DATA REVENUE
Airtel, Jio help telecom industry record 3.87% sequential growth in AGR in last quarter of FY24 to Rs 70,462 cr
The telecom industry saw a 3.87% sequential growth in adjusted gross revenue in the last quarter of FY24, driven by Airtel and Reliance Jio. Vodafone Idea and BSNL faced declines in mobile services AGR. Private telecom operators raised headline rates, leading to increased revenue. The Department of Telecommunications reported higher licence fee and spectrum usage charge collections. Broadband subscribers increased to 924.07 million, with wireless Arpu at Rs 153.54. Overall sectoral minutes of consumption and telephone subscribers also showed growth.
Jio, Airtel hike mobile tariffs: Here are some tips to save money on your mobile bills
Reliance Jio and Airtel are preparing to raise tariffs from July 3, 2024, prompting prepaid users to recharge before this date to avoid higher costs. Postpaid users will face immediate price adjustments. The goal is to increase Average Revenue per User (ARPU) for both telecom giants, affecting millions of subscribers across India.
After Jio, Airtel and Vi answer revenue call, dial up tariffs
While Airtel and Jio - which dominate the market - say they need to improve returns after paying high prices for 5G airwaves in 2022, Vi is looking to back up its recent ₹23,000 crore equity fundraising efforts as it strives to become more competitive, stem user losses and repair a stressed balance sheet to pay vendors and statutory dues. Analysts said the three telcos will see a 13-17% rise in ARPU with the main effect being felt in second and third quarters of this fiscal year.
Post tariff hikes: Users could spend Rs 47,500 crore more, trade up data plans
The recent hefty tariff hikes by major Indian telecom companies, Reliance Jio and Bharti Airtel, are expected to significantly increase consumer spending on telecom services, potentially adding Rs 47,500 crore annually. These increases, aimed at boosting 5G monetisation, raise the cost of entry-level 5G plans by up to 71%. Analysts anticipate a 15-17% rise in average revenue per user (ARPU) for Jio and Airtel, driven by up-trading to higher data allowance plans. Despite risks of subscriber churn, the hikes are seen as pivotal for enhancing profitability and investment returns in the telecom sector.
Unusual T20 cricket world cup timings impact TV viewership
The ICC T20 Men's World Cup has seen an 8% drop in TV ratings for the first 30 matches compared to 2022, despite a 4% rise in cumulative audience reach to 205 million. The average ratings have dropped 8% to 0.97 TVR for all-India male and female 2+ audiences and 13% to 1.2 TVR for all-India male 15+ audiences.
Tariff hikes signal better profitability for telecom industry going forward: ICRA
Bharti Airtel and Reliance Jio announced significant tariff hikes, impacting consumers. The industry is set to experience improved financial metrics and operating profits, allowing for deleveraging and funding capex. ICRA forecasts strong industry revenue growth and debt level moderation, with expectations of enhanced Return on Capital Employed for FY2025.
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How GenAI is opening up new revenue streams for IT firms and GCCs
The rise of generative AI (GenAI) presents an opportunity for IT firms to unlock new revenue streams. Companies like Accenture, Infosys, and Tech Mahindra, alongside global capabilities centers (GCCs), are seeing a surge in data standardisation work. This is driven by the vast amount of "uncleaned/unstructured" data held by their clients and parent companies.
Telco revenues surged to Rs 2.3 lakh crore in FY24: CLSA
The Indian telecom industry's gross revenue surged 87% to Rs 2.39 lakh crore in FY24, driven by the launch of services by Reliance Jio. Jio and Bharti Airtel gained subscribers at the expense of Vodafone Idea. The two top telcos now control 78% of sectoral revenue, expected to rise to 83% by FY26. Vi's revenue market share fell to 15.7%, while Airtel and Jio saw revenue growth, with Jio leading at 41.4% RMS.
Telecom sector revenue surges 87% to Rs 2.4 lk cr in FY24: Report
Telecom sector revenue in FY24 reached Rs 2,39,900 crore ($29 billion), an 87% increase from its FY19 low following Reliance Jio's market entry and about 40% higher than FY16 figures, according to a CLSA report. This surge reflects the continuing subscriber gains by Jio and Airtel at Vodafone Idea's expense, with Jio and Airtel now controlling 78% of the sector's revenue combined, a figure CLSA expects to rise to 83% by FY26.
Prioritise 6 GHz spectrum for 5G, roll out fair share data network usage norm: COAI to government
COAI emphasizes the need for massive spectrum resources like Bharat 6G Alliance and Vision for 6G innovations and deployment.
Telcos likely to see modest revenue growth in June Qtr
Analysts expect a modest 2.5-3% sequential increase in revenue growth for the telecom sector in the June quarter. Despite higher data usage during the IPL cricket tournament and increased demand for international roaming packs during the summer holiday season, revenue growth is expected to be limited. This is due to many mobile users still paying lower 4G rates even after opting for 5G packs, and most subscribers having large amounts of unused data, reducing the need for costlier mobile broadband plans.
Airtel, Jio free cash flow seen rising amid falling capex spends, growing ARPU
Analysts predict Bharti Airtel's and Reliance Jio's free cash flows to rise in FY26, reaching approximately Rs 56,000 crore and Rs 38,500 crore, respectively. This growth stems from reduced capital expenditures and higher average revenue per user (ARPU). Both telcos expect a surge in ARPU driven by tariff hikes and increased data usage amid 5G deployments
Hewlett Packard surges over 12% as AI-server demand powers strong results
Analysts at Bernstein said this suggests potential for HPE and peer Dell Technologies to have "very strong shipments over the next quarter or two as they deliver on backlog", but it depends upon customers being willing to take deliveries earlier.
