Asia’s Leading Innovative Telecom Service provider, NTT DOCOMO has announced its plans of exercising the option of selling its entire 26.5% stake in Tata Teleservices. The price is going to be higher of 50% of the acquisition price, which amounts to INR72.5bn, or fair market price.
DOCOMO’s potential exit again highlights the widely held view of ‘implicit consolidation’ in the market, whereby smaller operators aren’t able to compete, and are still Continue reading Corruption & Congress’ 2G Spectrum Scam Cited as Reason for NTT DoCoMO’s Exit from India
The Management of Tata DoCoMo has indicated that pricing rationality is prevailing in the sector with almost all operators withdrawing discounts / free minutes. These changes are already visible in the company’s own RPM realisations. There has been no change to usage patterns all through these tariff changes so far, explained management. While the industry will see an uplift in RPM, the tariff differential between the market leaders and smaller players could remain, said management.
While there are negligible changes on headline tariffs (barring some instances of call rates 1.0p/sec going up to 1.5p/sec), a lot of action is taking place on the promotions/discounts. These actions are in the form of reduction in validity, reduction in free minutes, reduction in amount of discount offered, withdrawal of on-net offers etc.
While all operators in the industry are withdrawing discounts with the aim Continue reading Tata DoCoMo Shows Signs of RPM Improvement; Investing in Building Wi-Fi Network
First, my apologies that I couldn’t cover neither Idea Cellular nor Bharti Airtel Results & Analyst Call as I am stuck in Mumbai for some personal work. However, going through the data, I find it interesting to note that Idea Cellular has punched straight into the face of Bharti Airtel in tems of Traffic Growth for the quarter ending Dec-2009.
Idea’s minutes grew 15% QoQ much faster than Bharti (6.7%) even after adjusting for lower base and the impact of J&K ban on the latter. The reasons could be Continue reading How Idea Managed to beat Bharti Airtel in Traffic Growth
The management of Bharti Airtel hosted Analyst call this afternoon and continued to reaffirm their stand that Tariff cut is uncalled for by them. Mr. Akhil Gupta said,
As seen time and again, STRONGER Player do emerge winner even though they suffer in short term. Lost to new operators will be irreparable. We are Truly Integrated Telco with 35% of EBITDA from non-wireless business. We acknowledge that price is important but as market leader, we do not find any reason to match Lowest Common Denominator. We may suffer temporary setback in Revenue / profit Growth, but in the long run we have a great opportunity.
Mr. Manoj Kohli said, Continue reading Bharti Airtel – Banking on Brand + Coverage + Won’t Match Lowest Tariffs