Showing posts with label data traffic. Show all posts
Showing posts with label data traffic. Show all posts

Monday, December 9, 2013

India is vodafone's 2nd largest country in data traffic, 3G is 30% of data traffic

India is now Vodafone’s second largest business in terms of data traffic. This was disclosed by Vodafone Group CTO Steve Pusey during the company’s earnings conference call last week.
He added that India accounted for around 40 petabytes of the total 85 petabytes data traffic in the AMAP (Africa, Middle East and Asia Pacific Region) region in the first half year, doubling year on year (YoY).
Last week, the telco had reported a moderate increase in its data subscriptions, clocking 42.5 million data subscriptions of which 4.5 million were 3G subscriptions. The data revenues however had declined to £111 million for the quarter ended September 30, 2013, down from £123 million in the previous quarter.
Later in the call, Nick Read, Vodafone CEO (Africa, Middle East and Asia Pacific Region) said its 3G browsing revenues are up 190% for this quarter and the smartphone penetration of its customer base has increased by 40% since the start of FY14. 3G traffic now accounts for 30% of the total data traffic. ”We see a massive opportunity now in terms of ARPU uplift, and in terms of further growth coming from India for the operators that are willing to put significant investment in data networks, especially in the urban areas.”
- Vodafone plans to setup 27,000 3G sites and extend its outdoor 3G coverage to over 90% of urban areas in India. The company also plans to extend its 3G coverage to 200 new towns in the country. There are also plans to setup 14,000 2G sites and roll out 14,000 km of fibre across 40 Indian cities, which will be extended t0 100 cities later.
- Read noted the top three operators have started to increase their existing market share and currently account for 66% of the revenues for the quarter. “As the smaller players, the more vulnerable players, leave the circles, or the market completely, we are able to grab more of the minutes and more of the customers in a dual SIM environment”.

source: medianama.com

Bharti Infratel : awaiting stronger 3G signals

Expectation of a higher dividend, attractive valuations and growth prospects on the back of an uptick in 3G usage saw the Bharti Infratel stock jump 5% in trade today.  With the Bharti Infratel management clarifying that it will not pursue M&A activities in Africa and aggressive investments in 3G by incumbent operators saw the stock gain 13% over the past month. The recent uptick comes after underperformance over a one year period due to static tenancy ratios which could fall with consolidation and talks of 8% licence fee on tower revenues .

Given the company's stand on Africa acquisition, Goldman Sachs analysts believe that there is a low possibility of any big ticket acquisition, leaving room for Bharti Infratel to return money to shareholders. The research firm estimates that the company is likely to pay a special dividend of Rs 3.5 per share in the March quarter of FY14 taking the total dividend for FY14 to Rs 9 a share. Further, the analysts have increased earnings per share upwards on the back of an expected growth in data traffic. “At current FY14E multiples of 1.9 times its price to book value and return on equity of 7.7%, the risk-reward is balanced with upside potential largely driven by faster 3G deployment and better-than-expected dividend payout,” say Goldman Sachs analysts led by Sachin Salgaonkar.

source: www.bussiness-standard.com