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Category: Telecom

  • Marans discharged, SC ‘no’ to stay, hearing on Wed

    Marans discharged, SC ‘no’ to stay, hearing on Wed

    MUMBAI: The apex court, as of now, refused to grant a stay on the CBI court order discharging the accused in the 2G spectrum scam. The case will be heard again in the Supreme Court next Wednesday.

    The Enforcement Directorate (ED) had moved the court against the discharge of former union minister Dayanidhi Maran, his brother Kalanithi Maran and others in the Aircel-Maxis case. The ED also urged the court not to release the properties of the accused attached in the case. 

    The designated court earlier discharged the former telecom minister, and Kalanithi, and others in the Maxis-Aircel deal case filed by enforcement directorate (ED) and the CBI, PTI reported. Special judge OP Saini, who is especially dealing with the 2G spectrum scam cases and related investigation, passed this order.

    All the accused had denied the charges levelled against them by the law-enforcement agencies. 

    The order may not have any bearing on T Ananda Krishnan and Ralph Marshall as the court already separated the trial against them.

    The CBI had registered a case Krishnan and Marshall, Astro All-Asia Networks, UK, Sun Direct TV, Maxis Communications, Malaysia, South Asia Entertainment Holdings, Malaysia and late JS Sarma (then additional secretary – telecom). They were charge sheeted for alleged offences to be punishable under section 120-B of IPC and under concerned provisions of the Prevention of Corruption Act.

    ED had chargesheeted the Maran brothers, Kalanithi’s wife Kavery, South Asia FM managing director K Shanmugam and Sun Direct TV under provisions of the Prevention of Money Laundering Act (PMLA). The court discharged South Asia Entertainment Holdings and Sun Direct TV apart from the Maran brothers.

    Also Read:

    Aircel-Maxis case: 2G court seeks to speed trial against Marans

  • Jio becomes top ISP, Wireline growth retards overall broadband internet subs fall in Nov-16

    Jio becomes top ISP, Wireline growth retards overall broadband internet subs fall in Nov-16

    BENGALURU: MukeshAmbani’s Reliance JioInfocomm Limited (Jio) replaced Sunil Mittal’s Bharti Airtel Limited (Airtel) as the largest internet services provider in the country. All the other players in the top 5 wireless internet subscriber list based on subscribers lost subscribers to the Jio juggernaut.

    However, India witnessed a 0.07 percent fall in broadband internet subscriber base during the month ended 30 November 2016 (Nov-16) to 21.826 crore as compared to 21.842 crore in Oct-16(month ended 31 October 2016).Wireless internet subscribers that access the internet through mobile devices (phones and dongles) declined in Nov-16 to 19.961 crore from 19.90 crore in Oct-16.

    Four of the top five wireline broadband internet service providers in India contributed 1.2 lakh (92.31 percent) subscribers of the 1.3 lakh wireline subscribers added across India during Nov-16 and hence retarded the fall in internet subscribers to some extent. As per data submitted to the Telecom Regulatory Authority of India (TRAI) the total wireline broadband subscriber base grew 0.69 percent to 180.6 lakh in Nov-16 from 179.3 lakh in Oct-16). The fifth player (fourth in the pecking order in terms of number of wireline broadband internet subscribers), the public sector Mahanagar Telecom Nigalm Limited (MTNL) saw its subscriber base erode by 10,000 to 10.5 lakh in Nov-16.

    Among the 5 top wireline broadband internet players in India, the public sector telecom player Bharat Sanchar Nigam Limited (BSNL) leads by far with 99.5 lakh total number of wireline broadband subscribers as on Nov-16. However BSNL had seen its broadband subscriber base shrink by 80,000 in CY-16 until Aug-16. Since Sep-16, BSNL has added 110,000 subscribers. The largest private sector wireline broadband internet services player Airtel had 20.3 lakh subscribers as on 30 November 2016, ACT with 11.4 lakh subscribers was next and was followed by the other public sector player – MTNL with 10.5 lakh subscribers.  You Broadband (You BB) with 6 lakh subscribers was the fifth. Overall, wired broadband subscribers in India in Nov-16 grew 0.73 percent month-on-month (MoM), while the five top players grew by 0.75 percent.

