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Reliance to Offer Videos with Ads

Reliance Communications (RCom), one of India’s leading telecom operators, has formed a partnership with UK-based 3rd Space Services to offer video content having embedded advertisements on its mobile platform. As per the agreement, 3rd Space Services will offer mobile video content to RCom. Along with world’s leading sporting content. It…

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Higher MAT will Impact Cash Flow

The Finance Minister, as part of the Union budget 2009-10, announced an increase in MAT to ~16.8% (incl. surcharge/cess) from 11.2% though extending time line for using MAT credit to 10 years (7 years). This will Result in higher cash outflow, it will be EPS neutral given: both Idea and…

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Tariff War Not Yet Intense – 3G be big Dent

Following GSM (global system for mobile) launches by Aircel, Vodafone, RCOM and Idea in the first quarter of calendar 2009, net adds have stabilized at 11.5-12mn in the last two months, down from 15-16mn in the previous quarter. Initial launches, especially by RCOM, offered ARPM as low as Rs0.1/min for…

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Mobile numbers with "8" as first digit

The Department of Telecommunications (DoT) is expected to permit mobile telecom operators to roll out new mobile numbers with ‘8’ as the first digit. The move has been necessitated following a huge spurt in the mobile subscriber base and having used up all mobile numbers beginning with ‘9’. India’s cellular…

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Revenue + ARPU + Penetration of Wireless Companies

We did an analysis on how Telcos will expand and serve in the near future. Out study suggests that South India has relatively low penetration and above average ARPUs, and represents the best opportunity for near-term growth for telcos in the near term. This helps explain why several new entrants…

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DoT contemplates separating license + spectrum

The Department of telecommunications (DoT) is contemplating to separate the issue of spectrum from license, a move that can help develop a suitable long term policy for the 2G spectrum allocation. DoT came under heavy criticism last year after it issued 2G licenses to a number of new entrants at…

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DoT postpones 2G spectrum allocation till 3G policy is finalised

In a development that is likely to hit telecommunications companies, the Department of Telecommunications (DoT) is understood to have decided to postpone any decision on grant of second generation (2G) spectrum or radio frequency till a final decision on the 3G spectrum allocation is arrived at. A meeting between the…

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GSM Subscriber Net Adds Decline in May

GSM operators reported 8.7m (est.) net-adds in May vs. 9.4m in April; our May estimate assumes RCOM added 0.4m subs (same as in April) in its existing GSM (RTL) circles. Decline in overall net-adds was driven by BSNL (net-adds down by 0.6m; 56% mom) and Vodafone (0.2m; 35%). Idea’s net-adds…

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