You can call in now to listen to the Idea Cellular concall: +91-22-6629 0339
3:05 pm: (Himanshu Kampania) 8.8% revenue growth on sequential quarter basis. It is ready to shift from transaction based ARPU led business to lifetime value led subscriber relationships. The outlook for the business remains a combination of headwinds and tailwinds. The headwinds: persistent volatile environment, with freefall in rupee exchange rate, high leverage in terms of 3G investments. The return on capital employment and PAT is below par. On the regulatory front: it with deep conviction, the company challenged the TDSAT, when DoT stopped the 3G intracircle roaming arrangements. No change in status on Idea-Spice merger dispute.
3:10 pm: The industry reported subdued performance, though better than last year. The indian telecom revenue, has slipped to 2.4% of GDP, lower than its peak of 2.9%. We lack way behind other countries, which are up to 4.7% of GDP. Indian telecom consumer spends lack behind most markets in terms of percentage of GDP. We believe consumer spends will increase. Idea revenue growth continues to outpace the mobile industry. YoY growth is 29%, the fastest growing mobile operator. Revenue marketshare is 14%, consolidating its third ranking in the sector.
Gross revenue – Q3 typically has brought back cheer, with incremental revenue growth of Rs 410 crore over quarter two.
3:20 pm: one in four porting out customers in India ported to Idea. The process of the Indian consumer adopting the digital lifestyle has been slow. As the overall wireless broadband ecosystem improves, growth of wireless data spread will be natural. We are have now had our high speed wireless data investment in 2300 towns in 20 service areas and introduced Idea branded smart phones, in small towns and rural areas . The trickle of change has just begun.
– Provisioned 3G servicxes for than 5% of our base. Similar to 2G EOP, we will report only active subscribers. We have more than 2.25 million active 3G, with usage at 235 mb per month, and 3g data incremental ARPU at Rs 79. Their voice and VAS data is separately accounted.
3:27 PM: financial info being shared. Much of this is in the quarterly report, here.
3:29 PM: Q&A beginning.
3:32 PM: In Q3, the gross adds are on the higher side. In terms of churn, we have a different basis on which we do our reporting. Our assessment is that there is hyper competition, and high level of intense war in the marketplace, and Idea churn performance is similar to others.
3:34 PM: On the interconnect roaming agreement – TDSAT has put a stay on any coercive action on the government, so it is business as usual.
3:39 PM: Current tariff is holding. While we continue to have rates as flat, the incoming-outgoing ratio to the lowest cost operator is the same. I don’t see any reversal of rates, and the battle will be on sales and marketing. On a nationwide basis, the rate has been flat.
3:41 PM: Growth of minutes is across circles, both in established circles and new. Subscriber growth is rural led. We’re not seeing any slowdown in any market.
3:45 PM: In a market, if there is a low cost operator, the outgoing ratio adjusts towards low cost operator, and the leading operator gets more incoming calls.
3:52 PM: isn’t 3G roaming a zero sum game? We’re not seeing this as a battle for financials. It is in the interest of consumers and the industry that a choice be provided to the customer, and the expansion of wireless broadband happens in the industry. The market for wireless broadband will only grow only if everyone works towards it. If there will be islands, then it won’t grow. If there will be larger coverage, it will help the industry and the market.
3:54 PM: We have maintained that our company is focused on small town and rural markets, and we are seeing a great run with new subscribers entering the category. We hold a view that there are new customers who have not entered the voice category, which will enter it in the next 2-3 years. Hyper competition phase is more a phenomenon of the metros, and this is where the penetration is higher than the population. The dual SIM is possibly on the decline.
3:56 PM: Handset revenue is included in revenue, but not a part of non-voice revenue or voice revenue. It is a part of ‘others’. Migration of subscriber base to new tariff plan? The migration will take four quarters, and we have only completed two quarters of migration.
3:58 PM: It is our stated position that VAS in India is far lower than what we have seen in other parts of the world, and as the market matures, it will grow. More and more consumers are adopting wireless data services. We are expected VAS as a percentage to continue to grow.
4:02 PM: we got disconnected from the concall. Dis-credit for call drop goes to Airtel #fail
4:10 PM: The operators at Chorus Call India haven’t been picking up calls, so that’s that. We’ll try and update later from the call transcript.