying could be possible reasons for slower shipments.
IDC has reported continued deceleration in smartphone shipments with meager 3.8% YoY growth in Q1FY17 versus 5.4% in Q4FY16. One could attribute the slowdown to lower discounts on e-commerce portals and stress in rural economy. With currently the SmartPhone base at Continue reading Can India Hit 500Mn Mobile Broadband Subs by 2020 ?
Uber-Didi isn’t the only Car Deal of China that needs to be noted as we move into convergence of devices and services. In a cross border deal across the Atlantic, Verizon acquired Fleetmatics which is a step toward its three-pronged connectivity + platforms + solutions strategy. The US$2.4bn acquisition of Fleetmatics will give Verizon meaningful scale in telematics. Although the acquired assets won’t be an overnight success, Verizon is aggressively putting the building blocks in place to create its own tech ecosystem.
The Telogis and Fleetmatics deals will help boost Verizon’s scale in Telematics, where it has a growing portfolio of solutions including automatic, insurance, and fleet management. Since buying Hughes Telematics in 2012, the majority of Verizon’s auto revenue (~US$500m) has come from wholesale as opposed to its retail LTE connectivity. In this case, the Telogis acquisition Continue reading Autos – Telcos will Battle for Supremacy in Telematics
For the forthcoming Biggest Wireless Spectrum Auction, Idea Cellular has re-iterated its strategy of “Just in Time” [JIT] procurement which it has mastered and executed well over the past few years. To prove this point, in Q2-2016, Idea has exited 3G Roaming Arrangements in six of the seven circles as it rolled out its own network. [Recall, the first 3G Spectrum Auction was conducted in 2010 after the Spectrum Scam and Idea Cellular then decided to skip bidding in non-strategic circles and bought the same in 2014 & 2015 auction]
The spectrum bids will be rational and Idea will adopt a circle-wise approach based on requirements. The focus will Continue reading Big Spectrum Auction – Idea Cellular Reaffirms JIT Strategy+ Rational Bidding
Pure Play Wireless Operator, Idea Cellular’s Voice RPM expanded 2.9% QoQ as the company did not increase discounts in the first half of the quarter. Idea’s tactics seem to have backfired as VLR subscribers declined and minutes fell 1.1%. Thus Idea’s sequential voice revenue growth at 1.8% trailed Airtel’s 2.9% the major cash cow for the Wireless Business in India.
Wireless Broadband Performance
Idea’s data revenues grew 4.3% qoq, continuing Continue reading Idea’s Voice Cash Cow Under Pressure, 27 Mn Broadband Subscribers
The Government has announced that Spectrum Usage Charge (SUC) will be a weighted average rate of individual rates for different bands, including 3% for spectrum won in the 2016 auction. The change is positive for Bharti, since telcos having 2300MHz that carries just 1% rate will benefit from its inclusion in the weighted average. Reliance Jio will have the lowest SUC, having the highest Continue reading Will Lower Spectrum Charges Make Biggest Spectrum Auction Attractive ?
5 Years after launch of 3G Mobile Broadband Services, adoption by consumers is far from satisfactory. Smartphone penetration levels, 3G/4G penetration levels, data volumes per subscriber and the pricing of data of data per MB along the pricing curve are therefore the key drivers behind revenue growth market-by-market.
Smartphone and 4G penetration levels are in part driven by the extent of the rollout of 3G and 4G networks, but the other key driver is affordability, namely GDP levels and the price of handsets. GDP per capita levels continue to rise a bit modestly in the last 2 years and the continued decline in Continue reading What Factors Influence Mobile Broadband Tariffs ?