    Leading the growth in subscriber additions in CY-16 until Nov-16 are private wired broadband players Bharti Airtel (Airtel, 80,000 additions in Nov-16) and regional player Atria Convergence Technologies Pvt Ltd (ACT, 20,000 additions in Nov-16) with additions of 3.6 lakh and 2.8 lakh subscriber additions respectively in CY-16. Airtel’s wired broadband subscriber base grew 21.56 percent, while ACT’s base grew by 32.56 percent during the same period (CY-16 until Nov-16). In CY-15 (1 January 2015 to 31 December 2015), Airtel had added 2.6 lakh wired broadband subscribers and grown by 18.44 percent, while ACT had added 2.5 lakh subscribers and had grown at a blazing 40.98 percent. By Sep-16, Airtel had already exceeded the number of subscribers it had added in CY-15, while ACT crossed its CY-15 performance in Oct-16. Hence, by the end of 2016, with reports for Dec-16 to be published as yet, the two players should add a lot more subscribers than they did in CY-15.

    While Airtel is a national level player, ACT is a regional player with operations in South India, hence probably making ACT the largest private wireline broadband internet services player in South India. ACT has replaced the public sector MTNL at third place, pushing the latter to fourth spot in Aug-16 in terms of number of subscribers. Another private player among the top five – You Broadband (You BB) has added 90,000 subscribers (17.65 percent growth) in the current year until Nov-16. 

    Please refer to Fig 1 below:

    The top five players have had a slower rate of growth as compared to the all India growth in CY-16 until Nov-16. The share of the top five players among all India wired broadband subscriber additions has fallen in CY-16 until Nov-16 from 85.28 percent as on 1 January 2016 to 81.78 percent as on 30 November 2016. The share of these players was 88.45 percent as on 1 January 2015.

    Month-on-month (m-o-m), the all India wired broadband subscriber base witnessed the second highest growth in CY-16 until Sep-16 in Aug-16 at 1.03 percent, while the top 5 players had a growth of 0.28 percent in that month. 

    It is interesting to note that in percentage terms, while the All India m-o-m wireline broadband internet subscriber growth rate shows a decline the top five players show an increasing growth rate trend as indicated by the broken brown and red lines in the figure below. It may be noted further that the percentage numbers below are indicative and based on numbers rounded off to nearest 10,000, hence may differ from the number mentioned above (0.69 percent growth as opposed to 0.73 percent growth in the graph below for Nov-16).

    Other wireline broadband players in India

    MSOs’ in India have started providing internet services on the back of their television cable networks using DOCSIS technology. In general, they have started reporting double and triple digit year-over-year (y-o-y) increase in internet subscribers and revenue. The television cable players see broadband services improving their Average Revenue per User (ARPU) numbers. Three of the major MSOs and a regional MSO – Hathway, Siti Networks Limited, Den Networks Limited , Ortel Communications Limited respectivelywhose results are available in the public domain have been showing steady growth in their broadband segment over the past few quarters. 

    However, as per the data for Oct-16 and Nov-16, the contribution by other wireline broadband ISPs’ is small, just 10,000 subscribers per month were added by all the other players during these months.

    Overall broadband subscriber numbers for November 2016 including wireless and mobile

    The top five service providers constituted 82.39 percent market share of the totalbroadband subscribers at the end of Nov-16. These service providerswere Reliance JioInfocom Limited with 52.23 million or 52.23 crore (35.94 million or 3.594 crore in Oct-16);Bharti Airtel (43.93 million or 4.393 crore in Nov-16, 48.17 million or 4.817 crore in Oct-16); Vodafone (34.88 million or 3.488 crore in Nov-16, 40.19 million or 4.019 crore in Oct-16);Idea Cellular which saw a decline in subscribers (for the second month in a row) from 29.76 million (2.976 crore)  to 28.40 million or 2,84 crore;and BSNL which also saw its subscriber base decline once again from 21.46 million or 2.146 crore to 20.39 million or 2.039 crore. Reliance Communications Group which had (16.74 million 1.674 crore) in Sep-16 had already exited the top five list in Oct-16

    TRAI’s definition of broadband is internet download speeds greater than or equal to 512 Kpbs.

