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 ?
The Telecom Regulatory Authority of India (TRAI) has reduced Termination Charges (TC) for all calls originating from and terminating to Wireless networks to INR0.14 per minute from INR0.20 per minute. In 2009, the Call Termination charges were revised from Rs 0.30 / Minute to rs 0.20 / Minute. As larger operators [A-Vo-Id Operators] are net receivers of these charges, it will have a marginal negative impact on incumbent operators. Direct impact of termination rate cut depends on the balance of off-net incoming and off-net outgoing minutes for an operator. We do note that the net interconnect revenues are not material for the incumbents even as net interconnect costs may be material for some of the challengers. Continue reading Mobile Call Termination Charges Drop 30% – No Tariff War Soon
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
With the end of Telecom tariff War in H2-2012, operators have been continuously reducing benefits on Pre-Paid Mobile STVs / Minutes STD Packs to boost their Revenue Per Minute. In this article I’ll illustrate few examples of how RPM has increased to operators in some cases as much as 100% just within a span of 4 months. Continue reading Reducing Benefits on STVs / STD Minutes Packs in Pre-paid Mobile MoM Basis
Tariff hikes which started as baby steps in Oct and Nov 2012 have now spread wider and are bolder. Wireless Operators have hiked mobile Call Tariffs across the board by reducing Minutes in the Minutes Pack or other benefits like Validity, SMS or Talktime on STD Packs. Airtel and Vodafone have withdrawn the Maximum benefits extended to consumers during the telecom tariff war of 2010-11. Idea Cellular and Reliance Communications have also hiked tariffs thus showing the pressure the companies have on profitability. Continue reading Mobile Call Tariff Hike in Feb-13, Revenue Trends Look Up
Telecommunications Industry by design is a capital intensive business and with rising Spectrum Prices, the CAPEX is still higher. World over the Telecom industry operates in Lobby or in an oligarchic setup and is no different in India. One thing is certain, everybody from the GSM incumbents to potential entrants like Reliance Infotel are using every means to manipulate Telecom Policy. But with 2G Spectrum Scam in the public domain, any large scale manipulation is ruled out as it will lead to series of Court Room Battles.
The need to increase Mobile Call Tariffs gets stronger as the due date for remitting additional spectrum charge nears. One can expect a sustained and calibrated, tariff hikes. The key questions are Continue reading How much Mobile Call Tariff Hike Required to Offset Regulatory burden in India ?