People talk less in Q2?

Did you know that even mobile phone talk time is seasonal in nature? And that the second quarter, July to Sept period is the ‘lean’ period when people talk less on mobiles? Well, that is what the results of telecom companies had indicated last Q2.

In Q2FY14, Bharti Airtel showed a 4% (QoQ) fall in average usage per customer (AUPC) and Idea Cellular saw a 8% decline. Naturally, this led to a fall in their average revenue per user (ARPU) with Idea’s ARPU dropping 6% to Rs.164 while that of Bharti dropped 4% to Rs.192. And this is not just a ‘one-off’ occurrence this Q2; it happens every Q2. The reason is very simple – most in rural India, being associated with agriculture are out in the farms, toiling on the kharif crops from early morning till the sun sets. That means lesser time to talk and thus the drop in talk times. Both, Idea and Bharti have large number of rural subscribers, with 45% of Airtels coming from villages and 54% of Idea.

The sowing season thus indirectly means off-season for so many industrial goods. But come harvest, the Q3 season especially, just as farmers reap a bounty, so will these very same companies. Such is the cycle of life – all, even the companies are governed by its momentum.