    Notes:(1) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR).The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

    (2) TRAI reports indicate data in millions of numbers up to 2 decimal places. Hence it is assumed in this report that a figure of 0.51 million (5.1 lakh) subscribers for You BB for Dec-2015 would be granular to the nearest 10,000. While percentages have been mentioned up to two decimal places, the accuracy may vary, depending upon the exact number.
    (3) MSOs’ have a number of subsidiaries and alliances, hence broadband numbers are split as applicable. The consolidated subscription numbers of these entities could be larger. Hathway is a case in point.

  • Jio becomes top ISP, Wireline growth retards overall broadband internet subs fall in Nov-16

    Jio becomes top ISP, Wireline growth retards overall broadband internet subs fall in Nov-16

    BENGALURU: MukeshAmbani’s Reliance JioInfocomm Limited (Jio) replaced Sunil Mittal’s Bharti Airtel Limited (Airtel) as the largest internet services provider in the country. All the other players in the top 5 wireless internet subscriber list based on subscribers lost subscribers to the Jio juggernaut.

    However, India witnessed a 0.07 percent fall in broadband internet subscriber base during the month ended 30 November 2016 (Nov-16) to 21.826 crore as compared to 21.842 crore in Oct-16(month ended 31 October 2016).Wireless internet subscribers that access the internet through mobile devices (phones and dongles) declined in Nov-16 to 19.961 crore from 19.90 crore in Oct-16.

    Four of the top five wireline broadband internet service providers in India contributed 1.2 lakh (92.31 percent) subscribers of the 1.3 lakh wireline subscribers added across India during Nov-16 and hence retarded the fall in internet subscribers to some extent. As per data submitted to the Telecom Regulatory Authority of India (TRAI) the total wireline broadband subscriber base grew 0.69 percent to 180.6 lakh in Nov-16 from 179.3 lakh in Oct-16). The fifth player (fourth in the pecking order in terms of number of wireline broadband internet subscribers), the public sector Mahanagar Telecom Nigalm Limited (MTNL) saw its subscriber base erode by 10,000 to 10.5 lakh in Nov-16.

    Among the 5 top wireline broadband internet players in India, the public sector telecom player Bharat Sanchar Nigam Limited (BSNL) leads by far with 99.5 lakh total number of wireline broadband subscribers as on Nov-16. However BSNL had seen its broadband subscriber base shrink by 80,000 in CY-16 until Aug-16. Since Sep-16, BSNL has added 110,000 subscribers. The largest private sector wireline broadband internet services player Airtel had 20.3 lakh subscribers as on 30 November 2016, ACT with 11.4 lakh subscribers was next and was followed by the other public sector player – MTNL with 10.5 lakh subscribers.  You Broadband (You BB) with 6 lakh subscribers was the fifth. Overall, wired broadband subscribers in India in Nov-16 grew 0.73 percent month-on-month (MoM), while the five top players grew by 0.75 percent.

    Leading the growth in subscriber additions in CY-16 until Nov-16 are private wired broadband players Bharti Airtel (Airtel, 80,000 additions in Nov-16) and regional player Atria Convergence Technologies Pvt Ltd (ACT, 20,000 additions in Nov-16) with additions of 3.6 lakh and 2.8 lakh subscriber additions respectively in CY-16. Airtel’s wired broadband subscriber base grew 21.56 percent, while ACT’s base grew by 32.56 percent during the same period (CY-16 until Nov-16). In CY-15 (1 January 2015 to 31 December 2015), Airtel had added 2.6 lakh wired broadband subscribers and grown by 18.44 percent, while ACT had added 2.5 lakh subscribers and had grown at a blazing 40.98 percent. By Sep-16, Airtel had already exceeded the number of subscribers it had added in CY-15, while ACT crossed its CY-15 performance in Oct-16. Hence, by the end of 2016, with reports for Dec-16 to be published as yet, the two players should add a lot more subscribers than they did in CY-15.

