Tag Archives: Telecom-Tariff-War

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 Airtel and Vodafone have withdrawn the Maximum benefits extended to consumers during the telecom tariff war of 2010-11.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

Idea Double Digit Revenue Growth to Continue; New Entrants Aggression Ends;

Idea Cellular Management in an Investors call said that revenue growth for Idea will remain strong over the next 12 – 18 months despite regulatory concerns. Pricing power has returned to to incumbents with increase in minutes market share and increased contribution from non-voice revenues.

Idea’s Analytics team probably expects some decline in Minutes of Usage [MoU] however, this does not essentially translate into decline in Revenues. Data suggests that as the tariff war came to an end in 2011, the industry’s revenue growth increased from 8-10% to 16%. It is inevitable that tariffs will inch up for business models to sustain as costs could not come down further. This is not a cohesive action, Continue reading Idea Double Digit Revenue Growth to Continue; New Entrants Aggression Ends;

Wireless Tariff War – Scope for More + Multi SIM a Mass Reality India

At the beginning of this quarter, Reliance Communications took a daredevil step from the incumbent pack and introduced the Simple Reliance Tariffs forcing others to have a re-look at their Tariff plans and thus began a full fledged Mobile Tariff War. I then told that Simple Reliance is a great tariff plan and their was scope for more innovative tariff structures. To satiate my judgment, I ran a small survey on this blog for over 2 weeks and broadly 128 voters think like I did 🙂

RCom Reveals – Wireless Revenues Included Handset Sales – Discrepancy in Revenues Explained

Breaking News in Global MediaThis has come as a surprise to me and most of the analysts in the call that Reliance Communications booked revenues by sales of proprietary CDMA handsets as Wireless Revenues. JeeZ!!!! This means actual Wireless Services Revenues far below competitors ? Since Tata Indicom is unlisted, we don’t know about it. But Airtel & Vodafone did bundle handsets, did they also do the same ? This explain the discrepancy in Wireless Revenues reported by the company to BSE & NSE and that reported by TRAI. [ Anyway, I am not an accounting major to audit and pin-point, but you understand the practice followed here] More excerpts from the call as follows, [My comments in Brackets] Continue reading RCom Reveals – Wireless Revenues Included Handset Sales – Discrepancy in Revenues Explained

Airtel Freedom Plus – 20% to 44% Expensive than Simple Reliance Tariffs

Yesterday at the Analyst call, Bharti Airtel executives denied to cut call tariffs. However, shortly after they announced Airtel Freedom Plan which is the Biggest Marketing Gimmick by Bharti Airtel.

Airtel is clearly worried about two competitors – Reliance Communications and Tata DoCoMo and hence the new tariff plan. Airtel Freedom Plan is based on the core themes of DoCoMo’s Per Second Billing and RCom’s Simple Tariffs which the customers are demanding. Airtel’s marketing team designed this Continue reading Airtel Freedom Plus – 20% to 44% Expensive than Simple Reliance Tariffs