Who Is Making More Revenue

[ravi_patent 28]

http://www.business-standard.com/india/new.../20/03/55598/on

The telecom operators in the country focused on revenues than on increasing subscriber numbers, a move in the right direction, according to a report by global financial services firm Morgan Stanley.

The study is based on the financial data for the September-December 2008 quarter, released by the Telecom Regulatory Authority of India (Trai). It has not taken into account the record 15.4 million users added in January this year.

During the reporting quarter, Bharti Airtel increased its wireless subscriber market share to 24.7 per cent (adding 12 basis points), while its wireless revenue market share rose to 29.7 per cent (adding 90 basis points). Including wireline segment, Bharti Airtel has 22.9 per cent subscriber market share and overall revenue market share of 26 per cent, the report said.

“This supports our view that the company is more focused on revenues than on subscribers,” it added.

Likewise, Idea Cellular increased its wireless subscriber market share to 9.9 per cent (by 23 basis points), and its wireless revenue market share to 10.1 per cent (by 60 basis points).

“We think Idea Cellular is going in the right direction with revenue market share inching up faster than its subscriber market share,” it said.

However, on Reliance Communications (RCom), Morgan Stanley estimates that the company’s wireless subscriber market share fell to 17.7 per cent (9 basis points), while wireless revenue market share dipped to 16.7 per cent (94 basis points).

The gap between its wireless revenue and subscriber market shares rose to 100 basis points during the quarter.

The interconnect as a percentage of the total Trai revenues was in the higher range of 26-31 per cent for all players, but reported earnings were higher for pure mobile operator Idea and lowest for integrated telecom operator RCom at 8 per cent. This could be because RCom has the highest on-net calls, which helped it lower interconnect cost as percentage of the total revenues.

[kshah 452]

Customer care of Airtel is surely differentiator. They do deserve premium. Reliance CC is absolutely no where near to Airtel.

Airtel is so prompt, that most complaints are resolved in less than 48 hours. I have tried thrice.

[Himanshu Singh 19]

ET writes today that Airtel has adjusted gross revenue of more than 7000 crore while Rcomm has 3200 crore. We may recall how Airtel used to boast about being numero uno in terms of number of subscribers.Now they have started singing a new tune about revenues.Obviously they will have more revenues because they offer the most expensive plans and services. Let MNP come and then we may have a better view. They are going to feel the heat of competition from every new operator and their revenue would surely dip as subscribers get fragmented.

[Sadikk 301]

Airtel revenue is anytime better, and remain same for next 3 years at least.

they are movers and shakers of telecommunication.

have support of entire GSM lobby over the world.

They are only company in india to start business outside India under own brand.

they have the capability to become number one telecoms service provider in the world. considering population on India and other populated countries they are willing to start services in.

Good going Mr Mittal.

[faizone 15]

Airtel does not lure people with false promises.. they are good on quality and dont think too much about the customer's purse...

Even their broadband is very reliable except for the actual download and upload speeds which is a grey area in the case of most ISPs...

[SUDYEcaZ 67]

Airtel are cheaters....have used,

quality...they have just quick response to CC and nothing else, most congested network, voice quality is noway comparable to RCDMA or RGSM

Through COAI they lobby with Idean Vodofone to create a cartel and drive the price higer

They try to oppose the compitition, the oppose RGSM entry, and now they are crying over lower termination charge

Try comparing their plans With Reliance or Tata,

Come MNP and it wil start to feel the difference

[Himanshu Singh 19]

Exactly the point i was making. Right since i started using a mobile way back in 2003 as an 11th standard student, airtel has been more expensive than rest of companies in delhi. the cost may not mean much for salaried people but it remains an issue for students and people without a fixed consistent salary. i have used every operator in delhi except airtel.not because i am biased. but none of their plans either is pre or post paid have ever attracted me. and i am talking about normal plans not corporate ones i opted for idea for friends card and then gang card, mtnl for vidyarthi card, reliance for cheaper national calling via std calling card first and via lifetime jaadu pack now, besides voice clarity and unlimited on net calling. airtel somehow has never attracted me except for its coverage to distant places where i rarely go.

[rajeshkatiyar 3]

Dear Friend

both companies serve different classes Airtel is serving cream

Reliance is serving Autowala Airtel is a serious service provider

while Reliance is cheater .The gap between them will widen further

[hritik123 4]

the gap will reduce after reliance gsm launch

[supernova 47]

yes now rgsm and airtel would be direct competitor

[Himanshu Singh 19]

The language used in this forum by some users is downright ugly to put it mildly. Perhaps people dont know how much autowallahs earn in Delhi. Its much more than a white or blue collared professional might be making elsewhere without getting a kick on his back in these days of slowdown. And if being autowallah was bad? There are surely better ways to say that Reliance caters to low end users or users having mid to low usage. Most of the female massage service providers(i hope the real meaning is undestood) put up their ads in leading newspaper and they always have airtel numbers 99 percent times. I havent ever seen a reliance number or for that matter mtnl.So would someone be fair in saying that airtel serves masseurs?

