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KOLKATA: India’s biggest incumbent carriers – Bharti Airtel<\/a>, Vodafone India and Idea Cellular<\/a> --will continue to engage in a fierce price war with Reliance Jio<\/a> Infocomm even at the risk of severely dented bottom-lines in FY18 simply to hold on to their market leadership, analysts at Crisil<\/a> Research said.\n
“At least, two out of the top three telcos will bleed in FY18, but competition will only heat up further as market leadership is always worth bleeding for,” Ajay Srinivasan, Crisil<\/a> Research director tracking the telecom sector<\/a>, told ET.
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\nHe declined to name the telcos on confidentiality grounds. Global research, he said, suggests that a market leader not only commands superior profitability and returns but also enjoys pricing power, a higher share of sticky postpaid customers and lower churn.
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\nSmall wonder, Srinivisan expects the price war in India’s Rs 1.5 lakh crore wireless telecom market to continue this fiscal (FY18), leaving bruised bottom lines in its wake.
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“The profitability picture appears grim with aggregate Ebitda margins of the telecom industry<\/a> (excluding Jio) expected to drop further by 50-to-100 basis points (bps) in fiscal 2017-18, which will be over and above the 600 bps drop to 29% estimated for FY17,” said Srinivasan.
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\nAccording to Crisil, while the overall data traffic has grown five times in the past one year, a 60% fall in 4G data prices since Jio’s launch last September resulted in muted 2% growth in adjusted gross revenue (AGR) for the telecom industry<\/a> in FY17.
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\nGoing forward, the rating agency expects top incumbents to report AGR growth “varying between 0-5% in the current fiscal, given the aggression being shown by them to protect their subscribers”.
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Last month, Airtel<\/a> had countered Jio’s Rs 303 per month Prime offer with a Rs 345 per month plan for prepaid users that dished out an identical 28 GB of 4G data over a month (with a 1 GB daily usage cap) and unlimited voice calls to all networks. Idea unveiled a Rs 348 plan offering 14 GB of data over 28 days with unlimited voice calls.
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\nBut Crisil’s Srinivasan said that the financials and business dynamics of leading global telcos in key high-data consuming markets also confirm “the premium attached to market leadership”.
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\nFor instance, Verizon, the largest US wireless carrier, he said, “enjoys higher profitability and returns than its peers as it boasts a sustained high market share, and its strong cash flows have enabled it invest in network quality, which, in turn, has ensured the lowest postpaid churn (under 1%) for the company”.
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Other leading global carriers such as “Indonesia’s Telkomsel, South Korea’s SK Telekom and Australia’s Telstra<\/a>, he said, are similar cases in point”.
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\nAccording to Crisil Research, returns of Indian telcos also indicate a similar trend. For instance, “the profitability of Bharti’s India operations is better than its peers, and its average returns is closer to 10% compared with 6-to-8% for the next two players,” said Srinivasan.\n\n<\/body>","next_sibling":[{"msid":58309109,"title":"Handset players now making apps for feature phones","entity_type":"ARTICLE","link":"\/news\/handset-players-now-making-apps-for-feature-phones\/58309109","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":58309187,"entity_type":"ARTICLE","title":"Telcos will further slash tariffs this year to keep their market share, predicts Crisil Research","synopsis":"At least, two out of the top three telcos will bleed in FY18, but competition will only heat up further as market leadership is always worth bleeding for, Ajay Srinivasan of Crisil said.","titleseo":"telecomnews\/telcos-will-further-slash-tariffs-this-year-to-keep-their-market-share-predicts-crisil-research","status":"ACTIVE","authors":[{"author_name":"Kalyan Parbat","author_link":"\/author\/4437\/kalyan-parbat","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/4437.cms?width=100&height=100&hostid=268","author_additional":{"thumbsize":true,"msid":4437,"author_name":"Kalyan Parbat","author_seo_name":"kalyan-parbat","designation":"Assistant Telecom Editor at the Level of Senior Assistant Editor","agency":false}}],"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2017-04-22 08:43:22","lastupd":"2017-04-22 08:45:16","breadcrumbTags":["indian telecom sector","mobile tariffs","Crisil","Airtel","industry","Bharti Airtel","telecom sector","Idea Cellular","Telstra","Reliance Jio","ajay srinivasan crisil research"],"secinfo":{"seolocation":"telecomnews\/telcos-will-further-slash-tariffs-this-year-to-keep-their-market-share-predicts-crisil-research"}}" data-authors="[" kalyan parbat"]" data-category-name="" data-category_id="" data-date="2017-04-22" data-index="article_1">
电信公司将进一步削减关税今年保持市场份额,Crisil的预测研究
至少两个的三大电信运营商将在FY18流血,但竞争只会进一步加热市场领导总是值得流血,Ajay Srinivasan Crisil的说。
加尔各答:现任印度最大的航空公司——Bharti Airtel,沃达丰印度和知道细胞——将继续进行激烈的价格战依赖JioInfocomm即使在严重受损的风险底线在FY18只是为了保住自己的市场领导,分析师Crisil的研究说。“至少两个的三大电信运营商将在FY18流血,但竞争只会进一步加热市场领导总是值得流血,“Ajay SrinivasanCrisil的研究主管跟踪电信部门告诉等。
他拒绝以保密为由电信公司的名字。全球研究,他说,表明市场的领导者不仅命令优越的利润和回报还享有定价权,更高份额的粘性的邮资已付的客户和较低的生产。
不足为奇,Srinivisan预计印度1.5十万的卢比的价格战无线电信市场继续这个财政(FY18),留下淤青的底线。
“盈利能力状况严峻与聚合的Ebitda利润率电信行业(不含Jio)将进一步下跌50 - 100个基点(bps)在2017财年- 18日将超过600个基点降至29%为FY17估计,”斯里尼瓦桑说。
Crisil的根据,而整体数据流量增长五倍在过去的一年,4 g数据价格下跌60%以来Jio去年9月发射了温和增长2%调整为电信总收入(AGR)行业在FY17。
展望未来,评级机构预计最高当权者报告AGR增长“0 - 5%之间变化在当前财政,鉴于侵略被他们保护他们的用户”所示。
上个月,附近的旅馆有反击Jio每月的Rs 303 '提供Rs 345为预付费用户每月计划,送出一个相同的28个GB的4 g数据超过一个月(1 GB日常使用帽)和无限的网络语音通话。想法Rs 348年公布了一项计划提供14 GB的数据超过28天,无限的语音通话。
但Crisil的Srinivasan表示,全球领先的金融和商业动态关键高数据消费市场的电信公司也确认“溢价市场领导”。
例如,Verizon公司,美国最大的无线运营商,他说,“享受比同行更高的利润和回报,因为它拥有一个持续高企的市场份额,和强劲的现金流使其投资网络质量,这反过来,已确保最低的邮资已付的生产(1%以下)公司”。
等全球领先的航空公司“印尼Telkomsel,因韩国SK电信和澳大利亚的澳洲电信他说,在点”也发生过类似的情况。
Crisil的调查显示,印度电信公司的回报也显示类似的趋势。例如,“Bharti的印度业务的盈利能力比同行,和它的平均回报率接近10%,6 - 8%在接下来的两名球员,“Srinivasan说。
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