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Revenue and Usage

Chapter 2 : Revenue and Usage

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For all the parameters, Metros indicate data for Delhi, Mumbai & Kolkata. Data for Chennai service area has been included in Circle A, as part of TN

ARPU arrived after adjusting interconnect charges

The data contained in the section A & B covers the licensees, who have been providing service during the entire period from 1st January, 2013 to 31st March, 2013 in the various service areas.

There may be slight change in the parameters presented in per subscriber terms for the previous quarters, as one of the service providers has submitted revised data for subscriber numbers for the month of Sep-12

Section A: GSM Service

Table 2.1: Key Indicators - GSM Service

* Minutes of Usage

Chart 2.1: Outgoing Traffic Pattern - GSM Service

1.56% 41.79% 37.78% 0.43% 6.09% 12.17% 0.18%

1.44% 42.12% 37.41% 0.39% 6.23% 12.24% 0.16%

Dec-12

Chart 2.2: Proportion of prepaid subscribers - GSM Service

60%

65%

70%

75%

80%

85%

90%

95%

100%

Circle A Circle B Circle C Metros All India

95.79% 98.08% 98.38% 89.56% 96.46%

95.68% 98.02% 98.33% 88.77% 96.34%

Dec-12 Mar-13

Note: Subscriber figures are closing figures as on the last day of the respective quarters

2.1 Market share of prepaid segment slightly declined from 96.46% at the end of Dec-12 to 96.34% at the end of Mar-13.

Table 2.2: Monthly ARPU - GSM Service

(` per month) Circle category Postpaid Prepaid Blended

Circle A 508 93 111

Circle B 513 87 95

Circle C 466 89 95

Metro 553 85 137

All India 519 89 105

All private SPs 538 92 109

BSNL/MTNL 395 69 81

2.2 The all India blended ARPU per month increased from `98 in QE Dec-12 to `105 in QE Mar-13.

2.3 Prepaid ARPU increased from `83 to `89 and postpaid ARPU decreased from `527 to `519 in this quarter.

Table 2.3: Composition of Revenue (%) - GSM Service

Item QE Dec-12 QE Mar-13

Rental Revenue 18.79 18.12

Revenue from Calls 52.11 52.67

Revenue from SMS 5.84 5.29

Revenue from Roaming 8.99 8.72

Other Revenues * 14.28 15.20

* Other revenue includes revenue from other value added services, installation etc.

Table 2.4: MOU & SMS (per subscriber per month) - GSM Service Circle

category Postpaid Prepaid

Outgoing

MOU Incoming

MOU Total

MOU Outgoing

SMS Outgoing

MOU Incoming

MOU Total

MOU Outgoing SMS

Circle A 546 441 987 75 175 174 349 42

Circle B 525 444 969 52 161 191 352 18

Circle C 512 437 948 46 184 229 413 18

Metro 505 364 869 69 196 172 367 37

All India 527 419 946 66 172 189 361 28

Circle

category BLENDED [Postpaid + Prepaid]

Outgoing MOU Incoming MOU Total MOU Outgoing SMS

Circle A 191 186 377 43

Circle B 168 196 364 19

Circle C 189 233 422 19

Metro 230 193 423 40

All India 185 197 383 30

2.4 On an all India average, the overall MOU per subscriber increased by 6.28% from 360 in QE Dec-12 to 383 in QE Mar-13.

2.5 Prepaid MOU per subscriber increased by 6.62% (from 339 to 361), while postpaid MOUs decreased by 0.76% (from 953 to 946).

2.6 The overall ratio of incoming-outgoing MOUs remained unchanged at 52:48.

2.7 Outgoing SMS per subscriber per month decreased from 39 in QE Dec-12 to 30 in QE Mar-13.

Table 2.5: Outgoing Traffic (MOU) Pattern - GSM Service Circle

Average Subscriber outgo* per minute

2.8 The tariff plans are of bundled nature and the trade-off is generally between monthly fixed charges and Variable (call) charges. The average outgo per outgoing minute (=Rental revenue plus call revenue per outgoing minute), therefore, is a realistic indicator of tariff levels. The table below provides the figures for the quarter ending Mar-13.

Table 2.6: Average subscriber outgo* per outgoing minute - GSM Service

(` per month)

Circle

Category Postpaid Prepaid Blended

Circle A 0.57 0.48 0.49

Circle B 0.59 0.46 0.46

Circle C 0.65 0.42 0.43

Metros 0.66 0.51 0.55

All India 0.60 0.46 0.48

* Includes both Rental and call charges

2.9 All India average subscriber outgo per outgoing minute increased from

`0.47 in QE Dec-12 to `0.48 in QE Mar-13.

Table 2.7: Trends of Key Parameters - GSM Service

2.10 Service Area wise statistics are available at Annexure-2.1.

Parameter Mar-12 Jun-12 Sep-12 Dec-12 Mar-13

1. ARPU (` Per month) 97 95 95 98 105

2. MOU per subscriber per month 346 346 343 360 383 3. Outgoing MOU per subscriber

per month

3.1 Local (Intra-circle) 135 136 133 142 150

3.2 NLD (inter-circle) 32 31 32 33 35

3.3 ILD 0.3 0.3 0.3 0.3 0.3

4. Outgoing SMS per subscriber

per month SMS 37 38 36 39 30

5. Average subscriber Outgo per

outgoing minute (`) 0.49 0.48 0.48 0.47 0.48

Section B: CDMA – Full Mobility Service

Table 2.8: Key Indicators – CDMA Full Mobility Service

Parameter QE Dec-12 QE Mar-13 % Change

Subscriber Base in millions* 65.1 61.5 -5.65

Share of Prepaid (%) 90.8% 90.7% -0.13

Incoming MOUs per subs per month 113 134 18.59

Outgoing MOUs per subs per month 117 141 20.38

Outgoing SMS per subs per month 21 18 -16.89

ARPU (` Per month) 80 95 19.13

* Subscriber figures are closing figures as on last day of the quarter.

