Category Archives: Broadband

Broadband in India

What was Idea’s idea behind procuring 2500 MHZ Spectrum ?

idea-spectrum-in-2500mhz-bandThe Executive strategy team at Idea Cellular acquired capacity bands, citing two reasons: 1. They wanted to be competitive in their leadership circles and offer best services. 2. In the non-leadership circles, they were able to acquire spectrum by spending a modest Rs. 5-7bn, which enables them a good hedge for small spends.

On 2500MHz ecosystem, Idea Cellular said that since now China has allocated 2500MHz, the deployment is expected to be fast. Additionally, they want Continue reading What was Idea’s idea behind procuring 2500 MHZ Spectrum ?

Fixed / Mobile Convergence – Airtel Feels Heat before Jio FTTH Triple Play Launch

airtel-jio-fixed-mobile-convergenceAnybody tracking the Indian Telecommunications sector can say that Sunil Mittal lost sight of India when he went for acquisition in Africa and other countries as Indian market threw lots of surprises. Worst nightmare for Mittal is his entire Revenue model in Voice being under threat as Reliance Jio wants to offer FREE Voice Calls forever. Airtel is also severely lagging in offering huge Mobile Data Bundles compared to Jio. Airtel not only neglected but turned clod shoulders towards its DSL Broadband Subscribers for over a decade now – No F***ing innovative offerings nor upgrade in Infrastructure to offer higher speeds barring few areas of only Metro Cities [Forget Tier II and Tier III] where FTTH was laid.

To date, all the Indian telcos have had Continue reading Fixed / Mobile Convergence – Airtel Feels Heat before Jio FTTH Triple Play Launch

Jio Launch – Mobile Data ARPU Decline Inevitable, Subs / Volume Growth Tepid

Mobile Data ARPU Delcine IndiaThe 800 pound gorilla, Reliance Jio Infocomm’s entry will shake the Mobile Broadband Data Market in India at a much faster pace than it had in the past when Challengers [Aircel, DoCoMo, Uninor, etc] entered the Voice market in India and expect it to repeat but at much faster pace in the Mobile Data War.

Airtel’s data ARPU is Rs 200 and Idea’s data ARPU is Rs 150 – today, 20-25% overall subscribers of these companies are data subs. If data upgrades takes place Continue reading Jio Launch – Mobile Data ARPU Decline Inevitable, Subs / Volume Growth Tepid

Can India Hit 500Mn Mobile Broadband Subs by 2020 ?

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 ?

What Factors Influence Mobile Broadband Tariffs ?

Factors Determine Mobile Data Tariffs5 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 ?

Indian Mobile Data entering phase of 2006-2010 Voice Business – Idea

Indian Mobile Data marketPure Play Wireless Operator, Idea Cellular believes that wireless internet penetration at less than 31%, mobile data will be the next big opportunity for operators. Current data expansion phase is similar to the 2006‐2010 voice expansion phase wherein telecom operators improved coverage and dropped prices to accommodate a substantial jump in subscribers, leading to revenue growth. Idea believes there are only 4‐5 serious operators in the data space including Reliance Jio and with non‐top 3 players Continue reading Indian Mobile Data entering phase of 2006-2010 Voice Business – Idea