MTS India / Shyam Sistema Telecom (SSTL) reported revenue of Rs 3.2bn, growth of 6.4% QoQ on the back of 6.8% traffic growth and 8.9% data revenue growth. After the cleanup of inactive subscribers, subscriber base contracted by 8% to 9.04mn while MOUs grew by 11% QoQ. Despite low base, SSTL traffic growth is equal to the incumbent’s growth of 5-8%. ARPU grew by 10.3%, which could be partly attributed to the inactive subscriber cleanup. Voice RPM continues to languish at a 40% discount to incumbents at INR 0.20, dropping 1.6% QoQ.
MTS MBlaze / Data Services Growth Impressive non-voice revenue grows 9% to Rs 1.1bn; contribution grows to 35.3% being the highest in the industry, led by higher data dongle sales. However, it has grown lower than 12-15% growth by GSM incumbents. To compete with 3G data offerings of incumbents, MTS India launched 3G Plus network with data speeds of up to 9.8 mbps and deeper in-building penetrations . With licenses in the most-efficient, 800 MHz spectrum band in nine circles that have the most data potential, management focused on improving revenue and profitability through its high ARPU data business.
MarketShare Drops Despite aggressive marketing, MTS / Sistema India has lost gross revenue market share and subscriber market share consistently over the past 5-6 quarters. Further, shortcomings of the CDMA technology and data focus strategize with limited footprints have reduced MTS’ competitive position significantly in the Voice market.
Major Marketing and Branding Initiatives of MTS / Sistema in Q1-2014 are as under
Smartphone Launches
- MTS Duet – Dual SIM Smartphone with unlimited offer
- Offering unmatched data usage experience to GSM subscribers on the MTS HSD network
ECOMMERCE STORE LAUNCH
- Launched the MTS e-commerce store which provides an additional channel for sales
- Super Sunday Offer, VAS Promotions, Alliances with eBay and Snapdeal
- MTag 281 Smartphone sale with special online price
Data Services
- Tapping into modern trade – The Mobile Store, Spice
- MTS MBlaze high-speed dongle at no cost with a tablet or any product worth INR 15,000 or more
Launched 3G PLUS Network
- Network coverage across all operating circles
- Data speeds of up to 9.8 mbps under ideal conditions
- Superior in-building penetration
- Affordable and convenient tariff plans