Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Market Whispers
Tax Planning
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund

| More

Telecom: LTE - 40% of data users, 80%+ of usage - Kotak

Posted On: 2017-10-05 20:23:41

LTE - 40% of data users, 80%+ of usage. Thanks to R-Jio's aggressive push in the past one year, LTE accounted for nearly 40% of the data subscriber base and 80%+ of data usage in India in the June 2017 quarter. Among other takeaways from TRAI's June 2017 performance indicator report (PIR) - (1) consumer-level spends (including service tax) declined again qoq and stood at a measly 0.84% of GDP, (2) net-of-taxes average prepaid spend was a lowly Rs65/subscriber, and (3) voice volumes grew 31% yoy.

June 2017 PIR - another quarter of sharp surge in volumes, both data and voice

Increased adoption of eat-all-you-can (with generous fair usage limits) bundle plans continues to drive a sharp surge in industry-level data and voice volumes. In the June 2017 quarter, industry-level voice volumes rose 31% yoy to 1.51 tn, according to PIR data by TRAI. In absolute terms, wireless subscribers consumed an incremental 118 bn minutes qoq and 357 bn minutes yoy. The incumbents (Bharti, Vodafone and Idea), as a composite, saw their voice volumes grow 92 bn minutes qoq (78% incremental share) and 220 bn yoy (62% incremental share). The increase in incremental share (higher qoq versus yoy) for the incumbents reflects - (1) increased adoption of bundled plans within their subscriber base and also (2) continued loss of volume share for the challenger pack.

Data volumes grew 21.5% qoq and nearly 9X yoy to 4.3 bn GB on the back of a 15.4% qoq and 7X yoy jump in data usage per subscriber to 3.6 GB/month in the June 2017 quarter. On the data front again, the reported data volume of incumbents suggests that their share of incremental qoq data volumes was a healthy 62%. With Jio likely to have accounted for a bulk of the remaining 38%, it is very likely that the challenger pack saw extremely muted growth or even a decline in composite data volumes.

Data KPIs - LTE's dominance rising on expected lines

Of the 410 mn wireless internet users in the country at end-June 2017 (+9.4 mn qoq, +80 mn yoy) - (1) 160 mn were LTE subscribers (+30 mn qoq), (2) 121 mn were 3G subscribers (down 5 mn qoq), (3) 127 mn were 2G (GSM) subscribers (down 15 mn qoq), and (4) 2 mn were on various CDMA platforms (a dying ecosystem).

From a data volume standpoint, LTE accounted for nearly 81% of the total wireless data consumption of 4.3 bn GB during the quarter. Interestingly, this marked a decline from the 85-86% levels seen in the past two quarters. 3G gained share (16.4% share for the quarter versus around 11% in the past two quarters) with 3G data volumes growing nearly 80% qoq. 3G's share gain is misleading, however. The sharp surge in 3G data volumes is essentially on account of the incumbents' LTE subscribers being pushed down to their 3G networks in areas where they have not rolled out LTE yet. To that extent, this sharp surge in 3G data volumes, if anything, reflects poorly on the relative state of LTE networks of the incumbents. We do note that BSNL's aggression could also be a factor here.

