TRAI Defends Spectrum Auction Price Recommendation + Fires Interconnect Tariff Missile = Loss for Incumbents
In response to Spectrum Auction questions raised by the DoT, TRAI defends its position of High Reserve Price for Telecom Spectrum as well as its recommendations on re-farming etc. Analysts had expected TRAI to soften its stand a bit, but the regulator put its foot forward and had defended the same. Having tracked the Indian Telecom sector for over a decade, I am of the opinion that the reserve price is too high – 8x higher for 1,800 MHz than the global average spectrum auction pricing of US$79mn.
After all the Auction of Spectrum Read more
Uninor to Bid Selectively in 2G Spectrum Auction – Disappointing Results
Telenor has written down the remaining Book Value of its Indian operations. Post the write-down, the company has no further accounting exposure related to India. It is reliably learnt that Uninor may bid selectively to counter the high reserve price for 2G spectrum in the upcoming auction.
Why just 6 Circles ? Uninor’s top six circles account for ~70% of revenues. Based on acquiring 5Mhz in each of these circles (at reserve price) Telenor Read more
How Much Mobile Tariff Hike Can Offset TRAI Recommended Spectrum Charges ?
Last month TRAI recommended astounding Reserve Price for Telecom Spectrum Auction. DoT has sought clarification on the same before coming with the final proposal. Meanwhile, Telecom Operators are sparing no efforts to bring down the Reserve Price of Spectrum and threatening that a call tariff hike upto 100% maybe required to fund the spectrum fees burden. Telecs sure are blowing it out of proportion, but lowering the Reserve Price will be a Prudent step for progressive auction, in my view.
Well, TRAI wants to Maximize Revenue for the State while Telecom Read more
Airtel Surprises with Minutes Growth + DSL Broadband Subscribers 1.4 Mn + $2Bn Spend on Wireless Data Expansion
Airtel Mobile Operations in India positively surprised with Minutes of Usage growth of 5.1% qoq, though was partially offset by qoq RPM decline of 1.6%. This Growth in Wireless MoU of Indian business suggests that Bharti’s strategy of realigning tariffs is yielding positive elasticity.
Mobile ARPU was Rs 189 per month as compared to Rs 187 in the previous quarter. Airtel India Mobile Subscriber base has reached 181.27 Mn at the end of March-2012. Overall customer base across 20 countries and across bouquet of Telecommunications services now stands at 251.6 million Read more
Impact of TRAI Recommendations on Incumbents Vs New Operators – 2
Here is the take on remaining parts of the Recommendations of TRAI [Read Part 1 here] and its impact on Incumbent and New Telecom Operators in India.
For supra-1 GHz band: 33% of the bid amount to be paid initially then a moratorium of two years will be allowed and the balance payment to be made in 10 years (in equal installments). For sub-1 GHz band: 25% of the bid amount to be paid initially then a moratorium of two years will be allowed and the balance payment to be made in 10 years (in equal installments).
Positive for all stake holders including Government since it will have regular stream of income from leasing Spectrum. Read more
Idea has 2.6 Mn 3G Subscribers + Non Voice Revenue Jumps to 14.3%
Idea Cellular, PAN India GSM Mobile Service Provider has 2.6 Mn Active 3G Customers including those with Roaming Arrangements. Idea now has 12,825 towers serving 3G out of the total 83,190 it uses for serving Wireless customers i.e about 15% of 3G roll-out completed in a year.
Idea’s share of Non-Voice Revenue now stands at 14.3% [2G & 3G Data, SMS, Sale of Android Handsets and Value Added Services] Read more
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