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“MNP-related trade spends have come down, with telcos now paying around Rs 250-280 per port-in to retailers versus over Rs 300 some months back,” brokerage IIFL Securities<\/a> said in a report.
Likewise, commissions on new SIM activations had also dropped to as low as Rs 109-to-149 per mobile connection from Rs 179 a few months ago.
“Our recent rural survey indicated that the (telecom) industry has improved its discipline on channel commissions for subscriber acquisitions and MNP in the March quarter,” IIFL said in the note.
Bharti Airtel<\/a>, India’s second largest telco, has cut channel commissions in the past 45 days, which has already led to a 2.1% sequential dip in its SG&A (selling, general & administrative) expenses to Rs 2,474 crore in the March quarter, with the full impact likely in April-June. The telco had previously seen sharp jumps on this score in the past three quarters of FY23.
Market leader Reliance Jio<\/a>’s quarterly SG&A bill – otherwise less than 50% of Airtel<\/a>’s – rose around 6% sequentially in January-March to Rs 1,086 crore, but the growth was half the 12% level reported in the December quarter, FY23.
Competition Indicator
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Telcos’ SG&A spends, typically, rise during intense competition when they try holding on to customers or poach new ones from rivals.
Vodafone Idea<\/a> (Vi), which reports March quarter earnings on May 25, is also likely to report a dip in SG&A costs, say analysts.
Queries to Airtel, Jio and Vi remained unanswered until the publication of this report.
Experts say channel spends<\/a> are finally dropping as all operators are looking to cut wasteful SG&A costs to boost margins and grow revenue in FY24. They added that high SG&A expenses - an indicator of rising customer acquisition costs amid intense competition – is an unhealthy and wasteful practice as such customers typically churn out after about four months.
“At an industry level, SG&A costs are likely to fall in coming quarters amid telcos’ efforts to improve channel-related efficiencies in the overall sales & distribution function, and also drive faster adoption of cost-efficient digital channels for customer acquisitions,” Prashant Singhal, EY Global TMT emerging markets leader, told ET.
Another sector analyst at a leading brokerage said reduced channel payouts at an industry level suggested fierce competition may gradually be easing.
“We are building in a tariff increase mid-CY23; without any tariff hike in the next 3-to-4 months, we estimate wireless revenue growth for Bharti\/Jio will further decelerate to single-digits on-year, while near-term capex is likely to remain high,” Goldman Sachs said in a note.
But others say tariff hikes are likely to be delayed until after next year’s general elections.
Tariff Increases
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EY’s Singhal said tariffs would have to rise in the next four-to-six months as India’s top two telcos (read: Jio\/Airtel) would need to recover their significant 5G-related capital investments toward networks\/spectrum costs since the current 8.5% return on capital employed (RoCE) is way too low and not sustainable.
Some analysts estimate the next round of tariff hikes could be in the 20% range.
The telecom industry<\/a> last undertook a tariff hike of 20-25% in November 2021. Earlier this year, Airtel had hiked base prepaid rates nationally, but its beneficial impact on average revenue per user (ARPU) has been limited.
Sanford C. Bernstein recently said India has one of the lowest 4G data rates in the world ($0.15\/GB) despite having the world’s highest per capita mobile data consumption (10 GB\/month). India’s mobile spend, it added, is also the lowest compared with other APAC markets as a percentage of GDP, having halved from 1.6% in FY10 to 0.7% in FY20.
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电信公司的削减渠道花费提高利润率
“MNP-related贸易花下来,现在电信公司支付大概250 - 280卢比/港口到零售商和Rs 300几个月回来,“经纪IIFL证券在一份报告中称。
读到
“MNP-related贸易花下来,现在电信公司支付大概250 - 280卢比/港口到零售商和Rs 300几个月回来,”经纪公司IIFL证券在一份报告中称。
同样,佣金新的SIM卡激活也降至Rs 109 - 149每移动连接从Rs 179几个月前。
“我们最近的调查表明,农村(电信)行业改善了其学科频道用户收购委员会和MNP, 3季度“IIFL在报告中称。
Bharti Airtel印度第二大电信,减少渠道佣金在过去的45天,已经连续下降了2.1%的销售(销售、一般和管理费用)在第一季度2474卢比,全面影响可能在4 - 6月。电信曾看到大幅跳跃在这一点上FY23过去三个季度。
市场的领导者依赖Jio的季度销售法案——否则的不到50%附近的旅馆' s -上涨6%左右顺序1 - 1086卢比,但增长12%的一半水平在截至去年12月的季度报告,FY23。
竞争指标
电信公司的销售和管理费用中的花,通常情况下,在激烈的竞争的时候持有客户或竞争对手挖走新的。
沃达丰的想法(Vi),该公司5月25日,3月季度收益报告也可能报告的销售和管理费用下降,分析师说。
查询Airtel Jio Vi仍悬而未决,直到出版这份报告。
专家说频道花终于把所有运营商正在寻求削减浪费的销售和成本来提高利润和成长在FY24收入。他们补充说,高额的支出——客户获取成本上升的指标在激烈竞争——是一种不健康的和浪费的实践这样的客户通常大约四个月后生产。
”在一个行业水平,销售和成本可能会在未来几个季度下降在电信公司的努力改善channel-related效率在整个销售和分布函数,并开快点采用的数字渠道客户收购,”新兴市场是全球TMT领袖Prashant Singhal告诉等。
另一个主要券商行业分析师说减少通道支付行业层面上说,激烈的竞争可能逐渐得到缓解。
“我们正在建设一个关税增加mid-CY23;没有任何关税上涨在未来3到4个月,我们估计无线收入增长Bharti / Jio将进一步减速到单位数同比,虽然短期资本支出可能会居高不下,”高盛(Goldman Sachs)在一份报告中说。
但其他人说关税上涨可能会被推迟到明年大选之后。
提高关税
EY Singhal说关税会上升在未来4 - 6个月在印度两大电信公司(阅读:Jio / Airtel)需要恢复他们重要的5 g相关资本投资向网络/频谱成本自目前的8.5%已动用资本回报率(RoCE)过低和不可持续的。
一些分析师估计,下一轮的税率可能会在20%左右。
的电信行业去年进行了一次关税上调2021年11月20 - 25%。今年早些时候,Airtel徒步基地预付率在全国范围内,但它的有利影响每用户平均收入(ARPU)是有限的。
Sanford c . Bernstein在最近表示,印度有一个世界上最低的4 g数据率(0.15美元/ GB)尽管拥有世界上最高的人均消费(10 GB /月)移动数据。它补充道,印度移动花与其他亚太地区相比也最低的市场占GDP的比例,从1.6%减半FY20未来10到0.7%。
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