Idea Cellular’s Mobile data revenues were up 9.3% qoq and 61% yoy in 2QFY16. Share of data in mobile revenues increased by 190bps qoq to 19.6% in 2Q. Data traffic or volume growth was 83% yoy, driven by 118% growth in 3G traffic and 47% growth in 2G [EDGE, GPRS]. Within mobile data, 3G revenues showed much stronger growth at 15% qoq/95% yoy compared to 2G [flat, +23%]. Idea management explained the 5% yield drop was driven by competition in data market and stiff resistance from price-sensitive consumers to data tariff hikes initiated in July/August that forced a roll back data. Management highlighted that data supply growth has accelerated but data demand was slow to pick up so far; nonetheless, mgmt. is hopeful that demand growth will increase over time, and Continue reading Idea – 3G Main Driver for Mobile Data, Voice RPM Challenging Times Ahead
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 reported a strong Financial Year 2014 with subscribers base touching 135.8 Mn. Idea Voice traffic grew 8.6% qoq and 9.5% yoy to 157.1 bn minutes. MOU for the quarter was 397 mins/sub/month, +5.6% qoq but down 2.1% yoy. Strong voice volume growth, after three quarters of sub-par numbers on this metric, was encouraging, and validated Idea’s aggressive 2G network expansion in the past two quarters. Voice RPM Down Overall RPM came in at 43.6 paise/min, down 3% qoq, but up 5.8% yoy. After three quarters of strong RPM improvement, decline in RPM was surprising, especially given the continued discount reduction push by the industry.
Idea Cellular Mobile Data Subscribers & Revenues
Total mobile data subscribers at the end of Mar-2014 stood at 25.3 mn, representing 18% of its total subs base. Idea further tightened its definition of an active data subscriber to one who uses at least 1MB of data over a 30 day period (up from 100 KB earlier) Data usage per sub was 410 MB/month on a revised data subs base. Data usage per sub was a strong 300 MB per month for 2G subs. Reported usage per sub for 3G subs was 462 MB. Total 3G Subscribers was at 10.2 Mn (7.5% of the subscriber Base)
Data revenues grew 12% qoq and 78% yoy to Rs 6.9 bn. Data now accounts for 10.1% of Idea’s wireless revenues. Growth was led by 31% qoq and 139% yoy growth in data volumes. Data revenue per MB dipped 14.5% qoq to 25.3 paise. Decline is largely on account of increased adoption of high usage packs, which have lower effective realization. We have of course, also seen aggressive pricing of data plans as operators look to capture a bigger share of the fast growing data market. 3G data volumes and revenues grew 38% qoq. 3G data formed 46% of total data revenues and 48% of total data volumes for the quarter. The 3G user mobile data ARPU is steady at Rs. 111 per month.
Total Number of 3G Cell Sites is just 20% of the 2G sites and the lower number can also be attributed to the fact that Idea does not have 3G cellular operating licenses on a PAN India basis.
CAPEX – Idea Cellular intends to spend Rs 3,500 Cr on the Network in FY 2015 excluding Spectrum related payouts. The management acknowledges about the 1800Mhz spectrum availability for 4G-LTE but adds will look forward to the same on consumer demand and technology stabilization.
The management of Idea Cellular reiterated that it expects double-digit growth in the voice business as industry is still at ~62% VLR penetration, which offers strong growth opportunity in the voice business. However, one should note that IDEA’s FY14E traffic growth decelerated to 9% vs 17% in FY13, due to lower subscriber growth, so isn’t the Idea management a bit over optimistic here ?
How Idea Plans to Migrate users from 2G to 3G ?
IDEA’s 3G users consume 2.5x data vs 2G users, leading to Continue reading Idea Cellular see double-digit growth in Voice, OTT Threat to Long Distance Calls
Idea Cellular Ltd India’s Third Largest Wireless Company which participated in the Nov-2012 1800Mhz Spectrum Auction has said that they do not have any crunch for Spectrum to run the current Pan India 2G Voice & 3G Services in selective circles. Idea CEO Mr. Himansu Kapania addressing analysts said that, Continue reading Idea Cellular 700-1800-2100 Mhz Spectrum Bid only After Roadmap – No Crunch for now – Himanshu Kapania
On Indian Telecommunications Voice Market
- Over the last 2-3 years Indian Telecom sector witnessed huge battle on the competition front as result of which there are 700 mn mobile subscribers on the basis of VLR
- Mobile Voice Traffic continues to grow strongly, with a industry-wide growth of 20%
- The Voice Market is under-penetrated with not more than 500-550 Mn actual users and there is scope for at least 300 Mn additional users to enter the market