Kenyan operators outsource services to cut employee cost
www.WirelessFederation.com/news: The customer service and Network management operations of the telecom operators in Kenya are being outsourced in order to remain competitive in the long run. Following the footsteps of Telkom Kenya and Zain, Essar Telecom Kenya, operating under the Yu brand, announced an outsourcing agreement with Aegis.
In an effort to keep its employee costs low, the customer care services and Network management of Zain Kenya has been outsourced to Nokia Siemens while Telkom Kenya has outsourced its customer care operations to local BPOs Horizon and Kencall.
According to analysts, the initial focus for the firms was to grow their top lines, but now the executives are looking both at the top line and costs while the falling ARPU will put downward pressure on earnings growth. Incidentally, due to increased competition, ARPUs (average revenue per user) have declined significantly in recent years and it has resulted in reduction in mobile tariffs across the board.
China Unicom suffers 73% drop in 2009 profit
www.WirelessFederation.com/news: As a result of increased spending on 3G network and a lack of a one-time gain, 73% drop in full-year profit has been reported by China Unicom. More expenditure was made by the company to win subscribers to its CDMA2000 1xEV-DO network amid rising competition from China Mobile and China Telecom.
According to Unicom chairman Chang Xiaobing, company would raise handset subsidies in 2010 to enable Unicom to attract higher-end customers who could lift revenue from non-voice services such as music and video downloads. Addition of 10 million 3G users is targeted by China Unicom by the end of this year.
2.4% fall in the average revenue per user (ARPU) from RMB77 to RMB 41.2 a month in 2009 has been suffered by the firm. Unicom started giving 3G services nationwide in October, added 14.2 million customers in 2009, including 2.7 million 3G users. The lower income from fixed line operations could not be countered by higher wireless revenue and as a result, Unicom’s sales in the year ended December 31, 2009 fell 3.7% to RMB153.95 billion.
7.2% jump in the sales and marketing costs to RMB21 billion and 16% rise in network expenses to RMB21.8 billion has also been reported by the company.
Etisalat concerned by low Pakistani ARPUs
www.WirelessFederation.com/news: Lowest average revenue per user has been delivered by Etisalat’s Pakistani subsidiary when compared to its other overseas operations. Etisalat generates ARPUs of $49 in its home market while Pakistan Telecom Company’s (PTCL’s) ARPUs have fallen to just US$3.
According to Etisalat chairman Mohammad Omran, the telco is increasing its focus on its international operations where its subsidiaries contribute 10% of revenues but the company aims to increase this to 20% by 2013.
Etisalat’s acquisition of 26% stake in PTCL for $2.6 billion in 2005, which was completed after facing a stiff competition from China Mobile, SingTel and others, failed to live up to Etisalat’s expectation.
O2′s UK iPhone customers doubled to 2m
www.WirelessFederation.com/news: Due to its exclusive deal with Apple, the iPhone customers of Telefonica SA’s U.K. business O2 has doubled to 2 million customers over the past year.
The deal also increased sales, customers and average revenue per user, and catapulted the operator ahead of rival Vodafone Group PLC into first place.
The iPhone is O2′s best-selling device, and sales have shown no signs of dipping since the two year exclusive iPhone deal expired in September.
Norwegian firm Telenor enters India with 29p per minute plan
www.WirelessFederation.com/news: Moving one step ahead of the pay per second system, Norway-based firm Telenor, entered Indian market with 29 paise per minute plan under the brand name Uninor. The company has tied up with India’s Unitech Group and will be launched in seven circles — UP (East), Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, UP (West) and Bihar.
According to the CEO and President of Telenor group, Jon Fredrik Baksaas, the new plan offers more value for money to the users as the consumers want something more than the usual features. The pay per second billing was first launched by TATA DoCoMo, followed by other operators.
According to Unitech Wireless Managing Director Stein-Erik Vellan, the company’s target is to occupy 8% of the market share by 2018 and operate cash-flow break-even in five years.
Besides, the company also expects that the average revenue per user (ARPU) becomes lower than the industry level in the near term. However, Unitech is susceptible about bidding in the 3G auction but at the same time it has made it clear that it will surely not bid for an all India license.
Bharti takes a $2 bn call
MUMBAI: Bharti Tele-Ventures Ltd, the country’s largest cellular service provider, plans to invest up to $2 billion in its mobile and non-mobile businesses in the country during the current financial year.
In a bid to expand coverage in the rural areas and provide seamless and congestion-free service in the urban areas, it will add 20,000 cell sites during the year, thereby doubling the number of its cell sites.
Sanjay Kapoor, joint president-mobility, Bharti Airtel, told DNA Money, “For the year 2007, the capex for Bharti Airtel will be in the range of $1.8-2 billion across
India, out of which 70% will be on the Airtel mobile business and the remaining on the Airtel non-mobile business.”
Analysts feel that at 10% mobile teledensity, the telecom industry is bound to witness strong subscriber addition for the next few years.
Given its wide geographical coverage and aggressive marketing, Bharti Airtel could be well-placed to tap this growth.
For the first quarter, the Rs 11,290-crore company reported a 13% quarter-on-quarter growth to Rs 3,856 crore, largely driven by the mobility segment that witnessed a growth of 17.7% on account of strong subscriber addition, lower than anticipated fall in average revenue per user and a significant 2% increase in minutes of usage.
Airtel recently launched the InnoWest scheme for its subscribers in Mumbai,
Gujarat, Rajasthan, MP, Chattisgarh and
Maharashtra and
Goa under which a subscriber visiting these circles would be charged tariffs as applicable in his home circle and no separate roaming rates would be charged.
Source- http://www.dnaindia.com
Technorati : Bharti Airtel, India, Mobile
Ice Rocket : Bharti Airtel, India, Mobile
