BUSINESS
REVIEW
Throughout the year, Idea aggressively
invested in securing existing spectrum in
the 900 MHz band ensuring continuity
of services in nine service areas where
licenses were due to expire in December
2015/April 2016. It also purchased new
spectrum in the 1800 MHz band to roll
out its 4G LTE services in two markets, in
addition to eight major markets acquired
during the February 2014 auction.
In 2015, Idea launched 3G services in two
cities, Delhi and Kolkata, and expanded its
3G footprint to 13 service areas. Beginning
23 December 2015, Idea started rolling
out 4G services in the country from four
circles in the south, namely Tamil Nadu
and Chennai, Kerala, Karnataka, and
Andhra Pradesh and Telangana.
Idea has consistently maintained its
leadership in Mobile Number Portability
(MNP) over the last four years. As of
31 December 2015, the Company has
recorded a net MNP gain of 17.1 million
customers.
To cater to the increasing growth of its
subscriber base and to prepare for the
next phase of growth based on mobile
data services, Idea substantially increased
its network capacity in 2015. Throughout
the year, the Company integrated 12,584
additional 2G sites; expanding its footprint
to 122,515 sites covering 7,554 towns and
3,76,122 rural villages. During the same
period, it expanded its 3G footprint by
adding 17,988 3G sites, bringing its overall
3G sites count to 45,732 and launched its
4G network by adding 1,813 4G sites.
Idea has been consistently investing in
optical fibre cable transmission networks
to tap the future potential wireless
broadband needs of its growing customer
base. Idea’s optical fibre cable has now
expanded to over 105,600 kilometres
Optical Fibre Cable (OFC), a growth of
over 12,200 kilometres in 2015.
Financial Performance
For the year ended 2015, Idea reported
an all-round strong performance in terms
of Year To Date (YTD) revenue, Earnings
Before Interest, Tax, Depreciation and
Amortisation (EBITDA) and Profit After Tax
(PAT) growth of 14.5%, 21.5% and 11.2%
respectively. YTD Idea has contributed
RM368.8 million to Group Profits After
Tax and Minority Interests (PATAMI), an
increase of 51.6% over 2014.
Outlook for 2016
Having a track record of being the fastest
growing telecom service provider in
India for the last eight years, Idea has
built its business capacities to be able to
meet the multiple challenges of India’s
telecommunications industry.
Idea’s growing consumer demand and
brand affinity, coupled with its accelerated
wireless infrastructure expansion and
strong cash flows presents the company
with a solid foundation for it to remain on
course to produce consistent, competitive,
responsible and profitable growth.
Moving into 2016, its focus will remain
on strengthening its market standing in
both the Mobile Voice and Data Market.
The phased roll out of 4G services which
began in December 2015 is expected to
be completed by June 2016. Upon its
completion, Idea will cover 750 towns and
villages in 10 service areas with high speed
4G LTE services.
The Company will also expand its Value
Added Services offerings, and plans
to introduce its own range of content
services across various categories
like
entertainment,
information,
communication, utilities and API services.
2014
2014
2015
2015
REVENUE
EBITDA
14.5%
21.5%
Rs Million
Rs Million
231,484
77,473
264,971
94,139
2014
2014
2015
2015
PAT
SUBSCRIBERS
11.2%
14%
Rs Million
Million
22,512
150.54
25,043
171.9
axiata group berhad | annual report 2015
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