The second quarter numbers of Bharti Airtel make good reading, with robust growth across all segments of operation.

Bharti’s mobile revenues, which grew 7.7 per cent sequentially, benefited from strong subscriber additions, with 6.3 million subscribers being added this quarter, helped by offtake for its ‘lifetime-Rs 495’ scheme. Bharti maintains its leadership position in terms of subscriber base as well as overall market share (23.4 per cent). But mobile ARPU (average revenue per user) at Rs 366 has witnessed a sequential decline of 6 per cent.

The revenue per minute of usage stood at Rs 0.78, also a marginal decline. Lower minutes of usage in its lifetime packages, falling tariffs and possibly lower usage by new customers in rural areas may explain the lower ARPU. A TDSAT hearing is fixed on November 12, and is expected to provide greater clarity on criteria for the allocation of additional 2G spectrum (the band of licensed radio waves), crucial to operators. The announcement of 3G policy, eagerly awaited, may enable operators to offer enriched value added services.

The Broadband & Telephone and the Enterprise services segments have contributed significantly to Bharti’s revenues and margins. The ARPU for B&T has grown 3 per cent sequentially to Rs 1,150. NLD, ILD and landing services — Enterprise carrier division — has also grown over the quarter, as has the Enterprise-corporate division. Bharti Airtel’s global connectivity endeavour in this segment has got a boost with the recently won licence, which will provide a point of presence in Singapore. This will provide a geographic platform for voice, data and roaming connectivity to over 90 countries.

The company has indicated that there will be rollout of IPTV and DTH services over the next few months. If it manages to replicate its mobile success in these businesses, , it will provide additional growth drivers. The rollout of mobile services and 3G services in Sri Lanka is also awaited next year. These initiatives may help broadbase Bharti’s revenue streams.

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