    While Airtel is a national level player, ACT is a regional player with operations in South India, hence probably making ACT the largest private wireline broadband internet services player in South India. ACT has replaced the public sector MTNL at third place, pushing the latter to fourth spot in Aug-16 in terms of number of subscribers. Another private player among the top five – You Broadband (You BB) has added 90,000 subscribers (17.65 percent growth) in the current year until Nov-16. 

    Please refer to Fig 1 below:

    The top five players have had a slower rate of growth as compared to the all India growth in CY-16 until Nov-16. The share of the top five players among all India wired broadband subscriber additions has fallen in CY-16 until Nov-16 from 85.28 percent as on 1 January 2016 to 81.78 percent as on 30 November 2016. The share of these players was 88.45 percent as on 1 January 2015.

    Month-on-month (m-o-m), the all India wired broadband subscriber base witnessed the second highest growth in CY-16 until Sep-16 in Aug-16 at 1.03 percent, while the top 5 players had a growth of 0.28 percent in that month. 

    It is interesting to note that in percentage terms, while the All India m-o-m wireline broadband internet subscriber growth rate shows a decline the top five players show an increasing growth rate trend as indicated by the broken brown and red lines in the figure below. It may be noted further that the percentage numbers below are indicative and based on numbers rounded off to nearest 10,000, hence may differ from the number mentioned above (0.69 percent growth as opposed to 0.73 percent growth in the graph below for Nov-16).

    Other wireline broadband players in India

    MSOs’ in India have started providing internet services on the back of their television cable networks using DOCSIS technology. In general, they have started reporting double and triple digit year-over-year (y-o-y) increase in internet subscribers and revenue. The television cable players see broadband services improving their Average Revenue per User (ARPU) numbers. Three of the major MSOs and a regional MSO – Hathway, Siti Networks Limited, Den Networks Limited , Ortel Communications Limited respectivelywhose results are available in the public domain have been showing steady growth in their broadband segment over the past few quarters. 

    However, as per the data for Oct-16 and Nov-16, the contribution by other wireline broadband ISPs’ is small, just 10,000 subscribers per month were added by all the other players during these months.

    Overall broadband subscriber numbers for November 2016 including wireless and mobile

    The top five service providers constituted 82.39 percent market share of the totalbroadband subscribers at the end of Nov-16. These service providerswere Reliance JioInfocom Limited with 52.23 million or 52.23 crore (35.94 million or 3.594 crore in Oct-16);Bharti Airtel (43.93 million or 4.393 crore in Nov-16, 48.17 million or 4.817 crore in Oct-16); Vodafone (34.88 million or 3.488 crore in Nov-16, 40.19 million or 4.019 crore in Oct-16);Idea Cellular which saw a decline in subscribers (for the second month in a row) from 29.76 million (2.976 crore)  to 28.40 million or 2,84 crore;and BSNL which also saw its subscriber base decline once again from 21.46 million or 2.146 crore to 20.39 million or 2.039 crore. Reliance Communications Group which had (16.74 million 1.674 crore) in Sep-16 had already exited the top five list in Oct-16

    TRAI’s definition of broadband is internet download speeds greater than or equal to 512 Kpbs.

    Notes:(1) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR).The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

    (2) TRAI reports indicate data in millions of numbers up to 2 decimal places. Hence it is assumed in this report that a figure of 0.51 million (5.1 lakh) subscribers for You BB for Dec-2015 would be granular to the nearest 10,000. While percentages have been mentioned up to two decimal places, the accuracy may vary, depending upon the exact number.
    (3) MSOs’ have a number of subsidiaries and alliances, hence broadband numbers are split as applicable. The consolidated subscription numbers of these entities could be larger. Hathway is a case in point.

