Tag Archives: Telecom-Tariff-War

Can Idea Cellular combat Jio / Airtel’s Free Voice onslaught ?

Idea Combat Jio OnslaughtIdea Cellular has a higher rural exposure than other larger telcos. Since the rural consumers have greater usage of plain 2G Voice, Idea will be more vulnerable in case the trend of unlimited voice plans pick up (Airtel followed Jio in launching unlimited packages). Reliance Jio has further highlighted the launch of affordable VoLTE mobile handsets at price points of less than Rs 2,000 targeting the mass rural consumers.

Idea’s exposure to high-end urban consumer Continue reading Can Idea Cellular combat Jio / Airtel’s Free Voice onslaught ?

What Factors Influence Mobile Broadband Tariffs ?

Factors Determine Mobile Data Tariffs5 Years after launch of 3G Mobile Broadband Services, adoption by consumers is far from satisfactory. Smartphone penetration levels, 3G/4G penetration levels, data volumes per subscriber and the pricing of data of data per MB along the pricing curve are therefore the key drivers behind revenue growth market-by-market.

Smartphone and 4G penetration levels are in part driven by the extent of the rollout of 3G and 4G networks, but the other key driver is affordability, namely GDP levels and the price of handsets. GDP per capita levels continue to rise a bit modestly in the last 2 years and the continued decline in Continue reading What Factors Influence Mobile Broadband Tariffs ?

How will Indian Telecom market Progress Post Jio Launch ?

Indian Telecom Post Jio LaunchReliance Jio’s launch will accelerate consolidation leading smaller telcos to exit market overtime. Currently the top 3 telcos have 70% of total market share with remaining 8-9 telcos sharing the remaining 30% market share. The key value proportion of smaller telcos to consumers has been cheaper offerings than larger telcos but sometimes with inferior coverage. With Jio likely offering cheaper tariffs than existing telcos in the market, we believe that it would lead to subs churning from Jio. Larger telcos may be able to Continue reading How will Indian Telecom market Progress Post Jio Launch ?

Mobile Call Termination Charges Drop 30% – No Tariff War Soon

TRAIThe 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

Mobile Call Tariff Hike in Feb-13, Revenue Trends Look Up

Mobile Tariff Hikes IndiaTariff 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