Vodafone India’s results suggest some company specific factors at play while also serving to highlight some cautionary aspects pertaining to the Indian wireless industry. Several metrics appear subdued relative to peers, be it mobile subscriber adds, data subscriber adds, EBITDA margins voice usage, all of which reflects in softening ARPUs and slowing revenue growth.
Vodafone has specifically called Continue reading Cracks Appear in Vodafone’s India Operations
Vodafone believes 2G, 3G and 4G will co-exist in India for years to come and believes multiple networks can help address the needs of all strata of customers and is cost efficient. Management highlighted past failure of a 3G-only network. Vodafone is increasing its own 3G network footprint from nine circles to 16, reducing the dependence on roaming, which will help improve quality and lower costs. Vodafone is also working aggressively to launch LTE in five key markets that account for 40-50% of its data revenue by March 2016. [We think this is a bit laid-back Continue reading 2G, 3G & 4G Will Co-Exist in India – Vodafone
Vodafone sees scope for further market growth. India remains a young market, with 50% real penetration. The top 3 operators are taking market share overall, (ca90% of market revenue increase), and also Vodafone sees towers (Indus) as a source of value.
Vodafone is of the view that post the recent spectrum auction, all of the operators (large and small) believed that voice prices would likely rise, partly in order to offset the high costs of spectrum (and debt-laden balance sheets). This can of course occur without headline price increases, as the realised rate is significantly below advertised due to discounting, which will likely decrease in our view. The regulator also agreed with this logic. Continue reading Vodafone India Strategy – Banks on Tariff Hike, Mobile Data Growth – RJio No Threat
Vodafone India’s 3Q confirms sector’s healthy trends – sustained minutes growth, flat voice rev/min & strong data uptake. Traffic grew 6.5%yoy (5%yoy for Airtel) with flat voice rev/min. Idea, in contrast, had reported stronger mins growth (18% yoy) but with a 6% yoy decline in voice rev/min. Vodafone’s Blended ARPU is at Rs 189 ahead of Idea’s Rs 179 and trailing Airtel’s Rs 202 but has the highest industry ARPM of Rs 0.59 / Minute. Continue reading Vodafone India 3Q – Flat Voice Rev/min, Data Saga SuperHit
There is a strong industry collaboration between operators, handset vendors and component makers to accelerate TD-LTE momentum. One must note that the focus is on multi-mode solutions, given the majority of operators will launch TD-LTE as an adjunct to another service. LG Electronics noted that it has worked closely with China Mobile and Qualcomm on stabilizing the LTE network.
Intel and Broadcom have announced TD-LTE Modems. Qualcomm has announced its new RF360 chip that offers support for seven cellular modes (including TD-LTE) and all 40 cellular radio bands currently in use.
On the Mobile Handset Side, Samsung and Nokia have committed to a Dual-mode FD / TD-LTE handset due by mid-2013. The Notable support comes from LG Electronics which holds large number of 4G Mobile SmartPhone Patents. LG has demonstrated a modified Optimus G TD-LTE phone at Mobile World Congress. While it did not confirm a launch date, it pledged a full line of TD-LTE handsets for China Mobile, including both high-end and low-end models.
Bharti Airtel Chairman Mr.Sunil Mittal on India’s First 4G LTE Network
- Mittal stressed that TD-LTE will be a key part of the solution to India’s broadband challenge as the fixed-line infrastructure will never be strong
- 3G take off a bit slower than expected due in part to the limited supply of low-cost smartphones – he suggested they need to get handset supply at the USD50 level
- TD-LTE signal propagation at 2.3GHz has been worse than they expected and that the industry needs to come up with cheaper, small-cell solutions to make the technology viable in markets such as India
- Airtel 4G has 20,000 customers on TD-LTE, with no churn, as the user experience is a huge step up from weak wireline services
So if you are a RF / Networking Major, you should be thinking out of the the box to design Small Cell Data Network Solutions for the price sensitive Indian market. Any other thoughts to take the go Affordable Broadband in India ?
The Results of 1800MHz Spectrum Auction 2012 are as I had expected – Failure in Delhi, Mumbai, Karnataka etc. Other important highlights of the Auction are as follows,
- Of the 18 circles that saw bids, the winning price did not exceed the reserve price for 17 circles, means Demand was Less Than or Equal to Supply.
- Only Bihar saw excess demand and thus the price discovered was 9.2% higher than reserve price
- Telenor [erstwhile Uninor] secured 5 MHz of spectrum in Andhra Pradesh, UP(East), UP(West), Bihar, Gujarat and Maharashtra by paying Rs 40.2 bn. The company will cease operations in circles Mumbai, Kolkata and West Bengal, where it was not awarded licenses. Telenor has evinced interest to operate in the lucrative Mumbai circle and will probably bid again once the reserve prices are lowered.
Continue reading 1800Mhz Spectrum Auction Results as Expected; Vodafone Surprise Buyer rather than Idea Cellular