Category Archives: Telecom

India Telecom

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

India’s Biggest Telecom Spectrum Auction – Tepid Demand

indias-biggest-telecom-spectrum-auctionIndia’s and possibly World’s Biggest Telecom Spectrum Auction will go live on Oct 1st, 2016 amidst tepid demand from existing Indian operators. Global Telcos give it a miss due to fresh memories of Spectrum Scam and constantly changing policies with motive of massive corruption. The spectrum bands put to auction include 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz, and 2500MHz, constituting a total of 2,355MHz of spectrum, with the largest chunk in the most sought after 700MHz band suitable for 4G and 5G Wireless Broadband.

Barring few circles, we expect most of the spectrum to be sold at current Continue reading India’s Biggest Telecom Spectrum Auction – Tepid Demand

Autos – Telcos will Battle for Supremacy in Telematics

Auto Industry Telematics BattleUber-Didi isn’t the only Car Deal of China that needs to be noted as we move into convergence of devices and services. In a cross border deal across the Atlantic, Verizon acquired Fleetmatics which is a step toward its three-pronged connectivity + platforms + solutions strategy. The US$2.4bn acquisition of Fleetmatics will give Verizon meaningful scale in telematics. Although the acquired assets won’t be an overnight success, Verizon is aggressively putting the building blocks in place to create its own tech ecosystem.

The Telogis and Fleetmatics deals will help boost Verizon’s scale in Telematics, where it has a growing portfolio of solutions including automatic, insurance, and fleet management. Since buying Hughes Telematics in 2012, the majority of Verizon’s auto revenue (~US$500m) has come from wholesale as opposed to its retail LTE connectivity. In this case, the Telogis acquisition Continue reading Autos – Telcos will Battle for Supremacy in Telematics