In India, Mobile Data Service is already substituting traditional revenue streams like SMS, with data use per sub increasing 316%, vs a decline of SMS sent per subscriber by 34%, over the past 2 years.
With the upcoming launch of LTE on a large scale, incumbent operators [Airtel, Vodafone, Aircel] have chosen a middle path between making large investments to develop an LTE-based network and protecting their existing voice-driven businesses. While operators recognize the potential of the data opportunity, we see the level of investments to build data Continue reading Mobile Data the Key Theme for Indian Telcos in 2015 Leading Towards Convergence
The Indian telecom regulator TRAI wants to know about consumer perception on mobile services in India. TRAI Survey collects details from Mobile Service Customers on various parameters such as – Provision of Service, Billing, Network Performance, Reliability and Availability, Value Added Services, Customer Care, Implementation and Effectiveness of Telecom Regulations and Quality of Service. This is your best chance to bring to light the massive day light loot and menace of Pre Paid Mobile Balance Deduction that operators led by Airtel, Idea Cellular and Reliance Communications have resorted to. Continue reading TRAI Wants to Know Consumer Perception about Mobile Services in India
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
MTS India / Shyam Sistema Telecom (SSTL) reported revenue of Rs 3.2bn, growth of 6.4% QoQ on the back of 6.8% traffic growth and 8.9% data revenue growth. After the cleanup of inactive subscribers, subscriber base contracted by 8% to 9.04mn while MOUs grew by 11% QoQ. Despite low base, SSTL traffic growth is equal to the incumbent’s growth of 5-8%. ARPU grew by 10.3%, which could be partly attributed to the inactive subscriber cleanup. Voice RPM continues to languish at a 40% discount to incumbents at INR 0.20, dropping 1.6% QoQ. Continue reading MTS / Shyam Sistema India – Closer to Breakeven
India is still in nascent stages of Data boom with consumers having good access to 2G and 3G networks and selectively to 4G as well. Let us see what is the state of Mobile Data in other Asian countries.
Indonesia – Like India the focus is on upgrading from 2G to 3G. Mobile data tariffs are relatively high at US$7-10/GB (versus the US$3-4 ARPU) for entry-level plans. Re-pricing of data tariffs could be a slow process and driven by the telcos network capacity. Mobile data revenue has been largely due to the 2G/2.5G handsets-driven internet usage. Smartphone penetration is reasonably low at ~12%, but expected to reach 15% by 2013 and 24% by 2015. Availability of US$50 smartphones could be a key factor in driving the take-up rates and in turn data usage. Continue reading State of Mobile Data in Indonesia, Malaysia, Philippines, Singapore, Thailand