The cash crunch in the economy, driven by the government’s recent demonetisation of old Rs500 / 1,000 notes will impact telecom operators on several fronts. The move will impact prepaid subscriber recharges more (~80% of sector revenue and 95% of subscribers) as these are largely in cash. Industry channel checks suggest that there has been a sharp 20-50% drop in prepaid recharges since the demonetisation announcement as subscribers Continue reading Jio 4G & DeMonetisation – Double Edge Sword Attack on Airtel, Vodafone, Idea Lobby
An analysis of the pre-paid mobile tariffs data suggest that operators across circles continue to withdraw discounts/ free minutes. The trend is visible across the board – New Entrants like Aircel, Tata DoCoMo as well as incumbents like Airtel,Vodafone and Idea have shifted their attention to Revenue Market share. The intensity of change has reduced in the seasonally weak quarter with fewer tariff hikes.
Indian operators are adopting a Continue reading Indian Mobile Operators Hike Tariff for Improved Realization in Weak Quarter
Indian Mobile Companies have shifted focus from gaining subscriber market share to improving profitability. Given the industry consolidation, we expect pricing to improve over the next few quarters. Airtel, Vodafone and Idea [A-Vo-Id]continue to gain or maintain revenue market share while BSNL & Reliance Communications are the losers in this race so far.
On a yoy basis, the overall industry revenue increased 6% in Q4 [March Quarter]. Idea/Airtel/Vodafone grew revenues 12%/10%/8%, respectively, which is higher than the industry growth rate, while Uninor/RCOM/Tata DoCoMo’s revenues declined 18%5%/1%. As illustrated in our previous article, larger telcos will raise tariffs as they have the bargaining power and will likely gain market share as smaller telcos continue to be marginalized. Continue reading New Mobile Operators Fail to Make Impact in Revenue Market – A-Vo-Id Group Maintain Lead