  • Vodafone confirms possibility of merger with Idea

    Vodafone confirms possibility of merger with Idea

    NEW DELHI: Vodafone Group Plc today confirmed that it was in discussions with the Aditya Birla Group about an all share merger of Vodafone India (excluding Vodafone’s 42% stake in Indus Towers) and Idea.

    Vodafone group general counsel and company secretary Rosemary Martin said, “Any merger would be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone deconsolidating Vodafone India.”

    “There is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction.”

    Reacting to recent media speculation regarding a potential combination of Vodafone India and Idea Cellular (“Idea”), she said: “This announcement contains inside information.”

    Although, earlier, there were reports that Vodafone may be seeking merger with Idea or Jio, experts believed a merger with the former was a possibility. Vodafone had launched several tariffs to browbeat competition from Airtel and Jio. The Indian unit is reportedly seeking a merger with one of the top telecom companies following intensified competition. Vodafone may be keen for a possible tie-up with Idea, Jio or another of the top three providers. Jio’s aggressive tariffs and heavy investments started impacting competitor a few weeks after it entered.

    Also read:  Darwin effect: 3-4 telcos may Jio after potential M&As

  • Vodafone confirms possibility of merger with Idea

    Vodafone confirms possibility of merger with Idea

    NEW DELHI: Vodafone Group Plc today confirmed that it was in discussions with the Aditya Birla Group about an all share merger of Vodafone India (excluding Vodafone’s 42% stake in Indus Towers) and Idea.

    Vodafone group general counsel and company secretary Rosemary Martin said, “Any merger would be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone deconsolidating Vodafone India.”

    “There is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction.”

    Reacting to recent media speculation regarding a potential combination of Vodafone India and Idea Cellular (“Idea”), she said: “This announcement contains inside information.”

    Although, earlier, there were reports that Vodafone may be seeking merger with Idea or Jio, experts believed a merger with the former was a possibility. Vodafone had launched several tariffs to browbeat competition from Airtel and Jio. The Indian unit is reportedly seeking a merger with one of the top telecom companies following intensified competition. Vodafone may be keen for a possible tie-up with Idea, Jio or another of the top three providers. Jio’s aggressive tariffs and heavy investments started impacting competitor a few weeks after it entered.

    Also read:  Darwin effect: 3-4 telcos may Jio after potential M&As

  • BSNL violating TRAI’s IUC norms, complains COAI

    BSNL violating TRAI’s IUC norms, complains COAI

    NEW DELHI: The Cellular Operator Association of India (COAI) has approached the Telecom Regulatory Authority of India against the state-owned Bharat Sanchar Nigam Ltd’s (BSNL) new limited fixed mobile telephony app-based calling service that virtually turns mobiles into a cordless phone.

    The new service works in sync with landlines to make and receive calls within home premises.

    Claiming it was like the “in-principle same version of their fixed mobile telephony (FMT) services” launched last year and subsequently withdrawn, COAI members want TRAI to direct BSNL to withdraw the new service. BSNL has so far marketed its service as “distinct”.

    Interestingly, Reliance Jio has not joined in as it claims to have divergent views.

    While launching the new service in mid-January, BSNL had stated that the latest limited Fixed Mobile Telephony (FMT) service is “different” from the contentious Fixed Mobile Telephony service it had announced last year. The PSU was subsequently forced to put on hold the service following opposition from cellular operators.

    The operators say the new service is disguised as a Public Switched Telephone Network (PSTN) service and violation of numbering plan and breach of licence conditions.

    In its letter to TRAI, COAI has also alleged that BSNL’s service represents evasion and bypass of Interconnect Usage Charges (IUC) in the form of termination charges. “We understand that the new service will use fixed line Caller Line Identification for making calls from mobiles and currently no termination charges are applicable for calls to and from fixed line in terms of TRAI’s prevailing IUC regulation,” COAI said.

    If the service is allowed, other operators with landline number series may also start using the methodology for saving on IUC leading to major revenue implications, COAI has argued.

