In the Indian Telecom industry, Data and Voice markets differ in elasticity. Voice is demand constrained with fixed time availability, and service differentiation is difficult. For data, demand will be driven by screen size, resolution, and speeds. Users are also likely to spend more time on data. By end-2017, Jio will have capacity to offer 4G LTE data of 4 Bn GB/day and Voice of 14 Bn min/day
India has 124 Mn 4G Smartphones of which Continue reading Why Reliance Jio Priced the Prime Plan at Rs 303 in 4G LTE Data Tariff War ?
Idea 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 ?
Vodafone 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
The 800 pound gorilla, Reliance Jio Infocomm’s entry will shake the Mobile Broadband Data Market in India at a much faster pace than it had in the past when Challengers [Aircel, DoCoMo, Uninor, etc] entered the Voice market in India and expect it to repeat but at much faster pace in the Mobile Data War.
Airtel’s data ARPU is Rs 200 and Idea’s data ARPU is Rs 150 – today, 20-25% overall subscribers of these companies are data subs. If data upgrades takes place Continue reading Jio Launch – Mobile Data ARPU Decline Inevitable, Subs / Volume Growth Tepid
5 Years after launch of 3G Mobile Broadband Services, adoption by consumers is far from satisfactory. Smartphone penetration levels, 3G/4G penetration levels, data volumes per subscriber and the pricing of data of data per MB along the pricing curve are therefore the key drivers behind revenue growth market-by-market.
Smartphone and 4G penetration levels are in part driven by the extent of the rollout of 3G and 4G networks, but the other key driver is affordability, namely GDP levels and the price of handsets. GDP per capita levels continue to rise a bit modestly in the last 2 years and the continued decline in Continue reading What Factors Influence Mobile Broadband Tariffs ?
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?