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AIRCEL- Key takeaways
Data opportunity would be the next big story in the Indian telecom sector as per the
company. 5MHz of 3G spectrum would be insufficient to address this data opportunity
and hence Aircel bid and won BWA spectrum in 8 circles for Rs 34 bn. Aircel has ~15.5%
of its revenues coming from non-voice services – the highest amongst the GSM players, in
the company’s opinion.
Aircel intends to launch 3G soon starting off with 36 cities across its 13 circles where it
has 3G spectrum. The company indicated that 3G would be priced as a premium service
initially (in line with peers who have already launched) and the pricing would evolve over
the next 6-12 months depending upon the competition and uptick in usage.
On the current spectrum pricing by TRAI, Aircel is of the view that pricing of spectrum is
fundamentally correct and it would create a level playing field for all operators. The
company believes a spectrum pricing benchmark, if extended to M&A situations, would
serve as a driver of consolidation in the industry, thereby benefitting the sector.
The company would continue to focus on its strong circles – South and Eastern parts of
India. This also reflected in the company’s bidding strategy in 3G/BWA auctions.
MNP response has been encouraging for Aircel as per the initial results.
The company sees little possibility of another major tariff war in the industry as there is
little incentive for any player in the industry to trigger that.
Aircel indicated 900 MHz spectrum as a major competitive advantage for any operator –
allows a company to operate at a lower capex base and also lowers relative opex.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
AIRCEL- Key takeaways
Data opportunity would be the next big story in the Indian telecom sector as per the
company. 5MHz of 3G spectrum would be insufficient to address this data opportunity
and hence Aircel bid and won BWA spectrum in 8 circles for Rs 34 bn. Aircel has ~15.5%
of its revenues coming from non-voice services – the highest amongst the GSM players, in
the company’s opinion.
Aircel intends to launch 3G soon starting off with 36 cities across its 13 circles where it
has 3G spectrum. The company indicated that 3G would be priced as a premium service
initially (in line with peers who have already launched) and the pricing would evolve over
the next 6-12 months depending upon the competition and uptick in usage.
On the current spectrum pricing by TRAI, Aircel is of the view that pricing of spectrum is
fundamentally correct and it would create a level playing field for all operators. The
company believes a spectrum pricing benchmark, if extended to M&A situations, would
serve as a driver of consolidation in the industry, thereby benefitting the sector.
The company would continue to focus on its strong circles – South and Eastern parts of
India. This also reflected in the company’s bidding strategy in 3G/BWA auctions.
MNP response has been encouraging for Aircel as per the initial results.
The company sees little possibility of another major tariff war in the industry as there is
little incentive for any player in the industry to trigger that.
Aircel indicated 900 MHz spectrum as a major competitive advantage for any operator –
allows a company to operate at a lower capex base and also lowers relative opex.
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