    “In light of the serious concerns … we request your kind intervention in issuing an immediate direction to BSNL for withdrawing this app-based calling service,” COAI has said.

    While putting its service on hold, BSNL chairman Anupam Shrivastava had said the earlier service allowed customers on roaming in India and overseas to connect their landlines through mobile and make calls through them, but the new service is restricted within the home premises.

    “Landline subscribers find it inconvenient to fetch the contact details from mobiles and then dial the number on fixed line … This service will turn mobile handset into a cordless device within the home premises, which means that customers can still avail the attractive landline tariffs of BSNL,” Shrivastava had said.

    Also Read:

    BSNL launches FMT & Ditto TV; 4G planned this year

    Fazed by expensive 4G spectrum, BSNL gifting Kerala 1k hotspots

  • BSNL violating TRAI’s IUC norms, complains COAI

    BSNL violating TRAI’s IUC norms, complains COAI

    NEW DELHI: The Cellular Operator Association of India (COAI) has approached the Telecom Regulatory Authority of India against the state-owned Bharat Sanchar Nigam Ltd’s (BSNL) new limited fixed mobile telephony app-based calling service that virtually turns mobiles into a cordless phone.

    The new service works in sync with landlines to make and receive calls within home premises.

    Claiming it was like the “in-principle same version of their fixed mobile telephony (FMT) services” launched last year and subsequently withdrawn, COAI members want TRAI to direct BSNL to withdraw the new service. BSNL has so far marketed its service as “distinct”.

    Interestingly, Reliance Jio has not joined in as it claims to have divergent views.

    While launching the new service in mid-January, BSNL had stated that the latest limited Fixed Mobile Telephony (FMT) service is “different” from the contentious Fixed Mobile Telephony service it had announced last year. The PSU was subsequently forced to put on hold the service following opposition from cellular operators.

    The operators say the new service is disguised as a Public Switched Telephone Network (PSTN) service and violation of numbering plan and breach of licence conditions.

    In its letter to TRAI, COAI has also alleged that BSNL’s service represents evasion and bypass of Interconnect Usage Charges (IUC) in the form of termination charges. “We understand that the new service will use fixed line Caller Line Identification for making calls from mobiles and currently no termination charges are applicable for calls to and from fixed line in terms of TRAI’s prevailing IUC regulation,” COAI said.

    If the service is allowed, other operators with landline number series may also start using the methodology for saving on IUC leading to major revenue implications, COAI has argued.

    “In light of the serious concerns … we request your kind intervention in issuing an immediate direction to BSNL for withdrawing this app-based calling service,” COAI has said.

    While putting its service on hold, BSNL chairman Anupam Shrivastava had said the earlier service allowed customers on roaming in India and overseas to connect their landlines through mobile and make calls through them, but the new service is restricted within the home premises.

    “Landline subscribers find it inconvenient to fetch the contact details from mobiles and then dial the number on fixed line … This service will turn mobile handset into a cordless device within the home premises, which means that customers can still avail the attractive landline tariffs of BSNL,” Shrivastava had said.

    Also Read:

    BSNL launches FMT & Ditto TV; 4G planned this year

    Fazed by expensive 4G spectrum, BSNL gifting Kerala 1k hotspots

  • Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    BENGALURU: Indian telecom major Bharti Airtel Limited (Airtel) reported 3 percent decline in total revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter. The drop was partially affected by a drop in revenue due to divestments of its Africa operating units, tower assets sale and merger of Bangladesh operations. However, like in the previous quarter, Reliance Jio’s entry has resulted in a drop in the company’s India mobile revenues which contribute a lion’s share to overall revenue.

    Airtel MD and CEO of India and South Asia regions Gopal Vittal said, “The quarter has seen turbulence due to the continued predatory pricing by a new operator. The present termination costs at 14 paise which are well below cost has resulted in a tsunami of minutes terminating into our network. This has led to an unprecedented year on year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector. At the same time our commitment to provide a superior experience to our customers has led to revenue market share crossing a lifetime high of 33 percent. Airtel revenues grew by 1.8 percent Y-o-Y and our non-mobile businesses continue to grow at a healthy clip and now contribute a sizable 24 percent of our total revenues.”

