iWorld

Aug-16: ACT largest private wireline broadband player in South India?

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/11/30/ACT-800x800.jpg?itok=__BpOl-s

BENGALURU: The wireline broadband internet (broadband) subscriber base in the country grew by 7.03 percent (by 11.6 lakh or 1.6 million) in the period between 31 December 2015 (Dec-15) or 1 January 2016 until 31 August 2016 (Aug-16), from 165.1 lakh to 176.7 lakh. In calendar year 2015, the growth rate had been higher at 7.77 percent. Telecom subscription data released by Telecom Regulatory Authority of India (TRAI) for Aug-16 reveals that the top five players’ growth was just 4 lakh new subscribers or 2.84 percent growth in the current calendar year until Aug-16 (CY-16).

Leading the growth were private wired broadband players Bharti Airtel (Airtel) and regional player Atria Convergence Technologies Pvt Ltd (ACT) with additions of 2.4 lakh and 2.3 lakh subscriber additions respectively in CY-16 until Aug-16.Airtel’s wired broadband subscriber base grew 14.37 percent, while ACT’s base grew by 26.74 percent during the same period (CY-16 until Aug-16). In CY-15 (1 January 2015 to 31 December 2015), Airtel had added 2.6 lakh wired broadband subscribers and grown by 18.44 percent, while ACT added 2.5 lakh subscribers and had grown at a blazing 40.98 percent. Hence, by the end of 2016, the two players should add a lot more subscribers than they did in CY-15.

While Airtel is a national level player, ACT is a regional player with operations in South India, hence probably making ACT the largest private wireline broadband player in South India. ACT has replaced the public sector Mahanagar Telecom Nigam Limited (MTNL) at third place, pushing the latter to fourth spot in Aug-16 in terms of number of subscribers.

Another private player among the top five – You Broadband (You BB) has added 60,000 subscribers (11.76 percent growth) in the current year until Aug-16. The two public sector players have lost subscribers during the same period and hence dampened the subscriber growth rate among the top five wired broadband internet players.

Among the 5 top wireline broadband internet players in India, the public sector telecom player Bharat Sanchar Nigam Limited (BSNL) leads by far with 98.4 lakh total number of wireline broadband subscribers as on Aug-16. However, BSNL has seen its broadband subscriber base shrink by 80,000 in CY-16 until Aug-16. The largest private sector wireline broadband internet services player Airtel had 19.1 lakh subscribers as on 31 August 2016, ACT with 10.9 lakh subscribers was next and was followed by another public sector player – Mahanagar Telephone Nigam Limited (MTNL) with 10.7 lakh subscribers. You Broadband (You BB) with 5.6 lakh subscribers was the fifth. MTNL has also seen a reduction of 50,000 subscribers in CY-16. Please refer to Fig 1 below for wireline subscriber data in CY-16 until Aug-16.

As mentioned above, the top five players have had a slower rate of growth as compared to the all India growth in CY-16 until Aug-16. The share of the top five players among all India wired broadband subscriber addition has fallen in CY-16 from 85.28 percent as on 1 January 2016 to 81.95 percent as on 31 August 2016. The share of these players was 88.45 percent as on 1 January 2015.

public://Untitled-2_4.jpg

Among these 5, only BSNL and Airtel could be termed as national players at present. BSNL, Airtel and MTNL also provide wireline telephony voice and data and mobile services while Airtel also has a direct to home (DTH) segment. ACT started off as an MSO with operations concentrated in a few major cities and towns located mainly in South India. It started internet services (ACT Broadband) a little later and has grown its broadband internet subscriber base over time through organic as well as acquisition growth, to the extent that it is quite likely the biggest private wireline broadband player in South India. You BB offers broadband operations in a few cities in Maharashtra, Gujarat, the NCR region Andhra Pradesh and Karnataka.

