OnMobile Global the Mobile VAS Products Company recently embroiled into a series of Corporate Governance issues is looking forward to address investor concerns and shift focus to core business. The management in a meeting told that, greater than 50% sales come from caller ring back tunes (CRBT) but ample scope for growth remains given still low penetration. The Telefonica deal – hopes for favorable renewal terms but it remains lucrative nonetheless. Emerging market segment contributed 44% of revenues.
Adverse regulations have hurt domestic segment which is down 30% from its peak. The domestic woes are likely to persist for couple of quarters though actual service activation norms are likely to be less cumbersome v/s what regulator has currently proposed. India revenue has now shrunk for 6 quarters in a row and is down 30% from the peak. OnMobile expects it to remain weak for another 1-2 quarters as the industry transitions to more stringent activation rules. Well this was necessary as Telecom Operators Greed was visible by the growing consumer complaints on uncalled activation of VAS and Deductions on the Mobile.
However, the company is hopeful that the regulator won’t force the industry to follow the highly cumbersome guidelines, which it has proposed currently. Given this headwind, the prospects of the domestic business appear weak.
OnMobile Global’s erstwhile CEO Mr. Arvind Rao, potentially the brain behind the Fraud is now hired by Inside Trader Mukesh Ambani of Reliance Infotel for 4G Rollout. So What does this tell Readers and Potential subscribers of about Reliance Infotel 4G LTE Services 🙂