    In consonance with Vittal statement, Airtel’s Digital TV Services segment (DTH segment) reported 17.7 percent year-over-year (y-o-y) increase in operating revenues for the quarter ended 31 December 2016 (Q3-17, current quarter). Also, Operating Profit (Earnings Before interest and Tax – EBIT) of the DTH segment in the current quarter increased 27.1 percent year-over-year (y-o-y).

    Airtel DTH reported revenues of Rs 873.5 crore in Q3-17 and Rs 742.2 crore in Q3-16. EBIT for the corresponding periods was Rs 68.4 crore (7.8 percent margin of the segment’s operating revenue) and Rs 53.8 crore (7.2 percent margin of the segment’s operating revenue), respectively.

    EBIDTA in Q3-17 also increased y-o-y – by 22.3 percent to Rs 302.6 crore (34.6 percent margin of the segment’s operating revenue) in the current quarter from Rs 247.4 crore (33.3 percent margin of the segment’s operating revenue).

    Subscription numbers, ARPU

    Airtel’s DTH segment added 14.82 lakh subscribers between Q3-16 and Q3-17, or a 17.3 percent y-o-y increase. It had 125.88 lakh subscribers as on 31 December 2016. Q-o-q, the segment witnessed a 1.5 percent growth (1.83 lakh adds) in subscribers from 124.05 lakh in Q2-17.

    ARPU in Q3-17 increased to Rs 232 from Rs 229 in the corresponding year ago quarter, but remained flat q-o-q as compared to the immediate trailing quarter.

    Airtel numbers

    Bharti Airtel Limited saw a 3 percent decline in operating revenue to Rs 23335.7crore in Q3-17 as compared to Rs 24065.9 crore in Q3-16.. Profit after tax (PAT) in the current quarter declined to less than half (declined by 54.5 percent) y-o-y to Rs 504 crore (2.2 percent margin) from Rs 1,108 crore (4.6 percent margin). The company attributes decline in profits to net interest costs of Rs 1,810 crore that have risen from Rs 1,360 crore in the corresponding quarter last year largely due to increased spectrum related interest costs. Further, forex and derivative losses for the quarter came in at Rs 126 crore compared to Rs 57 crore in the corresponding quarter last year as well as exceptional items net losses of Rs 114 crore.

  • Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    BENGALURU: Indian telecom major Bharti Airtel Limited (Airtel) reported 3 percent decline in total revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter. The drop was partially affected by a drop in revenue due to divestments of its Africa operating units, tower assets sale and merger of Bangladesh operations. However, like in the previous quarter, Reliance Jio’s entry has resulted in a drop in the company’s India mobile revenues which contribute a lion’s share to overall revenue.

    Airtel MD and CEO of India and South Asia regions Gopal Vittal said, “The quarter has seen turbulence due to the continued predatory pricing by a new operator. The present termination costs at 14 paise which are well below cost has resulted in a tsunami of minutes terminating into our network. This has led to an unprecedented year on year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector. At the same time our commitment to provide a superior experience to our customers has led to revenue market share crossing a lifetime high of 33 percent. Airtel revenues grew by 1.8 percent Y-o-Y and our non-mobile businesses continue to grow at a healthy clip and now contribute a sizable 24 percent of our total revenues.”

    In consonance with Vittal statement, Airtel’s Digital TV Services segment (DTH segment) reported 17.7 percent year-over-year (y-o-y) increase in operating revenues for the quarter ended 31 December 2016 (Q3-17, current quarter). Also, Operating Profit (Earnings Before interest and Tax – EBIT) of the DTH segment in the current quarter increased 27.1 percent year-over-year (y-o-y).

    Airtel DTH reported revenues of Rs 873.5 crore in Q3-17 and Rs 742.2 crore in Q3-16. EBIT for the corresponding periods was Rs 68.4 crore (7.8 percent margin of the segment’s operating revenue) and Rs 53.8 crore (7.2 percent margin of the segment’s operating revenue), respectively.

