NEW DELHI: Bharti Airtel is of the view that average revenue per users (ARPUs) would have touched Rs 200 already had the pandemic not happened, and believes that the company should get there in the next few months, according to a latest Goldman Sachs report.
In a recent note, Goldman Sachs said it had hosted Bharti Enterprises Chairman Sunil Bharti Mittal at its CIO Tour on December 11, where he shared thoughts on various aspects of the telecom business, including his outlook on industry structure and tariffs, 5G, smartphones/devices, among others.
Talking on the key takeaways from the session, it said Bharti Airtel believes ARPUs would have reached Rs 200 already if COVID-19 had not happened, and believes the company should get there in the next few months.
It further said as per Bharti, the ideal ARPU for the industry is Rs 300, but that it could be a longer journey to get there.
“ARPUs at Rs 300 does not mean there will not be offerings for consumers at Rs 100 price points, and the company believes high-end customers should be able to pay USD 6-8 per month,” it said.
Bharti mentioned that it will not raise tariffs at the cost of market share, Goldman Sachs report stated.
According to the report, Bharti Airtel believes the current industry structure (4 players) is ideal, but expects market share to consolidate further.
“..it believes the top two operators can end up with around 80 per cent market share (currently around 75 per cent) in 12-18 months,” the note said.
Bharti does not expect a material market share difference between the top two players, it said adding that the company’s focus is on higher quality customers, and it has consistently been able to attract and retain mid-to-high end users.
On 5G, the report said Bharti Airtel believes if spectrum prices were to remain at current levels “they may not participate in auctions in 2021”.
“However, by 2022, Bharti may need to buy 5G spectrum – the company expects 5G launch, at least in India’s main cities, to start happening in 2-3 years. Per Bharti, there are currently not enough use cases for 5G and devices will need to be more widely available at lower price points for 5G to happen,” it said.
The company does not think 5G will lead to incremental capex as it would just be substituted by a reduction in 4G capex, the report added.
Bharti Airtel’s execution continues to be near-flawless, Goldman Sachs said adding that it has been encouraged by the closing of the incremental market share gap between Bharti and Jio.
“While a tariff hike is inevitable in the near term in our view, given Vodafone Idea’s stretched balancesheet, we see Bharti continuing to win market share in the interim; the company’s current 32 per cent market share can potentially rise to mid-to-high 30 per cent in the foreseeable future if tariffs do not move up rapidly,” the report said.
Source: Press Trusts of India
Vi showcases 5G
NEW DELHI: Vodafone Idea Limited (VIL), leading telecom operator, today demonstrated a range of 5G-based technology solutions as part of its ongoing 5G trials on government allocated 5G spectrum in Pune, Maharashtra and Gandhinagar, Gujarat.
According to Ravinder Takkar, MD & CEO, Vodafone Idea Limited, “With our 5G trials underway, Vi is preparing to take India on the next journey of fifth generation wireless mobile communication technology. Our 5G trials showcase a whole new world of possibilities across various domains that promise a new era of technology advancement in India. I am confident that 5G will bring a better tomorrow that will deliver significant benefits to consumers, businesses and society, driving digital economy growth in India.”
Today, we demonstrated a range of 5G-based #technology solutions as part of Vi's ongoing #5G trials. Here's a glimpse of our differentiated use case demos for enterprises & consumers. #5GForABetterTomorrow #Vi pic.twitter.com/3GGoXVzfKe
— Vi_News (@VodaIdea_NEWS) November 26, 2021
With the purpose for a better tomorrow, Vi has been conducting 5G trials and developed a wide range of use cases relevant for Enterprises and Consumers in India. Vi has partnered with industry leaders like L&T Smart World & Communication, Athonet, Indian start-ups like Vizzbee & Tweek Labs, and technology leaders – Ericsson and Nokia for trialling use cases in the two locations.
