Competitive intensity continues to ease and lower gross adds with new verification norms should help rationalize cost. This is a a more positive outlook for the industry and the advantage of incumbents. Competition has started to ease and any resultant uptick in rev/min would benefit Airtel via operating leverage. Our analysis of the tariffs as disclosed on the company Websites suggests that base tariffs have remained largely unchanged; however, promotional outgoing tariffs have been hiked by an
average of ~6%, implying ~3% higher ARPM’s.
Incumbents (Airtel, Idea and Vodafone) have the the network advantage in urban and rural areas. This should help them 1) Manage a lucrative post-paid base in