Category: Communications

India’s second-largest telecom operator, Bharti Airtel, is continuing to narrow the revenue market share (RMS) gap with sector leader Reliance Jio, analysts said after the firm’s third-quarter earnings.

“Over the last two quarters, Airtel has narrowed the wireless RMS gap versus Jio by almost 300 basis points (bps), driven by strong residual flow-through of the July 2024 tariff hikes and a 90% incremental margin in the India wireless business (versus 49% for Jio),” Motilal Oswal said.

Revenue Market Share (RMS) measures a telecom operator’s share of total industry revenue, reflecting its financial strength and market competitiveness. Unlike subscriber share, RMS shows how well a company monetises its user base.

Tariff Hike Helps Airtel
Motilal Oswal’s report noted that Bharti Airtel has benefited the most from recent price hikes in mobile plans, with its average revenue per user (ARPU) rising by Rs 35 over the last two quarters, compared to Rs 20 for Jio. In percentage terms, Reliance Jio’s ARPU increased by 11.9% year-over-year, while Bharti Airtel’s grew by 18%.

Bharti Airtel, following Jio’s lead, increased its tariffs on both prepaid and postpaid plans in July last year. The price hikes ranged from 10-21% across various plans. Airtel also revised its entry-level criteria for free unlimited 5G access.

Previously available on more affordable plans, 5G access was limited to plans offering 2GB of data per day or more, with customers needing to spend at least Rs 649 to benefit from unlimited 5G. This placed Airtel’s 5G entry point at twice the cost of Jio’s similar plans, which start at Rs 349, even after their price hike.

At the time, the company said that the move was aimed to ensure that its average revenue per user (ARPU) must exceed Rs 300 to support the significant investments needed for network technology and spectrum, while also providing a modest return on capital.

Airtel’s ARPU for the third quarter stood at Rs 245, compared to Rs 208 in Q3 FY24, and was also higher than its peer, Jio, which reported Rs 203 in Q3FY25.

Airtel Benefits from 4G Transition
ICICI Securities reported that between October and December 2024, Reliance Jio gained 3.3 million subscribers, while Sunil Mittal’s Bharti Airtel gained 4.9 million. Airtel also added 6.5 million 4G subscribers during the quarter.

“Bharti benefited from the 2G to 4G transition and a strong post-paid subscriber base, which grew by 13.1% year-over-year,” ICICI Securities noted. Adding that the sharp rise can be attributed to winning back customers lost in the previous quarter.

According to TRAI’s data, Airtel and Jio lost subscribers after hiking their tariff rates, while state-owned BSNL gained. In October, Airtel finally gained 1.9 million users, while Jio lost 3.8 million users. Meanwhile, BSNL added subscribers for the fourth consecutive month, taking its total user base to 92.4 million till October 2024. Vodafone Idea’s user base stood at 210.5 million, adding 1.98 million users in October.

The Motilal Oswal also noted that Airtel’s India wireless business is now generating similar profits (EBITDA) to Jio, even though Jio includes earnings from its home broadband service.

Airtel’s mobile revenue in Q3 FY25 increased by 21.4% year-over-year and 5.8% quarter-over-quarter. In comparison, Jio’s revenue grew by 3.4% quarter-over-quarter and 15.5% year-over-year during the same period.

Captial Expanding to Decline
Looking ahead, the brokerage expects Airtel’s revenue and profit to grow strongly due to continued price hikes, an expanding broadband business, and strong growth in Africa.

As Airtel reduces its capital spending, it is expected to generate Rs 1 lakh crore in free cash flow over FY25-26, which will help reduce debt and improve shareholder returns, said the Motilal Oswal report. Outlook Business

India should consider zero tariffs on semiconductor manufacturing if it wants to become a significant player in global supply chains, says John Neuffer, President and CEO of the US Semiconductor Industry Association.

In an exclusive chat with CNBC-TV18, Neuffer emphasised that while India is on the right trajectory in growing its chip-manufacturing footprint, it is important to have a lower tariff and more conducive trade policy. “US is already getting zero tariff treatment from chip supply chain partners around the world but not from India”, he said. He added that more investments in skilling people — not just in design but actual chip manufacturing — would pay off in the long run.

The US Semiconductor Industry Association represents 99% of American semiconductor companies and two-thirds of semiconductor companies worldwide. Neuffer said that India must take one bite of the apple at a time to show the world its intent to be a reliable long-term partner in semiconductor manufacturing at a time of intensifying competition in chip production in Southeast Asia.

The SIA has expressed concerns about the Trump administration’s plans to impose higher tariffs on Taiwan-manufactured semiconductors. Trump has proposed to impose 100% tariffs on semiconductor imports from Taiwan. Neuffer said such a policy, if implemented, would be problematic and cause huge disruption.

