Our telecom operator earnings coverage is brought to you by OnMobile Global, India’s leading Mobile Value Added Services [VAS] company Bharti Airtel had reported consolidated revenues of Rs 21,939 crore and a net profit of Rs 610 crore for the quarter ended December 31, 2013 (Q3-FY14). The mobile Internet revenues was at Rs 1,736 crore for the quarter, up 105% year-on-year. Here are some notes from Airtel’s earnings conference call: (Also read: Airtel Looking To Shift To Content-Based Data Plans) - On discounted minutes: The difference between headline tariffs and realized tariffs is almost 30%-40%, so there is still a substantial headroom to cut back on discounted minutes. The challenge however is to optimize the tradeoff between volume and rate to drive revenue and improve its voice realization. - Not entering new towns for 2G service: Airtel claims to have largest number of base stations, around 136,000-137,000 2G base stations in India. It also claims to have largest network in India covering around 85% of rural India and almost every single town. Going forward, its 2G investments will be focused on continuing to invest wherever they are capacity requirements and will be wary of entering new towns. Africa Operations - Airtel is in number one or two position in 14 of the 17 African countries where it is operational, in line with its Africa strategy of either being number one or being a strong number two. - Airtel believes the number three player or even a weak number two player may not earn profits in the long run in Africa, hence…
