Pure Play Wireless Operator, Idea Cellular’s Voice RPM expanded 2.9% QoQ as the company did not increase discounts in the first half of the quarter. Idea’s tactics seem to have backfired as VLR subscribers declined and minutes fell 1.1%. Thus Idea’s sequential voice revenue growth at 1.8% trailed Airtel’s 2.9% the major cash cow for the Wireless Business in India.
Wireless Broadband Performance
Idea’s data revenues grew 4.3% qoq, continuing Continue reading Idea’s Voice Cash Cow Under Pressure, 27 Mn Broadband Subscribers
Idea Cellular’s Mobile Broadband Data revenue growth slipped materially. Data revenues grew 45.7% yoy (and 7.2% qoq), sharp deterioration from 80-100% yoy growth levels reported over the past many quarters. Volume growth slowed down to 75.8% yoy while realizations (ARMB) dipped a steep 17% yoy and 4.7% qoq to 22.3 paise/ MB.
Idea 3G subscribers base was 21.2 mn at end-3QFY16, up 1.6 mn qoq and 8 mn yoy. 3G data volumes grew 115% yoy and 3G data revenues grew 73% yoy. 3G now accounts for 66.4% of total data revenues. 2G data revenues have more or less Continue reading Idea Cellular Mobile Data Growth Tapers, 21.2 Mn 3G Subscribers
The management of Idea Cellular in the past had dismissed any threats from 4G-LTE Mobile Data Services. However, in the latest Call, the management took a sharp “U” turn and said Idea is and was an ROI focused company and based on its observations in the past few months it saw a business case in advancing LTE rollouts. It cited the rapid uptake of 4G devices, convergence between prices of 3G and 4G equipment and increasing willingness of consumers as key drivers for advancing LTE rollout. The company said 3G sites would largely be co-located for the next few years and did not see the need for more than 1-2% standalone 3G sites. 4G sites would be100% co-located for a few years. Continue reading Idea Cellular Makes a “U”Turn on 4G LTE Services
Plain Vanilla Wireless Operator with the Just in Time to Market Strategy, Idea Cellular registered a revenue growth of 21.6% yoy, a combination of 18.1% yoy voice volume growth but with a decline in Voice RPM from 36.2 Paise/ Min to 35.6 Paise / Minute on the back of aggressive voice pricing clearly a well thought-through volume market-share gain strategy and the company is delivering on the strategic intent. Continue reading Idea Cellular’s Voice Volume Gain as RPM Declines & 3G Grows 100% YoY
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