IPL strengthens the data cover drive of telcos… Who will score higher?

Telecom analysts anticipate an 8-10% surge in data traffic among telecom companies, fueled by cricket enthusiasts engrossed in the Indian Premier League (IPL) streams, provided free of charge. Moreover, the upcoming April-June quarter is poised to witness a 15-20% uptick in SMS and voice call activity, attributed to political parties leveraging traditional telecom channels for election campaigning.

The projected data consumption per subscriber per month, previously at 21GB in December 2023, is expected to escalate to 25-27GB during April-June, factoring in continued growth from previous months, as suggested by analysts.

In terms of revenue conversion, Bharti Airtel, India’s second-largest telco, is anticipated to outperform competitors Reliance Jio and Vodafone Idea, securing a 2-3% growth margin.

Analyzing last year’s IPL season, Rohan Dhamija, head of India and the Middle East at Analysys Mason, noted Airtel’s significant increase in average revenue per user (ARPU), despite Jio leading in data consumption. This disparity is attributed to data consumption remaining within the confines of the daily allowances offered in most telecom packs.

Focus on Lower Value Data Packs

Presently, most prepaid packs provide a daily allowance ranging from 1.5GB to 2GB, adequate for streaming cricket matches on mobile devices. Statistics reveal that JioCinema, the exclusive IPL streaming platform, amassed 59 crore video views on IPL 2024’s opening day, totaling 660 crore minutes of watch time.

Analysts assert that Airtel holds a strategic advantage in both consumer wireless and business segments, poised to capitalize on the surge in SMS/voice call usage for elections and IPL streaming.

Consumer and Enterprise Outlook

For consumers, Airtel is expected to register a 3-4% increase in ARPU by targeting lower value data-only packs priced at Rs 39 and Rs 79. Last year’s data from Kotak Institutional Equities indicated Airtel’s successful monetization during IPL, with a notable ARPU increase of 3.3%.

On the enterprise front, Airtel emerges as the leading CPaaS (communication-as-a-service) player among telcos, set to benefit from the anticipated increase in enterprise messaging volumes during election campaigns, estimated at 15-20%.

Airtel’s dedicated CPaaS offering facilitates direct connectivity with enterprise customers without the need for an aggregator or telemarketer. The Airtel IQ Reach platform enhances campaign management across multiple channels, offering customized messaging and real-time reporting.

During peak events like elections, India’s enterprise SMS volumes may surge to 1.7 billion per day from the usual 1.3-1.5 billion per day. Telecom channels are deemed convenient and cost-effective mediums for political advertising and official communications during elections.

In summary, the April-June quarter is expected to witness a significant surge in data traffic and revenue for telecom companies, driven by IPL streaming and election campaigning activities. Airtel, with its strategic positioning and offerings, is poised to capitalize on these trends both in the consumer and enterprise sectors.