Seg­ment High­lights

Voice&Data - - OVERVIEW -

Voice

Voice ser­vices con­tinue to be the main rev­enue con­trib­u­tor in Tele­com Ser­vices. In FY 2014-15, it reg­is­tered a growth of 5.8% com­pared to the pre­vi­ous year.

There were 996 mil­lion to­tal sub­scribers at the end of March 2014.

In FY 2014-15, it con­trib­uted 64.6% to the over­all tele­com ser­vices rev­enues as com­pared to 65.8% in the pre­vi­ous fi­nan­cial year, im­ply­ing a clear shift in terms of rev­enue to­wards data ser­vices.

Fixed voice seg­ment con­tin­ues to register a neg­a­tive growth and this year it was -8%. How­ever, in the mo­bile voice seg­ment the growth was 8.9%.

The smaller play­ers are fo­cused on the de­fined pock­ets of the mar­ket and are adding sub­scribers in ru­ral and semi-ur­ban geogra­phies which are mainly voice sub­scribers.

Call drop has been a ma­jor is­sue, ev­ery op­er­a­tor is strug­gling to min­i­mize the call drop ra­tio which is due to lack of tow­ers, and even if op­er­a­tor in­stalls more tow­ers they can’t back­haul the traf­fic be­cause fi­bre con­nec­tiv­ity is yet to match up. For cus­tomer ben­e­fit, Uni­nor has started adding 1 minute for ev­ery call drop to the con­sumers ac­count.

The op­er­a­tors, es­sen­tially the large op­er­a­tors need to fo­cus more on new sub­scriber ac­qui­si­tions rather than ‘play­ing’ with the ex­ist­ing base.

DATA

The mo­bile data is con­tin­u­ously grow­ing at 30% due to in­crease in data sub­scribers. High growth was seen in 3G data sub­scribers in FY 2014-15.

Data ser­vices con­trib­uted 26.6% of the to­tal rev­enues for the op­er­a­tors in FY 2014-15 as com­pared to 24.8% in FY 2013-14.

While fixed as well as wire­less data ser­vices reg­is­tered growth in rev­enues, it was 29.9% in case of wire­less ser­vices while in fixed it was 2.5%. Over­all, data ser­vices grew at 18.3% YoY.

Large play­ers fo­cused more on upgra­da­tion and mi­gra­tion of ex­ist­ing sub­scriber base from Non Data and 2G users to 3G, LTE. This re­sulted in in­cre­men­tal data con­sump­tion along with new sub­scriber ad­di­tion.

Another rea­son for the data growth of this or­der has been re­duc­ing prices in FY 2014-15.

Fixed data rev­enue in­creased by 2.5% this year. The main rea­son for growth of fixed data is in­creased fixed broad­band users and in­crease in av­er­age con­sump­tion of fixed broad­band data while prices have re­mained con­stant.

Avail­abil­ity of af­ford­able smart­phones has pushed the mar­ket to drive the data growth.

VSAT

The VSAT seg­ment grew by 10% in FY 2014-15 over pre­vi­ous fi­nan­cial year.

BFSI is the main seg­ment which is con­tribut­ing around 60% of the rev­enue for this seg­ment. Or­ders from RBI for the in­stal­la­tion of new ATM with au­di­ble in­struc­tions with the ex­pan­sion in ru­ral ar­eas have been the ma­jor driv­ing fac­tor for the in­dus­try.

E-learn­ing and gov­ern­ment cam­paigns like “Dig­i­tal In­dia” have cre­ated the op­por­tu­ni­ties for VSAT play­ers.

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