Month-on-month (m-o-m), the all India wired broadband subscriber base witnessed the second highest growth in CY-16 until Aug-16 at 1.03 percent. The top 5 players had a growth of 0.28 percent during the same period. Please refer to figure 2 below.

public://Untitled-2_5.jpg

Other wireline broadband players in India

MSOs’ in India have started providing internet services on the back of their television cable networks using DOCSIS technology. In general, they have started reporting double and triple digit year-over-year (y-o-y) increase in internet subscribers and revenue. The television cable players see broadband services improving their Average Revenue per User (ARPU) numbers. Three of the major MSOs and a regional MSO - Hathway, Siti Networks Limited, Den Networks Limited , Ortel CommunicationsLimited respectively whose results are available in the public domain have been showing steady growth in their broadband segment over the past few quarters.

Among the MSOs’ (besides ACT), Hathway has shown the highest subscriber additions in the year. Its consolidated broadband subscription revenue as per IND AS for the quarter ended 31 September 2016 (Q2-17) at Rs 120.3 crore (37.5 percent of Total Income from Operations or TIO) was higher than its consolidated CATV subscription revenue of Rs110.4 crore (34.4 percent of TIO). Its consolidated broadband revenue in Q2-17 quarter as per IND AS increased 67 percent y-o-y.

Hathway’sconsolidated broadband subscriber base increased to 8 lakh in Q2-17 from 7 lakh in the immediate trailing quarter (Q1-17). Broadband ARPU in the current quarter increased to Rs 643 from Rs 616 in the corresponding quarter of the previous year, but declined from Rs 670 in the immediate trailing quarter.

Siti Networks broadband revenue increased 167.7 percent y-o-y (more than doubled) to Rs 24.9 crore (8.6 percent of TIO) in Q2-17 from Rs 9.3 crore (4 percent of TIO) in Q2-16.Siti has added about 28,000 subscribers in Q2-17 taking its subscriber base to 195,000 from 167,000 subscribers in Q1-17. It had a broadband subscriber base of 91,450 in Q2-16.

Overall broadband subscriber numbers for August 2016 including wireless and mobile

Overall, as per the reports received by TRAI from the service providers, the number ofbroadband subscribers (including wireless, mobile, dongles) grew 4.75million  or 47.5 lakh to 17.171 million (17.171 crore) in Aug-16 from 166.96 million (16.696 crore) inJul-16. Wireless broadband subscriber numbers that use mobiles and dongles for internet access have increased m-o-m by 3.01 percent in Aug-16 to 153.45 million (15.345 crore) from 148.93 million (14.893 crore) in Jul-16. Fixed wireless subscribers that access the internet through Wi-Fi, Wi-Max, Point-to-point radio and VSAT have increased 8.65 percent in Aug-16 to to0.59 million (5.4 lkh) from 0.54 million in Jul-16.

The top five service providers constituted 85.16 percent (84.83 percent in Jul-16)market share of the totalbroadband subscribers at the end of Aug-16. These service providerswere Bharti Airtel (45.35 million or 4.535 crore), Vodafone (35.01 million or 3.501 crore), Idea Cellular(29.58 million 2.958 crore), BSNL (21.04 million 2.104 crore) and Reliance Communications Group (15.24 million 1.524 crore).

Decline in telephone subscribers in August 2016

It must however be noted that the total wireless subscriber basedeclined from 1,034.23 million (103.423 crore) at the endof Jul-16 to 1,028.88 million (102.888 crore) at the end ofAug-16, thereby registering a monthlydecline rate of 0.52 percent. Wireless subscription in urban areas declinedfrom 589.61 million (58.961 crore) at the end of Jul-16to 585.89 million (58.589 crore) at the end of Aug-16,and wireless subscription in rural areasdeclined from 444.63 million  (44.463 crore) to 442.99million (44.299 crore) during the same period. Themonthly decline rates of urban and ruralwireless subscription were 0.63 percent and0.37 percent respectively.

The overall wireless tele-density in Indiadeclined from 81.11 at the end of Jul-16to 80.62 at the end of Aug-16. The urban wireless tele-density declinedfrom 148.00 at the end of Jul-16 to146.84 at the end of Aug-16, and rural wireless tele-density also declined from 50.72 to 50.50 during the same period.The share of urban and rural wirelesssubscribers in total number of wirelesssubscribers was 56.94 percent and 43.06 percent respectively at the end of Aug-16.

