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Tag: Mobile services

  • Airtel Q3 FY22: 5.4% revenue growth QoQ led by ARPU increase

    Airtel Q3 FY22: 5.4% revenue growth QoQ led by ARPU increase

    Mumbai: Telecom major Bharti Airtel on Wednesday announced its third quarter FY 2022 results. The company has posted quarterly revenues of Rs 29,867 crore, up 18.3 per cent year-on-year backed by strong and consistent performance delivery across the portfolio. It reported net income (after exceptional items) of Rs 830 crore.

    The telecom company’s India business saw quarterly revenues of Rs 20,913 crore which was up by 17.9 per cent YoY. Its India customer base stands at ~356 million.

    Its mobile services revenues were up by 19.1 per cent YoY led by an increase in average revenue per user (ARPU). Its mobile ARPUs increased to Rs 163 during the quarter versus Rs 146 in the same quarter previous year. Mobile data consumption increased by 33.8 per cent YoY at a rate of 18.3 Gb per month.

    Additionally, Airtel’s 4G customers increased by three million on a quarter-on-quarter basis to reach 195.5 million and account for 61 per cent of its total base.

    The company’s home business saw 40.4 per cent YoY growth led by strong customer additions. Home business witnessed 341,000 customer net additions in the quarter to reach a total base of 4.16 million. Its Digital TV customer base stood at 18.1 million during the same period. “Digital TV continues to improve its market position with steady revenue and customer base,” said the statement.

    Airtel Business revenues were up by 13.4 per cent YoY backed by strong demand for data portfolio and emerging businesses.

    During the quarter, Google announced that it would invest $1 billion in Airtel as part of its Google for India Digitization Fund. Airtel also announced a joint venture with Hughes Communications to become the largest satellite service operator in India.  

    “We have delivered another quarter of sustained performance across all our business segments,” said Bharti Airtel India and South Asia MD and CEO Gopal Vittal. “Overall sequential revenue growth was at 5.4 per cent and EBITDA margins came in at 49.9 per cent. The recent tariff revision for mobile services has gone down well and we are exiting the quarter with an industry leading ARPU of Rs 163. The full impact of the revised mobile tariffs, however, will be visible in the fourth quarter. Our Enterprise, Homes and Africa business continue to deliver strongly, with steady increase in contribution to the overall mix of the portfolio. Our balance sheet is robust and we are now generating healthy free cash flows. This has enabled us to recently prepay some of our spectrum liabilities to the Government thereby reducing the interest burden.”

    He further stated, “Google’s recent investment is a strong validation of Airtel’s role in being a leading pioneer of India’s digital revolution. Our emerging digital services portfolio across Airtel IQ, AdTech, digital marketplace, Nxtra and digital banking positions us well to build an Airtel of the future.”

  • Tele data & VoIP service rev may expand at 3% CAGR by ’21

    MUMBAI: “India: Intense Competition in Mobile Services Segment to Result in Market Consolidation”, a new Country Intelligence Report by GlobalData, is providing an executive-level overview of the telecommunications market in India today, with detailed forecasts of key indicators up to 2021.

    Published annually, the report provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband, and mobile, as well as a review of key regulatory trends.

    The telecom service revenue in India is estimated to grow at a CAGR of 3.0% during 2016-2021, due to growth in mobile data and fixed VoIP. Robust growth in adoption of 4G services, fixed operator efforts to provide 1Gbps FTTH services, and government efforts to expand fiber-optic networks under the BharatNet Project are key drivers for telecom growth in the market. The pay-TV market going forward will be led by robust growth in DTH and IPTV services. IPTV will witness the fastest growth in the pay-TV market in India. Competition in the mobile market intensified with the entry of Reliance Jio.

    The overall telecom service revenue in India will grow at a CAGR of 3.0 per cent during 2016-2021, mainly driven by growth in mobile data, fixed broadband and fixed VoIP segments.

    Mobile revenue will account for 82.4% of the total telecom revenue in 2021; mobile data will witness a CAGR of 16.5 per cent during 2016-2021.

    The top two operators, Airtel and Vodafone, accounted for 37.3 per cent  share of overall service revenue in 2016. We expect competition to intensify with the entry of Reliance Jio in early 2017.

    National Telecom policy – 2012 aims to boost broadband subscriptions to 175m by 2017 and to 600m by 2020 and increase rural teledensity to 100 per cent by then.

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  • Mobile services market revenue in India to reach $37 billion by 2017

    Mobile services market revenue in India to reach $37 billion by 2017

    NEW DELHI: Even as the Telecom Regulatory Authority of India (TRAI) says India has nearly 850 million mobile subscribers, the total mobile services market revenue in India is $29.8 billion and will reach $37 billion by 2017.

     

    According to International Data Corporation (IDC), this will mean a compounded annual growth rate of 5.2 per cent.

     

    Mobile broadband market in 2014 will continue to have strong growth in India as compared to other mobile services market.

     

    According to a report on the IDC website, “Mobile services market in Asia/Pacific excluding Japan (APeJ) region is considered as a very dynamic market compared to other emerging and mature markets. Many mobile operators have been struggling for quite some time to maintain growth in revenue, especially on voice services.”

     

    From 2012 to 2017, IDC projects that the growth rate for voice services revenue in APeJ will slow down and achieve a compound annual growth rate (CAGR) of 2.5 per cent. However, data connectivity or mobile broadband revenue will grow at a CAGR of 19.3 per cent from 2012 to 2017.

