China Unicom believes 3G growth will accelerate in 2013 given major improvements in handsets / smartphones, product offerings, network coverage and branding. The company expects 3G net adds in 2013 to be higher than 2012’s level. Management will focus on increasing mobile scale and quality of customers, and expects high-end subscriber mix to continue to increase.
3G ARPU will continue to decline, especially after the introduction of 3G migration packages for 2G subs in 4Q12. 3G churn rate should also improve as contract subscribers as a percentage of 3G subscribers has increased from 35% in 2012 to 46% in 2013. Chian Unicom does not see room for further reduction in 2G/3G tariffs. Continue reading China Unicom Focus on 3G; 4G LTE in HotSpot Areas Only
Idea Cellular, third Largest Wireless Service Provider in India on the basis of Revenue Market share has some interesting insights to share. The company has a gap between current (34 paise) and headline (43 paise) voice RPM will continue to narrow as promotional offers keep declining at a faster clip with reducing competition.
Idea currently loses Rs 135 mn per day on promotional offers (due to 9 paise lower RPM compared to headline tariff). As promotional offers are being gradually withdrawn (from August 2012), the share of dual SIMs in the industry has been declining (1.15x vs. 1.3x a year ago). Also, with declining competitive intensity, minutes will migrate from marginal players to old operators as price arbitrage reduces. Continue reading Idea Reducing Promotional Offers, Positive on 3G, 4G LTE Only On Right Spectrum
Over the past 12 months, Indian Telecom Operators have started disclosing Data Revenues and metrics separately to give a sense of the performance of Data Networks in India. Currently, data revenue is being driven by 2G data, as 3G smartphone penetration is still low and 90% of data subscribers are still on 2G. However, 3G data revenue is set to pick up. On the back of rising investments in 3G networks, improving smartphone penetration and narrowing data pricing arbitrage between 2G and 3G. Continue reading India QoQ 3G Data Growth Strong and Rising
One of the big questions being asked today is what is the impact of 3G / 4G data substituting traditional communication technologies – Voice and SMS on operators’ bottomlines. The data growth story is widely regarded as positive for operators where the growth of data can help support higher profitability, but we do not have enough data to quantify this statement.
While data substitution occurs over a period of time, for the purposes of our analysis we take an extreme scenario, and assume a scenario where all voice and all SMS are substituted by data (VOIP and IM). It is important to note that the impact of data substitution will vary by market and how price plans are structured as well as the different starting points and mixes of Continue reading Impact of 3G /4G Data Usage on Voice / SMS Revenues