Top three GSM Operators gained 140bps RMS YoY as Airtel, Vodafone, Idea saw 40bps, 10bps. 90bps gain respectively at the cost of BSNL/MTNL and Reliance Communications. CDMA and PSU operators have found it difficult to defend their market share despite steady growth in the industry and a benign pricing environment. Among regional operators, Telewings and Aircel executed well.
What is more important to understand is that Top 3 GSM Operators [A-Vo-Id] continue to gain RMS in circles where they have 900Mhz Spectrum.
Airtel’s RMS [Revenue Market Share] in its 900MHz was stagnant around 37% from 2QFY12- 2QFY14. In the past three quarters, there has been a significant and consistent improvement and RMS has increased to 38.5%. Vodafone’s RMS in its 900 circles has improved to 28.5% and that of Idea’s performance has remained consistently strong in its 900 circles. In their respective 1800 circles, Airtel and Vodafone have largely held on to RMS. Though Idea continues to gain in its 1800 circles off a low base, it has seen some slowdown in the past two quarters
So it is safe to conclude that an operator gaining RMS in its 900MHz circles indicates that it is genuinely improving market share. However, in 1800MHz circles where the telco is #2 or #3, gaining RMS is often a sign of revenue grabbed from weak, sub-scale players, which is less sustainable.
With this backdrop and 900Mhz being a double edged sword in the hands of operators as it serves for Voice Coverage and also for providing efficient Mobile Broadband, forthcoming auction of 900Mhz spectrum will see heightened activity and is definitely good for the economy as well.
It ia good to hear that Artel Idea and Vodafone have gained market revenue in 900 Mhz circles.Airtel is consistently is increasing its market and revenue Share which is good as its providing best and quality services in market and keeping their customer satisfied.