(Writes through to include Idea results, comments)
By Aman Shah
MUMBAI, April 28 (Reuters) - Two of India's top three mobiletelecoms network operators reported a rise in quarterly profitson Tuesday, helped by strong subscriber growth for mobile dataservices while strong competition continued to pressure pricesfor voice calls.
Idea Cellular Ltd, India's third-biggest mobileoperator behind Vodafone India, and market leader BhartiAirtel Ltd together spent about $9.5 billion in therecently concluded government auction for airwaves, betting onthe country's significant mobile data potential.
With a majority of the country still using more basic"feature phones", India's smartphone market is expected to growat around 36 percent a year over the next five years, accordingto consulting firm Zinnov, making the higher margin mobile databusiness a potentially lucrative bet for network operators.
Idea, which posted a 60 percent rise in quarterly profit onTuesday, recorded a monthly average revenue per user (ARPU)among its 33.4 million data customers of 150 rupees ($2.38), upfrom 104 rupees a year ago.
Separately, Bharti, which posted a 30.5 percent rise inprofit for the quarter ended March 31, saw its mobile data ARPUrise by 43 rupees to 173 rupees.
However, the companies reported sharp declines in theaverage price achieved for voice calls - the realisation rateper minute.
Despite the jump in mobile data over the past year, voicerevenues still make up close to 80 percent of operator revenues.
Idea posted a 7.1 percent decline in its voice realisationrate to 0.339 rupees per minute for the fourth quarter, whilemarket leader Bharti Airtel recorded a 2.5 percent fall.
Idea Cellular's chief executive, Himanshu Kapania said thatcost pressures remained in the sector but his company would tryto absorb them by expanding.
Otherwise prices would have to rise.
"Whatever scale can't absorb, it would be inevitable thatprice increases would happen," Kapania told reporters in Mumbai. ($1 = 63.0373 Indian rupees) (Reporting by Aman Shah; Editing by Greg Mahlich)
Vodafone (VOD)