Chart 2.3: Outgoing Traffic Pattern – CDMA Full Mobility Service

Chart 2.4: Proportion of prepaid subscribers – CDMA Full Mobility Service

2.11 Market share of Prepaid segment slightly declined from 90.78% in QE Dec-12 to 90.66% in QE Mar-13.

Table 2.9: Monthly ARPU – CDMA Full Mobility Service

(` per month)

Circle category Postpaid Prepaid Blended ARPU

Circle A 460 66 113

Circle B 386 51 69

Circle C 409 54 69

Metro 490 64 121

All India 453 59 95

2.12 The All India blended Average Revenue Per User (ARPU) per month has shown an increase of 19.14% from Rs.79.95 in QE Dec-12 to Rs.95.25 in QE Mar-13. ARPU for Prepaid service increased by 20.05% from Rs.49.08 in QE Dec-12 to Rs.58.92 in QE Mar-13. ARPU for Postpaid service has increased by 1.24% from Rs.447.72 in QE Dec-12 to Rs.453.28 in QE Mar-13.

2.13 M/s Tata Teleservices have closed CDMA operations in Assam, North East and J&K service areas in the month of Jan-13 and M/s Sistema Shyam Teleservices have discontinued the services in Andhra Pradesh, Assam, North East, J&K, Himachal Pradesh, Madhya Pradesh, Orissa, Bihar, Haryana and Punjab service area in the month of Mar-13. M/s Reliance Communication Ltd also disconnected a substantial number of inactive subscribers in the month of Dec-12. As a result, significant impact can be seen in the related parameters i.e. ARPU, MOU etc. in this quarter.

Table 2.10: Composition of Revenue (%) – CDMA Full Mobility Service

Item QE Dec-12 QE Mar-13

Rental Revenue 20.2 20.4

Revenue from Calls 42.2 42.7

Revenue from SMS 1.8 1.6

Revenue from Roaming 4.2 4.8

Other Revenues* 31.6 30.5

* Other revenue includes revenue from other value added services, installation etc.

Table 2.11 : MOU & SMS (per subscriber per month) – CDMA Full Mobility Service

Circle

category Postpaid Prepaid

Outgoing

MOU Incoming

MOU Total

MOU Outgoing

SMS Outgoing

MOU Incoming

MOU Total

MOU Outgoing SMS

Circle A 270 158 428 15 108 117 225 22

Circle B 430 209 639 14 120 134 254 14

Circle C 622 335 957 12 164 177 341 10

Metro 295 152 447 19 126 123 249 21

All India 325 174 499 16 122 130 252 18

Circle

category Blended (postpaid + prepaid) Outgoing incoming MOUs increased by 20.38% and 18.59% respectively.

2.15 Prepaid and postpaid MOUs increased by 20.63% and 3.90%

respectively in this quarter.

2.16 Outgoing SMS per subscriber per month declined from 21 in QE Dec-12 to 18 in QE Mar-13.

Table 2.12: Outgoing Traffic Pattern – CDMA Full Mobility Service Circle

Table 2.13: Average subscriber outgo* per outgoing minute – CDMA Full Mobility Service

[` Per min]

Circle

Category Postpaid Prepaid Blended

Circle A 1.04 0.47 0.62

Circle B 0.63 0.35 0.40

Circle C 0.45 0.30 0.32

Metros 0.89 0.45 0.56

All India 0.84 0.40 0.49

* Includes both Rental and call charges

2.17 All India average subscriber outgo per outgoing minute remained unchanged at `0.49 in QE Mar-13.

Table 2.14: Trends of Key Parameters – CDMA Full Mobility Service

Parameter Mar-12 Jun-12 Sep-12 Dec-12 Mar-13

1. ARPU (` Per month) 75 75 78 80 95

2. MOU per subscriber per

month 229 229 225 230 275

3. Outgoing MOU per subscriber per month

3.1 Local (Intra-circle) 95 96 93 96 114

3.2 NLD (inter-circle) 22 19 20 21 26

3.3 ILD 0.37 0.15 0.16 0.17 0.23

4. Outgoing SMS per

subscriber per month SMS 16 22 25 21 18

5. Average subscriber Outgo

per outgoing minute (`) 0.47 0.47 0.49 0.49 0.49

Service Area wise statistics are available at Annexure-2.2.

Section C: Internet Service

Revenue of SPs

2.18 The Revenue of the Internet Services (excluding internet access by wireless phone subscribers) as reported by SPs was `3083.62 crores for the quarter ending Mar-13 as compared to `2,978.85 crores for the quarter ending Dec-12, showing an increase of 3.52% over the previous quarter.

Internet Telephony

2.19 As per report submitted to TRAI, 32 SPs are providing Internet Telephony service presently. Total Minutes of Usage (MOU) for Internet Telephony decreased from 260.31 million in QE Dec-12 to 249.57 million registering a negative growth of 4.12% in QE Mar-13.

Chart 2.5: Trends in MOU for Internet Telephony

Note : MTNL and Zylog System (India) Ltd. have stopped Internet Telephony Service.

Chapter 3 : Financial

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