Telcos now targeting T20 cricket world cup to boost data usage, ARPU
Telecom companies are capitalizing on the cricket fever post IPL by launching low-priced data packs and bundled subscriptions for the upcoming World Cup to boost data usage and revenue per user.
European shares slip as energy counters weigh
European shares slipped on Tuesday as weakness in crude prices dragged energy stocks, while investors refrained from placing huge bets before the European Central Bank's interest rate decision later this week.
Reliance Jio, Bharti Airtel's returns on investment set to double in 4 years
Macquarie Research estimates Airtel's ROCE (return on capital employed) to surge to 10-19% during FY25-28 from 2-6% in the last more than a decade, aided by tariff hikes, better subscriber mix and capex moderation. Airtel had invested $32 billion in FY24, generating a return of 8%. Over the next four years, while investments will drop to $28 billion per year, returns will likely more than double to 19%, Macquarie data showed.
Build your superstructure
As generative AI continues to evolve, the debate over its development and release models becomes important. Across the foundation models driving the explosion of GenAI are two broad philosophies for the development and release of this tech: open- and closed-source models.
India utilised 99.9% of its capex target in FY24
India has used Rs 9,48,506 crore in its capital expenditure in FY24, up from the revised estimate of Rs 9,49,555 crore. The government plans to narrow its fiscal deficit to 5.1% in FY25 from 5.8% in FY24. Private capex is expected to be an important driver of growth and job creation. India's GDP growth was 7.8% in Q4 of FY24, and the overall growth rate is now estimated to be 8.2%.
5G adoption on a roll in India, yet tariff upside may be minimal: India Ratings
India's 5G subscriber base is expected to rise to 20-25% within a year, but significant tariff hikes remain uncertain, says Ind-Ra. While telcos are better positioned for tariff increases, global trends show no major premium for 5G over 4G. Ind-Ra maintains a neutral sector outlook, noting investment peaks and potential market share shifts towards Reliance Jio and Bharti Airtel.
Salesforce plummets 18% as weak forecast sparks concerns of AI competition
Salesforce shares slumped about 18% on Thursday, after its lowest-ever quarterly revenue growth forecast raised fears that high interest rates and rival AI offerings were hampering demand at the cloud-based software firm.
Dow slides 1% as bond market pressure eases after cooler economic data
The S&P 500 traded 0.2% lower and the Nasdaq composite dropped 0.3%. Yields fell on Thursday after a couple of reports showed the U.S. economy isn’t quite as strong as expected. The hope on Wall Street is that the economy can cool down, but not too much so that the Federal Reserve can hit a precise landing where it gets high inflation under control without causing a bad recession.
KKR invests in Healthcare Revenue Solutions provider Infinx
KKR acquires a significant minority stake in Infinx Services, a leading healthcare revenue cycle solutions provider. With Norwest Venture Partners also participating, the investment aims to accelerate Infinx's growth in the US healthcare market, leveraging KKR's expertise. Infinx's innovative platform serves over 400 healthcare providers, tapping into a $4.3 trillion market.
Industrials lift European shares to record high ahead of US inflation data
Europe's benchmark index climbed to a record high on Wednesday, as upbeat earnings boosted industrials and healthcare stocks, while investors buckled up for a highly anticipated U.S. inflation print.
Your phone bill could rise by up to 25% post election
The report said while the quantum of hike may appear large, it should be manageable for both urban and rural users, especially as data usage is sticky. For urban households, subscribers' spending on telecom would go up to 3.6% of total expenditure from 3.2%, it said, while for rural subscribers spending would increase to 5.9% from 5.2%.
India needs Rs 4.2 lakh cr investment to connect 24 cr households with broadband by 2030
According to the break-up provided by Prashant Singhal, fibre deployment will need investments in the range of Rs 2.7-3 lakh crore, passive infrastructure Rs 90,000-96,000 crore, WiFi and in-building solutions Rs 6,600-Rs 9,000 crore, data centres Rs 9,700-Rs 14,100 crore and satellite broadband services Rs 26,000-29,000 crore.
Arm's annual revenue forecast fails to impress investors; shares tumble
For the current fiscal first quarter, Arm forecast revenue in a range between $875 million and $925 million, with a midpoint of $900 million, compared with an average analyst estimate of $857.5 million, according to LSEG data.
India's data center industry set to double capacity by 2026, attract investments
India's data center industry is poised for significant growth, with its capacity forecasted to double to 2,000 MW by 2026. This expansion is expected to attract investments totaling Rs 50,000 crore over the next three years. Despite India generating 20% of global data, its share of data center capacity is only 3%, indicating vast potential for growth. Adoption of technologies like 5G, IoT, and AI is expected to triple data consumption in India.
Telecom service sector's AGR up 1.8 pc to Rs 67,835 cr in Dec 2023 quarter: Trai data
The Adjusted Gross Revenue (AGR) of India's telecom service sector rose by 1.88% to Rs 67,835 crore in the December 2023 quarter, according to Trai's data. Year-on-year, the AGR increased by 7.84%. Access services accounted for 82% of the total AGR, with Bharti Airtel's AGR increasing by 3.2% to about Rs 20,480.6 crore, Reliance Jio's AGR climbing 2.7% to Rs 24,862.85 crore, and Vodafone Idea's AGR dipping 0.65% to about Rs 7,459 crore. Public Sector Undertakings' share in the Access AGR was 3.87% in the quarter.
IPL firms up Telcos’ data cover drive...Who’ll score more?
Telecom companies are likely to see 8-10% rise in data traffic consumption as cricket fans glue eyeballs to the Indian Premier League being streamed for free. Meanwhile, SMS/voice call activity may also record a 15-20% growth this April-June quarter as political parties take to the traditional telecom channels for election campaigning.
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