[kshah 452]

I don't think reliance is cheater, perhaps we expect too much for too little from reliance. And they were constrained to do so because of cdma technology.

Reliance gsm will surely success, however, they will be able to attract high revenue customers after some time and perhaps after number portability.

[Sadikk 301]

RGSM is not expecting many customers after MNP enforced.

But they were desperate to launch GSM because of RCDMA churn which wud have gone to Airtel or Vodafone or others.

now they can atleast offer some goodies and retain CDMA churned customers on their GSM network. (Daal ghee me girey ya ghee daal me) its the same.

I can see reliance CDMA going Telstra way of conversion, for voice its GSM and for Data its CDMA.

and they can do good in long run as far as i see major bandwidth issues in india.

GSM 3G is just a hype, and will rest soon, Video calling and other related 3G services are not practical as of now. and it doesnt matter how much data technology supports, what matters is how reasonable it is.

[ravi_patent 28]

@sadik

small correction lifetime customers will contribute to the spectrum needs in cdma, which as you

said is going to be used only for data.

[savramesh 37]

topic started as "who is rich, rcom or airtel?" but now the discussion is going like "who is best, rcom or airtel?".... hihi...

[ravi_patent 28]

@ ramesh

i remeber having read recently that per minute realization for rcom and airtel differs by only 3 paise(61p and 64p respectively).and probably that could be due to gsm expansion capex.so both are capable to make money,at the moment airtel is making more money..

@dear rajesh

probably you might have been cheated ,but i am using reliance services since 2003

and had never faced any issues.

Edited March 11, 2009 by ravi_patent

[starnet 7]

GSM 3G is just a hype, and will rest soon, Video calling and other related 3G services are not practical as of now. and it doesnt matter how much data technology supports, what matters is how reasonable it is.

I believe that GSM data will compete directly with 3G CDMA (EVDO) for customers who want internet access on their computers without using ADSL wired lines. There will be huge market for these 3G USB modem dongles (both CDMA EVDO as well as 3g GSM), but for that to happen, pricing of both the USB modems as well as the cost of usage has to come down. Prepaid data plans have to become more widely available. For some reason people in our country trust prepaid plans more than postpaid plans. The market for mobile data is set to change drastically in next 1-2 years.

In all this where the wimax will settle is still not known.

[kshah 452]

Expecting GSM data to replace any wired or wireless data connection is just a dream. GSM data is pathetic, even in us and europe. wireless data except wifi and wimax has very high latency and can not be used for many latency sensitive application like certain gaming, full resolution video conferencing etc.

average speed of evdo rev A is 500 kbps in us and 3G GSM is hardly 350 kbps.

[starnet 7]

Expecting GSM data to replace any wired or wireless data connection is just a dream. GSM data is pathetic, even in us and europe. wireless data except wifi and wimax has very high latency and can not be used for many latency sensitive application like certain gaming, full resolution video conferencing etc.

average speed of evdo rev A is 500 kbps in us and 3G GSM is hardly 350 kbps.

How many residential/retail customers in USA are using their internet connections for video conferencing? I bet not many, even among those who are having FIOS connections.

From what I have read, I believe pings to servers based in USA for people using on EVDO Rev A service from Reliance in Delhi will be around 500ms and those who are using BSNL or Tata Indicom's EVDO Rev0 service will be about 600ms. Pings to servers in USA from my PC on an Airtel ADSL connection in Delhi are around 320ms as of now.

I agree these pings are on higher side for customers needing connections for gaming and even decent quality VOIP. But if the pricing is right, many will still buy/use EVDO because it is anytime better than dial-up. In fact anything is better than dial-up and the present CDMA 2000 1x service.

[HetalDP 947]

Expecting GSM data to replace any wired or wireless data connection is just a dream. GSM data is pathetic, even in us and europe. wireless data except wifi and wimax has very high latency and can not be used for many latency sensitive application like certain gaming, full resolution video conferencing etc.

average speed of evdo rev A is 500 kbps in us and 3G GSM is hardly 350 kbps.

Nope My Friend in USA on AT&T get constant 1.5+ mbps on HSDPA in NY State

[Himanshu Singh 19]

What is HSDPA?

[kshah 452]

Expecting GSM data to replace any wired or wireless data connection is just a dream. GSM data is pathetic, even in us and europe. wireless data except wifi and wimax has very high latency and can not be used for many latency sensitive application like certain gaming, full resolution video conferencing etc.

average speed of evdo rev A is 500 kbps in us and 3G GSM is hardly 350 kbps.

Nope My Friend in USA on AT&T get constant 1.5+ mbps on HSDPA in NY State

My sister is using Iphone on AT&T and her husband BB. THey says so. Also read this recent january report

http://www.computerworld.com/action/articl...ticleId=9126865

[Arun 795]

What is HSDPA?

High-Speed Downlink Packet Access. 3G Technology for GSM.