Idea Cellular has reported 34.16 million mobile Internet subscriptions for the quarter ended December 31, 2014, registering a 10.44% growth from 30.9 million mobile data subscriptions in the previous quarter.
Remember that Idea Cellular had started culling incidental Internet users from Q3-FY14, due to which its mobile Internet subscription base had declined to 25.52 million in Q3-FY14 and 25.25 million in Q4-FY14. Incidental data users are those who have consumed less than 1 MB/month.
It’s worth noting that Idea Cellular had resumed 3G services in 10 circles through its intra-circle roaming agreement with Airtel and Vodafone in May this year. It’s therefore possible that this contributed to the growth in Idea Cellular’s 3G subscription base. Vodafone India and Airtel had witnessed a similar growth in the previous quarter.
3G Mobile Internet connections
The telco has reported a 3G data connection base of 12.95 million for the quarter, up from 10.5 million connections in the previous quarter and from 5.86 million connections in the same quarter last year. 3G data ARPU has increased 1.03% to Rs 197 from Rs 195 in the previous quarter, while the 3G Internet usage grew 1.73% to 705 MB from 693 MB in the previous quarter. The data on 3G Internet for Idea Cellular at the end of Q3-FY15:
– 3G Internet connections: 12.95 million, up from 10.52 million in the previous quarter.
– 3G Internet ARPU per Internet customer: Rs 197, up from Rs 195 last quarter
– 3G Internet Usage: 705 MB per connection, up from 693 MB last quarter
– 3G Internet volume: 24.98 billion MB, up from 19.79 billion MB in the previous quarter.
– 3G sites added: 2,580 sites added, compared to 2,648 sites in the last quarter.
– 3G Sites: 27,744 sites, up from 25,164 sites in the previous quarter.
– 3G phone penetration: Over 18.7% of Idea users own high speed 3G devices.
Mobile Internet revenues cross Rs 1200 crore mark
As per our calculations, Idea Cellular’s mobile Internet revenues grew by 18.61% during the quarter to Rs 1239.28 crore.
The contribution of Internet revenues to its service revenues grew to 15.7% for the quarter, as compared to 14% in the previous quarter and 11.5% the quarter before.
Mobile Internet Internet
– The contribution of non-voice revenues (Internet & VAS) to Idea Cellular’s overall revenues also improved significantly to 23.10% for the quarter, up from 21.1% in the previous quarter and 17.8% in the quarter before. The growth is primarily driven by the increase in data revenues although the non-data VAS contribution grew to 7.4% for the quarter, from 7.1% in the previous quarter.
– 2G Connections: Idea Cellular added only 0.8 million 2G Internet connections for the quarter, taking its 2G data connection base to 21.1 million connections. The lack of growth in the 2G base might be worrying for the telco, unless Idea is transitioning users to 3G networks.
– Mobile Internet volume grew significantly to 46.07 billion MB, up 16.85%% from 39.4 billion MB in the previous quarter.
– The average realization per MB increased to Rs 0.269 per MB for the quarter, from Rs 0.265 per MB in the previous quarter.
– Blended Internet ARPU (2G + 3G) grew to Rs 126, from Rs 119 in the previous quarter and Rs 91 in the same quarter last year. This significant growth on a YoY basis is due to the removal of incidental users.
– Blended usage per Internet subscription also grew to 470 MB for the quarter, up from 447 MB in the previous quarter and 309 MB in the same quarter last year. Quite similar to Internet ARPU, the significant YoY growth in Internet usage is due to the removal of incidental users.