3G mobile Data revenues in India for incumbents are incremental to Voice revenues initially because initial 3G adopters are relatively high-income subscribers whose telecom bill is a very small proportion of their total disposable income. These subscribers maintain their voice consumption despite incremental data usage (largely for entertainment and continuous Internet connectivity). These subscribers do not reduce their voice usage intentionally (however, there might be some unintentional reduction in favor of alternative data-based channels of communication). Hence, data growth drives increases in blended ARPU (without impacting voice ARPUs meaningfully). However, as 3G data proliferation accelerates (say, beyond 20% of total wireless revenues), incremental data revenues come from relatively lower income subscribers, who manage their telecom bills actively. Continue reading The Changing Trend of 3G Mobile Data Consumer in India
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
After the run away success of the 2015 Mega Telecom Spectrum Auction in 800, 900, 1800 and 2100 band, telecom tariff hike has become inevitable for Telecom Operators to expand their Network and maintain their balance sheet in black. Since the incumbents do not have major renewals of the type seen in the past two years, the focus would now shift to operating performance and execution. Continue reading 2015 Spectrum Auction – Mobile Call Tariff Hike Inevitable ?
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 ?
LTE subscribers formed 4% of global wireless subs and 12% of mobile broadband (3G or LTE) subs globally at end of Mar 2014. At the end of Mar 2014, 74% of LTE subs were in three markets (US, Japan and South Korea). Each of these three markets ranks high on overall wireless broadband penetration (defined as % of 3G/LTE subs as % of total wireless subs) – US at 91%, Japan at 100% and South Korea at 95%. In other words, these countries had a very sizable 3G subs base to be tapped into as potential LTE customers. Continue reading How does India compare with Rest of World in Mobile Broadband Adoption ?