TRAI’s definition of broadband is internet download speeds greater than or equal to 512 Kpbs.

Notes:(1) The unit of currency in this report is the Indian rupee - Rs (also conventionally represented by INR).The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

(2) TRAI reports indicate data in millions of numbers up to 2 decimal places. Hence it is assumed in this report that a figure of 0.51 million (5.1 lakh) subscribers for You BB for Dec-2015 would be granular to the nearest 10,000. While percentages have been mentioned up to two decimal places, the accuracy may vary, depending upon the exact number.

(3) MSOs’ have a number of subsidiaries and alliances, hence broadband numbers are split as applicable. The consolidated subscription numbers of these entities could be larger. Hathway is a case in point.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/13/semi.jpg?itok=sqE324qM
Semi-urban connect helps FilterCopy attain top slot on Facebook

MUMBAI: It’s time to pour a nice cup of filter coffee because it’s no small feat to beat a giant like Buzzfeed. According to a report by Vidooly, FilterCopy page ranked top on Facebook with more than 71 million (71,128,760) views in new age entertainment category with 27.4 million (2,743,641)...

iWorld Social Media
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/12/Mukesh-Ambani.jpg?itok=LOJOesz0
RIL to plan IPO for Reliance Jio: Bloomberg

Reliance Industries Ltd (RIL) may launch the initial public offering (IPO) for Reliance Jio by late 2018 or early 2019 to further challenge the collective might of Airtel and the Idea-Vodafone combine, according to a Bloomberg report. Reliance Jio, which hasn’t made a profit since its official...

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/12/yuutube.jpg?itok=rbwv91hH
Health & beauty YouTube's fastest growing vertical in 2017 for India

YouTube remains the top video entertainment hub – with over 225 million Indian smartphone users, using the app every month. India also reached not one, but two major YouTube milestone this year, with 200 channels now crossing the one million subscriber mark and three channels achieving 10 million...

iWorld Video On Demand
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/12/Manav_Sethi_0.jpg?itok=KqWggyLS
Regional content on ALTBalaji to constitute 15% of show hours

MUMBAI: The year 2017 has witnessed the phenomenal growth of regional languages, such as Tamil, Telugu, Malayalam, Gujarati, Marathi and Bengali, over Hindi and English. OTT players like ALTBalaji, Viu, Amazon, SonyLIV, Voot, Hotstar, Netflix, and YuppTV have taken a deep dive into offering...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/11/manav.jpg?itok=RDQizBci
Mastiii and PEN tie-up for win-win deal

Mastiii is all set to make a mark in the mobile app industry. The channel will soon expand its digital footprint via an exclusive content association with PEN India and will be available on its latest, Bollywood Times Mobile App, a one-stop destination for entertainment needs starting 9 December...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/11/eros.jpg?itok=0TSKcW1T
Focus shifts to online streaming for Eros

Mumbai: Production and distribution company Eros International no longer wants to be a film studio but a digital content company.

iWorld Video On Demand
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/09/apple.jpg?itok=amHakryx
Apple to acquire Shazam

Apple is making another big move this year. The Cupertino-based company is acquiring Shazam to bolster its music services. According to TechCrunch, Apple is all set to buy the popular music-recognition app in a nine-figure deal that could be valued around $401 million.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/09/kalari-kids.jpg?itok=USGGmcEz
Green Gold, Amazon Prime put Kerala martial art on the map

MUMBAI: Green Gold Animation is rediscovering Kalaripayattu, a lost martial art form of Kerala. With the purpose to educate through entertainment, the animation studio is making an exclusive series for Amazon Prime titled Kalari Kids. The series will be launched around Christmas with 20 episodes...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/08/vb.jpg?itok=sbWXsKb-
Vikram Bhatt to launch OTT platform on 27th Jan

MUMBAI: Finally, the launch date for director-producer Vikram Bhatt’s over-the-top (OTT) service is out. One of the latest entrants in the digital entertainment space, the OTT platform, titled VB on the Web, will begin services on 27 January 2018.

iWorld Over The Top Services

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories