If we compare the spectrum availability, data usage (DOU) per subscriber and data penetration of the Indian Telcos with those in China / South Korea will tell if Indian operators have have adequate spectrum for a 3G/4G roll-out over the medium term.
Indian telcos have 178 MHz of liberalized Continue reading How India Compares with China on Spectrum / Data Usage ?
Indian Government has only one option to Tax its citizens – Indirect Tax at Source, as a pathetic 4% Indians pay Income Tax. The new regime under Narendra Modi has hiked the Service Tax by 200bps to 14% [Swach Bharat Cess still a overhang]. Our channel checks on tariff changes over the last couple of days suggest that Airtel has largely absorbed the recent increase in service tax in the prepaid segment leaving the net outgo for the subscriber unchanged. For Post-Paid subscribers, (<15% of total), the higher tax has been passed on as there is nothing much Airtel can do about it except raising Free On-Net call limits, if at all it wishes to do so. Continue reading Airtel absorbs Service Tax Hike for Pre-Paid Customers, Will Idea / Vodafone do ?
Armed with acceptable quantum of liberal Spectrum in 900Mhz band and 2100Mhz band, Airtel, Vodafone & Idea Cellular – the Incumbents Lobby have gotten far more aggressive than they reveal it on the Analyst Call. I had an opportunity to speak to Infratel & Indus Tower Executive from which I gather A-Vo-Id group is cautiously watching the Reliance Jio telecom saga unfold. Continue reading How Airtel, Vodafone & Idea are Scaling Data Networks to Thwart Reliance Jio 4G Threat?
Idea Cellular is doing a better job of monetizing 3G as its revenue per 3G base station is c34% higher versus Airtel (despite having more metro centric presence Airtel has only 4% higher 3G subscribers versus Idea). Continue reading Is Idea doing better than Airtel in 3G Mobile Broadband ?
Plain Vanilla Wireless Operator Idea Cellular reported a whopping 103% yoy and 13% qoq growth in data revenues to Rs14 bn in Q4FY15. Data revenues formed 16.9% of wireless service revenues for 4QFY15, up from 10.1% in 4QFY14. Market leader Airtel which has adopted different strategy reported Data revenue growth of 70% yoy at Rs23 Bn in Q4FY15. Even though Idea grows on a smaller revenue base relative to Airtel, growth of 103% is certainly commendable. We understand Airtel’s reluctance to aggressively chase volumes on the voice side but do not see any valid rationale for sustained under performance on data revenue growth rates.
Idea Cellular’s Data revenue growth was Continue reading Idea Mobile Data Growth Faster than Airtel at 103% YoY
Four years into the commercial launch of 3G in India, we have tried to analyze the impact of 3G on relative market shares of 3G versus non-3G operators in this note. For our analysis, we have looked at the cumulative change in revenue market share (based on operator-wise gross revenues reported by the TRAI) from Sep 2010 to Sep 2014. We have tried to cut the data in multiple ways to test if 3G has delivered on the competitive premise. Continue reading 4 Years After 3G Launch, Does 3G Spectrum Help Operators Win RMS ?