“[The] US is very dependent on global semi-conductor supply chains, and we need components as cheaply as possible. Tariffs raise costs for US semiconductor fabs and manufacturing,” he said. The United States continues to dominate global semiconductor manufacturing with a more than 50% market share.

The Trump administration is scrutinising contracts handed out by the Biden administration under the CHIPS Act, which Neuffer says has already resulted in commitments to the tune of half a trillion dollars in chip fabrication in the USA. “By 2032, US would have tripled its manufacturing of the world’s most advanced chips, or 30% of the world’s most advanced chips would be made by America by 2032,” he adds.

According to the SIA, the global semiconductor industry saw a robust 20% growth in 2024, and growth in 2025 is expected to be higher than 11%. CNBCTV18

The Karnataka government signed a Memorandum of Understanding with ASM Technologies Limited, a design-led manufacturing company in the semiconductor and automotive industries for an investment of Rs 510 crore in the state at ‘Invest Karnataka 2025’ on Wednesday. The city-based ASM Technologies will expand its Electronic System Design and Manufacturing (ESDM) capacity, according to a company press release.

As part of the agreement, ASM Technologies will acquire 10 acres of land from the Karnataka Industrial Areas Development Board (KIADB) to establish a state-of-the-art design facility, the release added.

“This expansion will enhance our precision engineering capabilities in the electronics, semiconductor and solar industries, create employment opportunities and drive technological advancements in the region,” said Rabindra Srikantan, managing director of ASM Technologies Limited.

The company also recently commenced operations at two new state-of-the-art manufacturing facilities in Dabaspet, Karnataka and Sriperumbudur, Tamil Nadu, the release stated. PTI

Balkan telecoms and media company United Group has agreed to sell its broadband provider Serbia Broadband to e& PPF Telecoms Group and other assets to Telekom Srbija in a deal with an enterprise value of 1.5 billion euros, United said on Wednesday.

e& PPF Telecom Group, a joint venture of UAE’s e& and Czech-based PPF, said it was buying Serbia Broadband (SBB) for 825 million euros ($854.95 million) cash-free and debt-free as the main part of the transaction.

United Group, which operates across South East Europe, said it was also selling its NetTV Plus business and its sports broadcasting rights for the Western Balkans to Telekom Srbija. It is keeping SBB’s media assets including the N1 and Nova S television channels, which will continue to be available on SBB’s network.

“Today’s divestments are in line with our strategy to sharpen our focus on the markets where we can provide the full spectrum of mobile and fixed telecommunication services to our customers, which will enable us to realize the greatest potential for growth and value creation,” United Group Chief Executive Victoriya Boklag said in a statement.

e& PPF Telecom Group said the deal adds 700,000 cable television and broadband internet customers to its base.

The acquisition is an outcome of e& and PPF’s interest in United Group assets announced by PPF chief Jiri Smejc in a Reuters interview in November.

“The acquisition aligns with e&’s strategic ambition to scale up e& international in Central Eastern Europe, diversify revenue sources with greater exposure to stable currencies, and

accelerate growth in e& PPF Telecom,” e& PPF Telecom said in a statement”

e& PPF Telecom said the deal would be entirely financed by external debt.

United said the deal was subject to regulatory approvals and was expected to be completed during the first half of 2025. Reuters

The European Union will provide 50 billion euros ($51.6 billion) of EU funds to bolster the bloc’s artificial intelligence ambitions, European Commission President Ursula von der Leyen said, as countries race to lead in the technology.

The EU funds will top up the European AI Champions initiative, spearheaded by venture capitalist General Catalyst, which has drawn pledges of 150 billion euros of private investment so far, from the likes of Airbus, ASML, Siemens, Infineon, Philips, Mistral and Volkswagen.

“Thereby we aim to mobilise a total of 200 billion euros for AI investments in Europe,” von der Leyen told the Paris AI Summit.

The EU funding is significantly less, however, than the up to $500 billion of U.S. private sector investment announced by President Donald Trump last month for AI infrastructure.

Von der Leyen said EU investments will focus on industrial and mission-critical technologies.

The EU executive said 20 billion of the 50 billion euros EU funding will finance the construction of four AI gigafactories across the 27-country bloc, adding to seven such factories announced last December. US News

As Starlink intensifies competitive pressures and African governments remain uncertain about intervening to protect telco incumbents, African telecom companies are increasingly focusing on underserved regions. In response, they are launching strategic initiatives to tackle the rising challenge of low Earth orbit (LEO) satellite connectivity to maintain their market position and tap into new growth opportunities, according to GlobalData, a leading data and analytics company.

Recent tie-ups – including the Orange–Vodacom deal in Uganda for network deployment in rural areas; Safaricom partnering with local satellite operator ESD Kenya; ZainTech partnership with Arabsat covering North Africa; and Vodacom and MTN’s own desire to boost connectivity across their footprint via LEOs – point to this trend.

