Bharti Air­tel, Idea in­crease rev­enue mar­ket share; oth­ers slack

The Pak Banker - - COMPANIES/BOSS -

NEW DELHI: Bharti Air­tel Ltd and Idea Cel­lu­lar Ltd, In­dia's largest and third-largest tele­com ser­vice providers, re­spec­tively, are the only ones that have suc­cess­fully in­creased rev­enue mar­ket share (RMS) over the last one year, data from the Tele­com Reg­u­la­tory Au­thor­ity of In­dia (Trai) re­viewed by Mint showed. The re­main­ing tel­cos have ei­ther lost rev­enue mar­ket share (RMS) or just about main­tained it in the 12-month pe­riod end­ing De­cem­ber 2015.

The growth seems to be largely driven by the push in data ser­vices that many of the coun­try's tel­cos have un­der­taken over the last few quar­ters, an­a­lysts said. Voda­fone In­dia Ltd, In­dia's se­cond largest telco, ended the 12-month pe­riod with a flat RMS of around 23%, gain­ing in 10 cir­cles, los­ing in seven and con­sol­i­dat­ing its lead­er­ship po­si­tion in Mum­bai and Kolkata. Bharti's RMS gained 70 ba­sis points over the same pe­riod last year to 31.6%, driven by a sharp in­crease in five mar­kets (the big­gest be­ing in Andhra Pradesh, Kar­nataka and Mum­bai) in the last quar­ter. Idea's RMS gained 40 ba­sis points in the De­cem­ber quar­ter to 18.9%, gain­ing in 19 cir­cles (the big­gest in Pun­jab, Maharashtra and Andhra Pradesh).

In­ter­est­ingly, the top three tel­cos ac­counted for 73.6% of RMS, or al­most three quar­ters of the sec­tor rev­enues.

"Com­bined RMS of the top three tel­cos in­creased by 80 ba­sis points this quar­ter to 73.6% and was up 180 ba­sis points (year-on-year), high­light­ing that quasi sec­tor con­sol­i­da­tion con­tin­ues and im­ply­ing in­cum­bent tel­cos have a higher share in data rev­enues," Ra­jiv Sharma, tele­com an­a­lyst with HSBC Se­cu­ri­ties and Cap­i­tal Mar­kets (In­dia) Pvt. Ltd, wrote in a re­port re­leased on Fri­day.

An­a­lysts at­trib­uted the growth to the in­creased fo­cus on de­ploy­ing data ser­vices across the coun­try, thereby in­creas­ing the rev­enues from data, at a time when the tel­cos are fac­ing a lot of pres­sure on both voice and data tar­iffs. Bharti has ex­panded its 4G ser­vices in 15 cir­cles across the coun­try, while Idea is in the process of ex­pand­ing to 10 from eight cir­cles rolled out so far. Voda­fone has com­pleted its first phase with roll-outs across five cir­cles of Delhi, Mum­bai, Kolkata, Kar­nataka and Ker­ala.

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