     

    IDC said mobile broadband market size will be $7 billion by 2017 with a CAGR of 32 per cent. The 3G subscribers will hold the highest five-year CAGR of 68 per cent compared to other mobile technology. This is mainly due to more 3G services coverage across the country, especially in the big cities.

     

    Among mobile services, only mobile broadband services show strong growth, meanwhile SMS and MMS are on a decline trend. Voice services tend to have a flat growth rate.

     

    IDC attributes the growth of data revenue in APeJ to three key areas: Smartphones penetration with affordable prices; Rollout of 3G and LTE licenses and mobile user behavior towards ‘Over-The-Top-Players’ (OTTP) services.

     

    “For India, mobile broadband market in 2014 will continue to have strong growth compared to other mobile services market. This service is expected to reach US$7 billion by 2017 with a CAGR of 32 per cent. 3G subs will hold the highest five-year CAGR of 68 per cent compared to other mobile technology. This is mainly due to more 3G services coverage across the country, especially in the big cities. With this trend, operators should focus more on their mobile broadband strategy,” says IDC Asia/Pacific Telecommunication Group senior research manager Ashadi Cahyadi.

     

    According to IDC’s Asia/Pacific Semiannual Telecom Services Tracker 1H2013, the total mobile services market revenue in India will reach US$29.8 billion by 2014 and is expected to reach US$37 billion in 2017 with a CAGR of 5.2 per cent.

  • Mobile services better, Airtel continues to lead: TNS Celltrack report

    Mobile services better, Airtel continues to lead: TNS Celltrack report

    MUMBAI: The mobile telephony sector in India is not just growing but service providers seem to be getting better at meeting customer expectations.

    According to the latest annual TNS CellTrack 2006 study, the already high TRI*M index for the industry – the metric that measures the strength of the ‘subscriber-service provider relationship’ – got even better, and is today at 82, up from 79 in 2005.

    The performance of the Indian mobile industry measured by their ability to anticipate and meet customer expectations has been increasing consistently over time. From an industry average TRI*M Index of 55 in 2000, the Indian mobile industry has surely come a long way.

    Airtel not only retained its number one position among the national players (see Figure 2), but also scored better, with the TRI*M Index up from 82 in 2005 to 90 this year. Hutch has also managed to improve their performance significantly and stays at second place, while Reliance with a TRI*M Index of 83 (80 in 2005) is third. Idea, BSNL and Tata Teleservices, have maintained performance but are significantly below the industry average of 82.

    Among the regional players, the big surprise is MTNL – dislodging Spice to become the best regional player with a TRI*M Index of 100.

    TNS India head of telecom practice Abraham Karimpanal says, “While it could be argued, and rightly so that MTNL is attracting a different profile of subscribers with different set of expectations, this war is all about each operator understanding and /or crafting, and then managing their subscribers’ expectations. Whether by design or otherwise, MNTL has surpassed all others at it.”

    TNS CellTrack 2006 also tracks the evolving brand choice and purchase behaviour for handsets among the Indian mobile users.

    Nokia continues to dominate the GSM market, with a 79 per cent market share. Motorola is the brand that has been able to significantly improve its share by almost doubling from three per cent in 2005 to seven per cent in 2006. Motorola’s gain is possibly Samsung’s loss as their market share has dropped from six per cent in 2005 to four per cent in 2006.

    LG has consolidated its position as the market leader in the CDMA handset market. The current 49 per cent market share is an improvement of over 43 per cent market share LG had in 2005. While Nokia managed to retain its share of the CDMA handsets, Samsung and Motorola have lost market share from 17 per cent to eight per cent and 12 per cent to four per cent respectively.

  • Bharti Airtel initiates management restructuring

    Bharti Airtel initiates management restructuring

    MUMBAI: Bharti Airtel, mobile services provider has announced the appointment of Atul Bindal as joint president – Airtel Broadband and Telephone Services and has appointed Deepak Srivastava as chief operating officer, Airtel Broadband and Telephone Services, North region.

    Bindal will report to Bharti Airtel president Manoj Kohli and will be a member on the Airtel Management Board (AMB), and chair the Broadband and Telephone Services Management Board (BTMB). Srivastava will in turn report to Bindal.

    Bindal, in his new role will focus on taking Bharti Airtel’s Broadband and Telephone services division to new heights with increased town rollouts and introduction of new technologies. He will be supported by Rajiv Sharma (CEO-NCR), Deepak Srivastava (COO-North), Prem Pradeep (CEO-South Central), Deepak Khanna (CEO-West and MPCG), Randeep Narang (COO-MPCG), informs an official release.

    Prior to this, Bindal was the executive director – South for Mobile Services at Bharti Airtel. He has also had a stint as the Group chief marketing officer and director – Mobile Services at Bharti Airtel for over one and half years.

    Bharti Airtel president Manoj Kohli said, “I am delighted to
    announce the appointment of Atul as the Joint President of our Broadband and Telephone services. Atul, with his strategic business sense and people management skills will lead a set of highly talented and competent leaders to take Bharti Airtel’s Broadband and Telephone Services division to the next level of excellence in Broadband services in 92 towns.”
    Deepak Srivastava on the other hand, was the chief operating officer, Mobile Services, Bihar and Jharkhand. He joined Bharti Airtel in 2004.

    “Deepak Srivastava has successfully led the Bihar and Jharkhand market to leadership and I am confident that in his new assignment, he will continue to set new standards and scale new heights in North Airtel Broadband and Telephone Services,” added Kohli.