Key Points
Trade payouts by telcos toward mobile number portability (MNP) and activation of new mobile connections (read: SIMs) have fallen around 15-25% in recent months, potentially helping expand operating margins and likely signalling easing of competition in the telecom sector, industry executives and analysts said.. "MNP-related trade spends have come down, with telcos now paying around 250-280 per port-in to retailers versus over 300 some months back," brokerage IIFL Securities said in a report...
"Our recent rural survey indicated that the (telecom) industry has improved its discipline on channel commissions for subscriber acquisitions and MNP in the March quarter," IIFL said in the note...
Bharti Airtel, India's second largest telco, has cut channel commissions in the past 45 days, which has already led to a 2.1% sequential dip in its SG&A (selling, general & administrative) expenses to 2,474 crore in the March quarter, with the full impact likely in April-June..
Market leader Reliance Jio's quarterly SG&A bill - otherwise less than 50% of Airtel's - rose around 6% sequentially in January-March to 1,086 crore, but the growth was half the 12% level reported in the December quarter, FY23...
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