Committed to helping its customers thrive and have a better tomorrow, Vi is leveraging the power of 5G technology across segments such as industry 4.0, smart cities, smart healthcare, smart workplace, smart education, smart agriculture, gaming, amongst others. Vi’s trials have proven that high data speed, low latency and reliability of 5G technology, can bring about massive developments by enhancing business performance, revolutionizing customer experience, changing consumer lifestyle and positively impacting people dwelling in remote corners of India.
Vi has been allocated 26 GHz and 3.5 GHz spectrum in the mmWave band by the DoT, for 5G network trials and use cases. Vi has achieved peak speeds in excess of 1.5 Gbps on 3.5 GHz, more than 4.2 Gbps on 26 GHz and up to 9.8 Gbps on backhaul spectrum of E-bands.
The 5G trial network set up by Vi in Pune, deploys Ericsson Radios and Ericsson Dual Mode Core based on cloud native technology comprising of 5G SA, 5G NSA & LTE packet core functions. All use cases demonstrated in Pune have been developed over Ericsson’s 5G technology solutions.
In Gandhinagar, Vi is using Nokia’s AirScale radio portfolio and Microwave E-band solution for the trial that support enterprises, both large and small and medium businesses with reliable connectivity. Vi use cases in Gandhinagar were demonstrated via a live telecast at the special media preview held in Pune.
Vi launches new tariff plans for Digital India
NEW DELHI: Vodafone Idea Limited (VIL), India’s leading telecom service provider, has announced the launch of its new tariff plans for prepaid users in India. The new plans will be available starting 25th November 2021.
The new plans will start the process of ARPU improvement and help address the financial stress faced by the industry.
These tariff plans will allow VIL to continue improving India’s Fastest Mobile Network, verified by Ookla®, the global leader in fixed broadband and mobile network testing applications. Vi remains committed to play its role in accelerating the realization of the Digital India vision of the government.
In line with its commitment to providing its customers with simple and convenient products, Vi has curated an optimum range of feature rich plans for both voice and data. Customers can avail their benefits by selecting the plan best suited to their specific needs.
Users can visit www.myvi.in for more details, starting 25th November, 2021.
Airtel announces revised mobile tariffs
NEW DELHI: Bharti Airtel has always maintained that the mobile Average Revenue Per User (ARPU) needs to be at Rs 200 and ultimately at Rs 300, so as to provide a reasonable return on capital that allows for a financially healthy business model.
We also believe that this level of ARPU will enable the substantial investments required in networks and spectrum. Even more important, this will give Airtel the elbow room to roll out 5G in India.
Therefore, as a first step, we are taking the lead in rebalancing our tariffs during the month of November. Accordingly our new tariffs as indicated below will come into effect from November 26, 2021.
Airtel’s New Prepaid Tariffs
|Current Price (Rs)||Validity||New Price (Rs)||Benefits|
|Tariffed Voice Plans|
|79||28 days||99||50% more talktime of Rs 99, 200MB data
1p/sec voice tariff
|Unlimited Voice Bundles|
|149||28 days||179||Unlimited calling, 100 SMS/day, 2 GB data|
|219||28 days||265||Unlimited calling, 100 SMS/day, 1 GB/day data|
|249||28 days||299||Unlimited calling, 100 SMS/day, 1.5 GB/day data|
|298||28 days||359||Unlimited calling, 100 SMS/day, 2 GB/day data|
|399||56 days||479||Unlimited calling, 100 SMS/day, 1.5 GB/day data|
|449||56 days||549||Unlimited calling, 100 SMS/day, 2 GB/day data|
|379||84 days||455||Unlimited calling, 100 SMS/day, 6 GB data|
|598||84 days||719||Unlimited calling, 100 SMS/day, 1.5 GB/day data|
|698||84 days||839||Unlimited calling, 100 SMS/day, 2 GB/day data|
|1498||365 days||1799||Unlimited calling, 100 SMS/day, 24 GB data|
|2498||365 days||2999||Unlimited calling, 100 SMS/day, 2 GB/day data|
|48||Unlimited||58||3 GB data|
|98||Unlimited||118||12 GB data|
|251||Unlimited||301||50 GB data|
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