Ismail Patel, Senior Analyst, Enterprise Technology and Services at GlobalData, says: “The rapid shift in focus by Africa’s telcos can largely be attributed to a confluence of factors, with Starlink being a key driver. These telcos are increasingly seeing unserved and underserved regions of the continent as opportunities rather than investment dead ends.”

GlobalData analysis uncovered the existence of not only regulatory divergence in how to deal with Starlink, but also variation in Starlink’s attitudes to compliance with licensing or lack thereof in the wider MEA region. In Africa, some governments require it to be licensed, thus adopting a protectionist approach. Some are more hesitant to do so, ostensibly due to the potential of Starlink connectivity stimulating the economy in rural and underserved regions.

Although its subscriber market share is small, Starlink is eating into the untapped revenue opportunities, with the potential of building up a loyal customer base. This represents a concern for the incumbents as Starlink builds up a base of higher-than-average revenue generating customers such as small office/home office (SOHOs) and small and medium-sized businesses (SMBs), on top of connecting underserved populations that include thousands of micro-businesses.

With Starlink promising to launch in 14 new markets across Africa in 2025, pressures on the traditional telco incumbents will only become starker and sharper, leading to more collaboration among themselves as well as with alternative LEOs.

Patel concludes: “Starlink has undeniably changed the competitive field for connectivity, resulting in telcos scrambling for a piece of the rural greenfield opportunity that was neglected for a considerable time. The global LEO is competitive on pricing and offer a quality connection that has not been the norm for many in Africa. But not all is lost for the continent’s telco groups, as they can typically offer the type of tech-based services to SMBs that a global LEO cannot, such as – inter alia – improved supply chain management, e-health, adverse weather mitigation, mobile payments, and natural resource management.” GlobalData

Vodafone Idea share price:Telecom operator Vodafone Idea shares plunged as much as 8.16 per cent to hit an intraday low of Rs 8.10 per share on Wednesday, February 12, 2025.

The fall in Vodafone Idea share price came after the company posted a mixed set of results in the December quarter of financial year 2025 (Q3FY25).

Vodafone Idea’s consolidated net losses narrowed marginally to Rs 6,609.3 crore in Q3FY25, from a loss of Rs 6,985.9 crore in Q3FY24.

Revenue from operations, meanwhile, rose 4.2 per cent year-on-year (YoY) to 11,117.3 crore in Q3FY25, from Rs 10,673.1 crore in Q3FY24.

At the operating front, earnings before interest, tax, depreciation, amortisation (Ebitda) rose 8.3 per cent YoY to Rs 4,712.4 crore in Q3FY25, from Rs 4,350.4 crore in Q3FY24.

Subsequently, Ebitda margin improved 160 basis points (bps) to 42.4 per cent in Q33FY25, from 40.8 per cent in Q3FY24.

The Capex spend for Q3FY25 was at Rs. 3,210 crore, taking the capex for the nine months to Rs 5,330 crore. The network rollout will accelerate further in Q4FY25 with the full year expected capex of ~Rs 10,000 crore.

Meanwhile, the debt from banks reduced by Rs 5,290 crore during the last one year and stood at Rs 2,330 crore (was at Rs 7,620 crore in Q3FY24).

“During the quarter, we expanded our footprint to more than 4,000 unique broadband towers, the largest addition in a quarter by the Company since merger,” Vodafone Idea said, in a statement.

However, Vodafone Idea’s total data subscribers took a hit as it dropped to 13.42 crore in Q3FY25, from 13.74 crore in Q3FY24. It also dropped sequentially from 13.49 crore in Q2FY25

The telecom company’s average revenue per user (ARPU) soared to Rs 163 in Q3FY25, as against Rs 145 in Q3FY24. The ARPU stood at Rs 156 in Q2FY25. Business Standard

A new study from Juniper Research, the foremost experts in the telecommunications market, has found that over 1.5 billion mobile subscribers will use carrier billing globally to buy either digital content, physical goods, or digital tickets, in 2025.

However, it warns operators that if they wish to capitalise on this sizeable user base, they must maximise the attractiveness and value of the carrier billing opportunity to merchants by positioning their networks as distribution channels, rather than as mere payment facilitators.

Carrier billing is a mobile payment method allowing users to make purchases by charging payments to their mobile phone bill.

Operators Need to Become Content Distribution Channels
A key market driver in carrier billing has been the adoption of a new API called ‘Check Out’ that emerged from the CAMARA project; an open-source framework that standardises APIs for telecoms networks.

Whilst this has been key to increasing subscriber access to carrier billing, the report warns that deploying this API alone will not be enough to capitalise on the huge global carrier billing opportunity – with spend forecast to grow from $83 billion in 2025 to over $130 billion by 2029, according to Juniper Research.