Consumer level spends decline further

Net consumer level spends, including service tax, stood at Rs325 bn for the June 2017 quarter, down 1.4% qoq and 27% yoy. At 0.84% consumer spend to nominal GDP ratio for the quarter (and 1% TTM), India remains an outlier. Average prepaid consumer-level spend stood at just Rs65/month for the quarter, down nearly 39% yoy. Postpaid net ARPU fell below the Rs400/month mark for the first time ever and stood at Rs393 for the quarter. Postpaid segment accounted for around 23% of total industry-level consumer spends.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Minda Industries (MNDA.IN) - Robust performance - CSEC Research
Karur Vysya bank (KVB IN) - Moderate loan growth, coupled with deteriorating asset quality - CSEC Research
Aksharchem India Ltd - REDUCE - TP Rs.680 - Result Update - Kotak
Voltamp Ltd - BUY - TP Rs.1248 - Result Update - Kotak
Shankara Building Products Ltd - BUY - TP Rs.1654 - Result Update - Kotak
Simplex Infrastructure Ltd - BUY - TP Rs.590 - Result Update - Kotak
MOIL Ltd - ACCUMULATE - TP Rs.265 - Result Update - Kotak
CHHOTA (to) MOTA ideas: Eveready Industries Ltd - BUY - TP Rs.522 - Kotak
Castrol India Ltd - Q2FY18 Result Update - Religare
Minda Corporation - Q2FY18 Result Update - Religare
Mold-Tek Packaging - Q2FY18 Result Update - Religare
The India Cements Ltd - BUY - TP Rs.223 - Result Update - Kotak
Tata Motors - BUY - TP Rs.514 - Result Update - Kotak
Ashok Leyland - ACCUMULATE - TP Rs.126 - Result Update - Kotak
Oil India Ltd - ACCUMULATE - TP Rs.381 - Result Update - Kotak
Sun TV Network - REDUCE - TP Rs.878 - Result Update - Kotak
Larsen & Toubro - ACCUMULATE - TP Rs.1337 - Result Update - Kotak
Voltas - ACCUMULATE - TP Rs.610 - Result Update - Kotak
Allcargo Logistics - BUY - TP Rs.205 - Result Update - Kotak
Mahindra & Mahindra - BUY - TP Rs.1604 - Result Update - Kotak
Motherson Sumi Systems Ltd - SELL - TP Rs.342 - Result Update - Kotak
MRPL - ACCUMULATE - TP Rs.138 - Result Update - Kotak
Mold-Tek Packaging - ACCUMULATE - TP Rs.337 - Result Update - Kotak
NMDC Ltd - REDUCE - TP Rs.130 - Result Update - Kotak
Time Technoplast Ltd - BUY - TP Rs.214 - Result Update - Kotak
Nagarjuna Construction - BUY - TP Rs.107 - Result Update - Kotak
The Phoenix Mills Ltd - BUY - TP Rs.594 - Result Update - Kotak
Sterling Tools Ltd - BUY - TP Rs.350 - Result Update - Kotak
Delhi takes a giant stride towards curbing vehicular pollution: Angel Broking
Mirza International - REDUCE - TP Rs.173 - Result Update - Kotak
Indraprastha Gas - SELL - TP Rs.291 - Result Update - Kotak
Mahanagar Gas Ltd - SELL - TP Rs.1033 - Result Update - Kotak
Petronet LNG - ACCUMULATE - TP Rs.285 - Result Update - Kotak
Bajaj Electricals - SELL - TP Rs.335 - Result Update - Kotak
Chhota (to) Mota Ideas - Venky's India Ltd - BUY - TP Rs.3000 - Result Update - Kotak
Va Tech Wabag - BUY - TP Rs.711 - Result Update - Kotak
Chennai Petroleum Corporation Ltd - ACCUMULATE - TP Rs.485 - Result Update - Kotak
Castrol India Ltd - ACCUMULATE - TP Rs.437 - Result Update - Kotak
Shree Cements Ltd - BUY - TP Rs.21913 - Result Update - Kotak
Greenply Industries Ltd - ACCUMULATE - TP Rs.322 - Result Update - Kotak
IRB Infrastructure Developers Ltd - BUY - TP Rs.271 - Result Update - Kotak
Maharashtra Seamless Ltd - BUY - TP Rs.560 - Result Update - Kotak
VIP Industries - ACCUMULATE - TP Rs.325 - Result Update - Kotak
Greaves Cotton Ltd - ACCUMULATE - TP Rs.136 - Result Update - Kotak
Shipping Corporation of India Ltd - ACCUMULATE - TP Rs.110 - Result Update - Kotak
Berger Paints Ltd - REDUCE - TP Rs.265 - Result Update - Kotak
Apollo Tyres Ltd - BUY - TP Rs.278 - Result Update - Kotak
Zensar Technologies Ltd - REDUCE - TP Rs.855 - Result Update - Kotak
VRL Logistics - BUY - TP Rs.450 - Result Update - Kotak
Carborundum Universal Ltd (CUMI) - SELL - TP Rs.318 - Result Update - Kotak

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2017