Idea Cellular’s spectrum needs are more discretionary now unlike in 2014/15 and hence feels no pressure to invest in 2016 auctions; 700Mhz is not economically feasible at proposed price. Given large supply of spectrum across bands, Videocon deal didn’t make economic sense and market is overly concerned with potential impact of Reliance Jio, Continue reading 700Mhz Spectrum Pricing Not feasible Economically – Idea Cellular CEO
It has been over 5 years since Mobile Number Portability has been introduced in India. We take a look at the net subscriber gains or losses for various operators. Incumbents Airtel, Vodafone and Idea stand out as the only gainers; Idea remains the biggest gainer with 17 mn net port-ins until end-January 2016. Not surprisingly, RCom, Aircel and Tata Indicom / DoCoMo are the biggest losers. BSNL’s performance is surprisingly respectable.
Idea tops the chart with Continue reading Who Gained in Indian Mobile Number Portability Battle after 5 Years ?
ARPU & Subscribers Growth – Most of the subscriber addition in India is largely coming from the lower ARPU subs, which negates any upward migration of ARPUs of existing subs graduating from 2G to 3G or from 3G to 4G (or even 2G to 4G directly). Also, note that the Top 10-15% sub-base in India has disproportionately high economics relative to the average Continue reading Dynamics of Mobile Subscribers Spend in India
Airtel Voice RPM declined due to higher competitive intensity in a few circles. Recently, competition increased from leading players as opposed to smaller players in the past. In the medium-to-long term, voice RPM needs to rise though there may be quarterly fluctuations. The management was very clear in stating that their goal is to increase both revenue growth as well as market share and to this end current voice prices are unsustainably low. They also said that they were disappointed that voice prices have eroded substantially Continue reading Airtel Voice RPM Down + 900Mhz for LTE in Future
Reliance Jio’s launch will accelerate consolidation leading smaller telcos to exit market overtime. Currently the top 3 telcos have 70% of total market share with remaining 8-9 telcos sharing the remaining 30% market share. The key value proportion of smaller telcos to consumers has been cheaper offerings than larger telcos but sometimes with inferior coverage. With Jio likely offering cheaper tariffs than existing telcos in the market, we believe that it would lead to subs churning from Jio. Larger telcos may be able to Continue reading How will Indian Telecom market Progress Post Jio Launch ?
Vodafone believes 2G, 3G and 4G will co-exist in India for years to come and believes multiple networks can help address the needs of all strata of customers and is cost efficient. Management highlighted past failure of a 3G-only network. Vodafone is increasing its own 3G network footprint from nine circles to 16, reducing the dependence on roaming, which will help improve quality and lower costs. Vodafone is also working aggressively to launch LTE in five key markets that account for 40-50% of its data revenue by March 2016. [We think this is a bit laid-back Continue reading 2G, 3G & 4G Will Co-Exist in India – Vodafone