The report urges operators to transform their networks into distribution channels; enabling mobile subscribers to purchase digital subscriptions via an operator’s consumer-facing platform. Unlike established bundling, this strategy is underpinned by the integration of content management services; allowing operators to have a direct billing relationship with their subscribers for digital content. Operators must maximise these platforms through revenue share agreements with digital service providers to capitalise on the large user base. Juniper Research

India’s smartphone market grew 4% year-over-year (YoY), with shipments reaching 151 million, according to IDC.

India became the fourth largest market for Apple in 2024, after USA, China, and Japan, as shipments reached a record 12 million units in the country, with 35% YoY growth. In 4Q24, Apple entered the Top 5 brands in India for the first time with a 10% share. iPhone 15 and iPhone 13 were the highest shipped models, accounting for 6% of overall shipments during the quarter.

“The vendors and channel partners continued to provide price cuts, discounts, and extended device warranties in the post-festive period in 4Q24. While financing options were available across price segments, its impact was more pronounced in mid-range and premium devices throughout the year, with the ‘No Cost EMIs’ for up to 24 months being most popular,” said Upasana Joshi, senior research manager, Devices Research, IDC Asia Pacific.

Key Highlights for 2024:
While the ASPs (average selling price) reached a new high of US$259 in 2024, the 2% YoY growth was significantly lower than the double-digit growth seen the previous three years. The entry-premium (US$200<US$400) segment registered the highest growth of 35.3% YoY, with a 28% share, up from 21% a year ago. The premium segment (US$600<US$800) grew 34.9%, with its share up to 4% from 3%. Key models were the iPhone 15/13/14, and Galaxy S23/S24. Apple and Samsung’s share increased in this segment, led by the previous generation models.

120 million 5G smartphones were shipped in the year. The share of 5G smartphone shipments increased to 79%, up from 55% in 2023, while 5G smartphone ASPs declined by 19% YoY to US$303. Within 5G, shipments of the mass budget (US$100<US$200) segment almost doubled, reaching 47% share. Xiaomi Redmi 13C, Apple iPhone 15, vivo Y28, Apple iPhone 13, and vivo T3X were the most shipped 5G models in 2024.

Shipments to offline and online channels grew almost at par by 4% YoY, and shares remained similar at 51% and 49%, respectively, in 2024. Samsung continued to lead in the online channel, while Apple climbed to the fourth position, with iPhone 15 as the highest shipped smartphone online. Within the offline channel, vivo maintained its dominance, while OPPO and Xiaomi climbed to the second and third spots, respectively.

Overall, vivo surpassed Samsung for the leadership position in 2024, with its consistent omnichannel play, diversified portfolio across price segments and channel support. Nothing registered the highest growth overall, followed by Motorola and iQOO annually. The long tail of brands collectively gained ground in 2024, as the share of the top five vendors depleted from 76%, 68%, and 65% in 2022, 2023, and 2024 respectively.

54 million feature phones were shipped annually, declining by 11% YoY. Transsion continued to lead with a 30% share, followed by Nokia and Lava. Overall, 205 million mobile phones were shipped, registering a 1% annual drop.

“With a low single-digit growth in 2024, growth in 2025 hinges on a stronger performance in the mass segment (US$100<US$200) and more offerings in the entry-premium segment (US$200<US$400) for upgraders,” says Navkendar Singh, associate vice president, Devices Research, IDC India. “Generative AI features and use cases will start being key differentiators, moving beyond flagship models and becoming more prevalent across different price points. Online-focused long-tail brands will venture offline to sustain growth. However, the weakening rupee could impact ASPs, potentially restricting annual growth to below 5% in 2025.”

IDC

Brazil’s finance minister rejected on Monday a report saying the country was planning to impose taxes on U.S. tech companies if President Donald Trump proceeds with plans to introduce a 25% tariff on all U.S. steel imports.

“The information is not correct,” Fernando Haddad wrote on social media, after the newspaper Folha de S.Paulo reported that President Luiz Inacio Lula da Silva’s administration was mulling tariffs on big tech firms as retaliation.

The South American country is one of the largest sources of U.S. steel imports as well as a top market for many big tech companies.

Trump said on Sunday he would introduce on Monday new 25% tariffs on steel and aluminum imports, on top of existing metals duties, in another escalation of his trade policy shakeup.

“The Brazilian government has made the sensible decision to only make statements at the appropriate time and based on concrete decisions, not on announcements that could be misinterpreted or revised,” Haddad said.

According to the Folha report, which cited an unnamed Brazilian authority, a potential Brazilian levy could have affected Amazon, Meta Platforms’ Facebook and Instagram, and Alphabet-owned Google.

A finance ministry official in 2024 had already floated the idea of a potential tax on big tech companies to meet fiscal targets in case there was a government revenue shortfall this year. Reuters