DoCoMo + Aircel + MTS determined to cut into market – Freebies + Incentives to Flow
I must first step back a bit from my stand that new operators had a weak business case [cash flow wise, it appears so, who cares]. However, looking at the recent developments, they are going to disrupt the business case [at least in short to medium term] of even the big fat guys like Airtel and Vodafone 
New entrants – MTS [Shyam Sistema], Tata DoCoMo, Aircel, Etisalat DB, Telnor, S Tel Batelco, Datacom are entering the Indian market through strategic stakes in the new licensees and have committed investments of ~$4bn so far. They are at a structural disadvantage as their spectrum is less efficient but Shared infrastructure model will lower their capex. Etisalat, S Tel, Datacom and Telnor’s launch is at least 3 quarters away while MTS, DoCoMo, and Reliance GSM have started cutting into the market place.
Tata DoCoMo’s per second billing has gained traction and is very likely that other new operators will launch similar offers or disrupt the market place further with more sweetened offer. In short term, a revenue loss of 10-15% is inevitable for incumbents.
With gradually expanding network coverage, their strategy is to focus on urban markets, leveraging their empty network and innovative schemes as a customer acquisition tool. Here is a quick look at current business strategies of new entrants. Read more
MTS – Shyam Tele Creates History in Indian Telecom – Offers Free Calls in Rajasthan for 999 Days
If you have been thinking of Airtel Special 5 as cool product, its a Gimmick to survive the competition from new operators. I have already received tip-off from leading Telecom Analysts on Dalal Street about new operators readying to cut throats of incumbents [Yes I mean it, i'll post it in a while or early morning tomorrow]
MTS India – [Shyam Sistema] CDMA Wireless service provider in a release just minutes ago has created history in India offering FREE calls to all MTS subscribers within Rajasthan for a whopping 999 days. Offer valid for new as well as existing customers on recharging for Rs 999 where in you will get talk time worth Rs 500 and Lifetime Read more
Wireless / Mobile Broadband – EVDO-HSPA-3G Vs WiMax – Will the War Intensify with Spectrum Auction ?
With increasing pressure in Wireless Voice segment, Telcos are now shifting their attention to data services starting with Broadband where ARPU / Month is ~4 times than Voice. I would like to do a status check on the available Wireless / Mobile broadband technologies in India and their adoption by Telcos and the results they’ve tasted in the market place.
Reliance Communications started the broadband over WiMax revolution in India 2 years ago followed by Tata Communications / Indicom and both seem to have had tough time. Both of these roll outs have happened on 802.16d while the current WiMax spectrum auction is for 802.16e. Tata Communications has mere 50,000 subscribers on its 1,000 base station WiMax network spread across India. RCom declines to give exact subscribe numbers citing competition as the reason but I am inclined to assume Read more
Latest Customers + Revenue Market Share of Top 5 Telecom Cos in India
Now that we have results of all the Telecom Companies for the quarter ending June-2009, i was curious to see the latest Customer market share Vs Revenue Market share. Bharti Airtel managed to grab the sweet spot. One good strategy about Airtel is Grow consolidate and then back to the Growth cycle and the spiral continues.
- Bharti Airtel has 24.3% customer market share and 33.8% revenue market share.
- Vodafone India has 18.8% customer market share and 20.7% revenue market share.
- Idea Cellular has 11.2% subscribers market share and 12.1% revenue market share
Tata DOCOMO adds 1.8m GSM subscribers in July – 50% of Net Adds market
According to NTT DoCoMo’s investor presentation, Tata DoCoMo GSM Wireless services which went live in South India on June 24th has managed to add a whopping 1.8mn subscribers. This represents approximately 50% market share of net-adds, based on Jun-09 figures, in the five Southern circles where TTSL launch GSM in end-June.
Tata DoCoMo USP is “per second” billing (i.e. 1p/sec for local calls); Analysts estimate implied ARPM to be at a 25% discount to industry. Tata DoCoMo expects to launch GSM in Mumbai in August, and complete its pan-India roll out in FY10.
Qualcomm bows down to CDMA Operators Demand with Open Market Handsets
In order to give a big push to the Indian Wireless industry, then IT & Communications minister, Dayanidhi Maran had tried hard to negotiate between CDMA operators [Reliance and Tata Indicom] and the technology provider – Qualcomm in July-2006. Exactly 3 years later, as Indian operators and customers began to increasingly embrace GSM technology, Qualcomm has bowed down to the dynamics of Indian market and has announced Open Market Handset
What is Open market Handset – OMH ?
With Open Market Handset, user can decide to choose the CDMA operator and switch to any of them without any hassle. You can use the same Mobile handset across Read more
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