Telcos’ cut in channel spends boosts margins

Kolkata: 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 Rs 250-280 per port-in to retailers versus over Rs 300 some months back,” brokerage IIFL Securities said in a report.

Likewise, commissions on new SIM activations had also dropped to as low as Rs 109-to-149 per mobile connection from Rs 179 a few months ago.