Category Archives: Telecom

India Telecom

How Jio Launch Disrupted entire Indian Telecom Industry ?

The extension of promotions by Jio were a negative for Airtel, Idea Cellular and Vodafone Lobby as incumbents would have expected some of their customers using free Jio services to start paying them once the free services of Jio concluded; however with free services from Jio continuing for one more quarter, the expected recovery is delayed. Jio’s free service put pressure on all existing operators and is driving industry consolidation. Smaller operators with low revenue market share, low data investments, low margins and Continue reading How Jio Launch Disrupted entire Indian Telecom Industry ?

Can Idea Cellular combat Jio / Airtel’s Free Voice onslaught ?

Idea Combat Jio OnslaughtIdea Cellular has a higher rural exposure than other larger telcos. Since the rural consumers have greater usage of plain 2G Voice, Idea will be more vulnerable in case the trend of unlimited voice plans pick up (Airtel followed Jio in launching unlimited packages). Reliance Jio has further highlighted the launch of affordable VoLTE mobile handsets at price points of less than Rs 2,000 targeting the mass rural consumers.

Idea’s exposure to high-end urban consumer Continue reading Can Idea Cellular combat Jio / Airtel’s Free Voice onslaught ?

Cracks Appear in Vodafone’s India Operations

vodafone-india-operations-cracksVodafone India’s results suggest some company specific factors at play while also serving to highlight some cautionary aspects pertaining to the Indian wireless industry. Several metrics appear subdued relative to peers, be it mobile subscriber adds, data subscriber adds, EBITDA margins voice usage, all of which reflects in softening ARPUs and slowing revenue growth.

Vodafone has specifically called Continue reading Cracks Appear in Vodafone’s India Operations

A-Vo-Id operators Subscriber addition continues amidst Jio Launch

Mobile Voice Business IndiaAirtel, Vodafone and Idea Cellular the A-Vo-Id Telecom Lobby in India continued to add subscribers amidst launch of Reliance Jio 4G Network. A-Vo-Id operators are focusing more (for subscriber adds) on rural areas and Jio’s initial focus is likely to be on urban areas where offtake is likely to be through dual SIMs given urban tele density is already >100%. We believe, looking at the incumbents sub data, Jio’s free period offer doesn’t appear to have impacted their net adds.

Reliance Group President has announced that it has crossed Continue reading A-Vo-Id operators Subscriber addition continues amidst Jio Launch

Vodafone’s Surprise Buy of 2500Mhz Spectrum in Big Spectrum Auction 2016

Telecom Spectrum Auction in IndiaVodafone has primarily focused on enhancing its 4G footprint. With its significant acquisition of spectrum in 2500MHz, 2100MHz, and some in 1800MHz, it has 4G coverage in 17 circles, which cover 91% of its revenues and 94% of mobile‐data revenues. Vodafone has faced capacity issues of late, and this addition was expected; nevertheless, Vodafone’s acquisition in 2500MHz, which does not have the evolved handset ecosystem of 1800MHz or 2100MHz (3G), surprised us.

Airtel’s spending, at Rs 142bn, was significantly higher than expectations. It acquired Continue reading Vodafone’s Surprise Buy of 2500Mhz Spectrum in Big Spectrum Auction 2016