    EBIDTA in Q3-17 also increased y-o-y – by 22.3 percent to Rs 302.6 crore (34.6 percent margin of the segment’s operating revenue) in the current quarter from Rs 247.4 crore (33.3 percent margin of the segment’s operating revenue).

    Subscription numbers, ARPU

    Airtel’s DTH segment added 14.82 lakh subscribers between Q3-16 and Q3-17, or a 17.3 percent y-o-y increase. It had 125.88 lakh subscribers as on 31 December 2016. Q-o-q, the segment witnessed a 1.5 percent growth (1.83 lakh adds) in subscribers from 124.05 lakh in Q2-17.

    ARPU in Q3-17 increased to Rs 232 from Rs 229 in the corresponding year ago quarter, but remained flat q-o-q as compared to the immediate trailing quarter.

    Airtel numbers

    Bharti Airtel Limited saw a 3 percent decline in operating revenue to Rs 23335.7crore in Q3-17 as compared to Rs 24065.9 crore in Q3-16.. Profit after tax (PAT) in the current quarter declined to less than half (declined by 54.5 percent) y-o-y to Rs 504 crore (2.2 percent margin) from Rs 1,108 crore (4.6 percent margin). The company attributes decline in profits to net interest costs of Rs 1,810 crore that have risen from Rs 1,360 crore in the corresponding quarter last year largely due to increased spectrum related interest costs. Further, forex and derivative losses for the quarter came in at Rs 126 crore compared to Rs 57 crore in the corresponding quarter last year as well as exceptional items net losses of Rs 114 crore.

  • Fazed by expensive 4G spectrum, BSNL gifting Kerala 1k hotspots

    Fazed by expensive 4G spectrum, BSNL gifting Kerala 1k hotspots

    NEW DELHI: Public sector telco BSNL will launch 1,000 high-speed Wi-Fi hotspots across the state of Kerala to address the challenges posed by its absence in the 4G data services, a top BSNL official has said.

    BSNL’s Kerala circle CGM R Mani told reporters that the proposed hotspots would provide 4.5G speed and would be commissioned within a months’ time. Huge cost to buy the 4G spectrum was the hindrance for the state-run service provider to plunge into 4G services, but it is expected to happen by this March, Mani was quoted by a PTI report, carried by Firstpost, as saying, who added that wherever BSNL’s 3G tower experienced a lot of traffic, Wi-Fi hotspots are being put up.

    With the commissioning of the hotspots, when a customer is using his mobile phone, his network service would be directly taken over to the Wi-Fi hotspot. “Then, he will not be on 3G… but will be on 4.5G,” the BSNL official is reported to have said. The project is being implemented in collaboration with equipment from Larsen & Toubro.

    The official explained that the high cost of 4G spectrum was an impediment for the State-run telco, though the initiative was “under evaluation” at the headquarters in Delhi.

    The rollout of 1,000 Wi-Fi hotspots in Kerala is part of an effort to provide Wi-Fi hotspots all across the country. In 2015, it was announced that BSNL would be investing Rs. 7, 0000 million to set up Wi-Fi hotspots across the country over the course of two to three years. BSNL has partnered with QuadGen Wireless to set up Wi-Fi hotspots in south and west zones, under a revenue sharing model.

    According to the report, BSNL plans to set up 40,000 Wi-Fi hotspots across the country by 2018 and the company already offers Wi-Fi services in tourist destinations such as the Taj Mahal, Khajuraho and Varanasi. The first 30 minutes of Wi-Fi connectivity is free, after which users will have to pay between Rs 20 to Rs 70 for access between 30 minutes to 24 hours. The free access is provided three times a month per user.

    Facebook has sponsored 100 hotspots across the country in partnership with BSNL and the social media company (hauled up by the government last year for offering, what the telecom regulator said, services that breached principles of Net Neutrality via Internet.org) is paying BSNL Rs 500,000 per hotspot annually. There is no revenue sharing agreement with Facebook.