Reliance Jio Infocomm is a grand experiment in extreme capitalism; an experiment where a company, backed by the balance sheet and cash flow strength of the parent’s Oil & Gas business, has unleashed what we call brute force of capital with business strategy which can draw parallels with the operations in Silicon Valley.
Jio’s disruption in the 4G LTE Space has caused #2 (Vodafone) and #3 (Idea) players to consider and announce a merger (in-principle agreement announced; not consummated yet) we do Continue reading Jio Heat Wave too intense for Vodafone + Idea – Is TRAI Biased ?
Twitter continues its push into live video with the launch of Periscope Producer API, a new tool for sharing live video aimed at larger media firms and broadcasters. The API will allow creators to connect their equipment to Twitter in order to stream live video directly to its network. The API enables third-party applications to authenticate Periscope accounts, configure streams, start and stop broadcasts and Continue reading Twitter’s Periscope Live Video for Networks to Compete YouTube / Facebook
In the Indian Telecom industry, Data and Voice markets differ in elasticity. Voice is demand constrained with fixed time availability, and service differentiation is difficult. For data, demand will be driven by screen size, resolution, and speeds. Users are also likely to spend more time on data. By end-2017, Jio will have capacity to offer 4G LTE data of 4 Bn GB/day and Voice of 14 Bn min/day
India has 124 Mn 4G Smartphones of which Continue reading Why Reliance Jio Priced the Prime Plan at Rs 303 in 4G LTE Data Tariff War ?
The business model due to digital media is not changing but is expanding its reach. The US$35b FMCG market would also be influenced by the digital media. There are 350mn internet users today and these are likely to increase to 650mn users by 2020. Of these, 250mn users are likely to be from rural India. Women would account for 200mn users by 2020. The medium of advertisement is slowly shifting from Television to the Internet.
According to Ramesh Bhaskar, Industry Head – FMCG, Google, Continue reading Indian FMCG Brands Leverage Highly on Google Search
With the extension of free trial to Mar 2017 and recent announcement of incremental investment of Rs300 bn in the telecom venture, Jio is clearly not pulling any punches. This forces incumbent telcos to speed up 4G rollouts as sunsets on 2G networks which are a drag on the precious spectrum as we head into an era of convergence.
Whilst there are media reports of incumbent telcos considering a merger, we believe that the same is unlikely to fructify given: (a) all three incumbent operators have significant revenue market shares (>19%) and are unlikely to be Continue reading Merger of incumbent Vodafone + Idea or Case for Active Infra Sharing ?
Idea Cellular has a higher rural exposure than other larger telcos. Since the rural consumers have greater usage of plain 2G Voice, Idea will be more vulnerable in case the trend of unlimited voice plans pick up (Airtel followed Jio in launching unlimited packages). Reliance Jio has further highlighted the launch of affordable VoLTE mobile handsets at price points of less than Rs 2,000 targeting the mass rural consumers.
Idea’s exposure to high-end urban consumer Continue reading Can Idea Cellular combat Jio / Airtel’s Free Voice onslaught ?