It requires no big brainier to tell as mobile data gains scale and penetrates relatively lower-income subscribers, it will start cannibalizing voice revenues. We expect this cannibalization of voice by data to start materializing during FY16. In this backdrop, incumbents need to increase their investments to build quality data-ready networks and launch of Reliance Jio Infocomm may well act as a trigger for that.
Strong Growth of Mobile Data
The strong data consumption growth augurs well for incumbent telecom players, but we think that data is not necessarily completely incremental to voice revenues Continue reading Mobile Data to Cannibalize Voice – Airtel & Idea Strategies to Mitigate
Idea Cellular has reported a blended ARPU increase of about Rs12 over the last year (from the Sep-13 quarter to the Sep-14 quarter). We estimate that data contributed about Rs10 to the incremental ARPU, i.e., more than 85%. Data continues to grow at a very strong pace, admittedly from a low base. We believe data will remain the primary ARPU increase driver in the near to medium term. We calculate that voice ARPU increased just Rs1 over the last year, contributing about 10% to incremental ARPU. Non-voice non-data revenues remained flattish Y/Y, at Rs12 per subscriber per month. Continue reading Idea shrugs 4G LTE, embracing 3G Mobile Data Aggressively, Last Leg of 2G CAPEX
Idea Cellular’s pure wireless revenue growth was 8.9% qoq and 15.7% yoy. Reported standalone revenue growth was lower at 7.3% as non-mobility, non-service revenues declined meaningfully qoq. Such revenues include handset sales and external revenues from long distance services and leasing owned towers. Continue reading Idea Cellular 3G Data Revenues Overtakes 2G + Wireless Grows 9% QoQ
Plain Vanilla Wireless Operator, Idea Cellular is bullish on data growth and data revenue growth. Its current 3G utilization rates stand at 20% to 40% across circles. Idea’s focus is to increase the utilization rate by driving up the volumes. Realization will be the focus when utilization is ~60% to 70%. For an incumbent operator like Idea, the cost per MB is lesser; incremental costs are low. Voice infrastructure is being used for data. Thus the customer acquisition, spectrum, backhaul and support infrastructure is already in place. Continue reading Idea Shifts Focus to 3G Utilization, Reduce MicroWave Backhaul
Idea Cellular CEO, Himanshu Kapania hosted Analyst Call to discuss FY 2013-14 results. One of the Grey areas of this call is Himanshu does lot of repetitive work by talking on what is already sent out & uploaded on Idea website.
Responding to a question on if they see launch of Reliance Jio Infocomm as a threat, Himanshu said that he will not comment on particular competitor and added India is not ready for 4G LTE mass market and operators may find some selective Hotspots. He made it very Continue reading India not ready for 4G LTE , Voice Market Very Lucrative – Idea CEO, Himanshu Kapania