Idea Cellular cuts 2G data tariff by up to 90%

In a bid to promote mobile broadband penetration, Idea Cellular slashed 2Gdata tariffs by up to 90% across the country and3G tariffs by as much as 33% for six months starting November 15.

The reduced tariffs will be available to existing and new prepaid and postpaid users, the company said in a statement.

At the new rates, 3G data tariffs are now on par with 2G across all 10 Idea 3G circles. Users can access 2G and 3G data at 2 paise per 10 KB.

"Over 33 million existing and new data users on the Idea networks can now enjoy reduced data tariffs on their 2G and 3G prepaid and postpaid handsets and dongles. The offer will be effective from November 15, 2013, and be available for six months," it said.

Vodafone India had slashed data tariffs by up to 80% across the country. Bharti Airtel in June had reduced rates by up to 90% in Punjab and Haryana.

"Idea has reduced 2G data tariff by up to 90% across all 22 circles, enabling users to avail 2G data at 2 paise per 10 KB. Idea's 3G users will now be able to save up to 30% on their monthly data charges as the same tariff will also be available across all 10 Idea 3G circles," the company said.

Idea has 3G spectrum in Maharashtra and Goa, Madhya Pradesh and Chhattisgarh, Kerala, UP West and East, Andhra Pradesh, Gujarat, Haryana, Jammu and Kashmir and Himachal Pradesh.

The current tariffs for 2G are 2 paise per KB while for 3G, the rates are 3 paise per 10 KB.

"The reduction in data tariff is aimed at catalysing data adoption amongst the masses and empowering them with the power of mobile internet at an affordable cost," Idea Cellular deputy managing director Ambrish Jain said.

The revised tariffs will not only drive more data usage from existing Idea users but will also attract new users to Idea's growing subscriber portfolio, the company said.

More: http://timesofindia.indiatimes.com/tech/tech-news/telecom/Idea-Cellular-cuts-2G-data-tariff-by-up-to-90/articleshow/25639103.cms

Idea Cellular Q2 net profit surges, beats estimates

Idea Cellular Ltd(IDEA.NS), India's No.3 mobile carrier by revenue, reported a big jump in quarterly profits, underscoring a continued recovery in the sector, helped by fewer competitors and higher call prices.

Idea, part of the Aditya Birla conglomerate, said on Thursday net profit had surged 86 percent year-on-year in its second quarter ended September 30, ahead of analysts' estimates.

However, some key operating metrics such as average revenue per user and voice minutes sold, fell from the previous quarter in a period usually seen as weak for Indian telecoms as frequent power cuts in monsoon rains and network outage hurt traffic.

"With increasing proportion of rural subscribers, the seasonal slowdown in the second quarter has become more pronounced," Idea said in a statement, but added it saw its long-term business trends as "robust".

Bigger carriers such as the Bharti Airtel Ltd (BRTI.NS), Vodafone Group Plc's (VOD.L) local unit and Idea have seen profits improving as they have reduced discounts and raised some call prices in the past two quarters, taking advantage of a court order forcing several smaller players out of the market.

Idea, with its focus only on mobile phone services and the domestic market, is best placed to gain, analysts say. Regulatory uncertainty and legal disputes are the biggest headwinds for Idea and its peers.

India's mobile telecom sector is the world's second-biggest after China by number of customers, but carrier margins are lower than elsewhere and a vicious price war in the last three years has hit profits. Voice calls account for 85 percent of the sector's revenue as high-margin mobile data business is nascent.

Bharti Airtel is the country's No.1 mobile carrier by revenue, followed by Vodafone's unit.

Nine analysts have upgraded their ratings on Idea's stock in the last three months, the most number of upgrades among 90 global phone companies for which Thomson Reuters StarMine compiles data.

Idea, which is a fifth owned by Malaysia's Axiata (AXIA.KL), said net profit rose to 4.48 billion rupees for the three months to September 30, from 2.4 billion rupees a year earlier. Analysts' average forecast was 4.22 billion rupees.

Revenue rose 19 percent to 63.23 billion rupees for the company, which outpaced bigger rivals in customer sign-ups in the nine months to September.

Average revenue per user, a key metric for carriers, fell 5.7 percent rupees from the previous quarter to 164 rupees, although margin per minute improved to 0.447 rupees from 0.437 rupees.

Ahead of the earnings, Idea shares, valued at $9.4 billion, eased 0.2 percent, in line with the Nifty that was also down 0.2 percent. The results were reported after the market closed.

The stock is up nearly 69 percent this year, compared with a 10 percent gain in Bharti Airtel. Rival Reliance Communications' (RLCM.NS) share price has more than doubled.

More: http://in.reuters.com/article/2013/10/24/india-idea-earnings-idINDEE99N07S20131024