State of 3G in India 12 Months after Launch – Comapring Reliance Vs Airtel Vs Idea

It is little over 12 months since operators started rolling out 3G Services in India. Here is a Status check on the State of 3G in India. 3G accounts for only 1-2% of the subscriber base, and incremental 3G revenues are a similar proportion of total revenues. 3G has had moderate success in increasing data. The following data points taken from recent results of  Airtel,  Idea and Reliance Communications will prove the same.

Airtel Idea Reliance
Subscribers in Mn 2.4 2.25 2.8
Average 3G usage MB per month 250 250 800
Non-voice % of total revenue 14.3 13.7 20
SMS % of total revenue 9 6.9 5.8
Wireless data (2G/3G) as % of Total Revenues 1.7 3.4 9.2

RCom’s non-voice contribution to revenues is the highest at 20% [This also includes its Strong CDMA EVDO broadband business]. However the rate of change of growth in non-voice revenues for Idea is the highest, having increased from 12.1% to 13.7% in the last four quarters. SMS and VAS are 2G services and wireless data can be provided as a 2G or 3G service depending on the speed of communication required. In the wireless data segment, I believe all operators have been able to garner interest in their 3G Services on Mobile or through USB Dongles.

Going forward, 3G will help enhance ARPMs by 1-2% over the next two years, with voice ARPM’s expected to be flat. The Data market is expected to grow by atleast 15% CAGR while RCom has higher expectation than the industry average, and even I do 🙂