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 ?
The TRAI has issued another consultation paper on Net Neutrality which is an extension of past restrictive regulatory actions (for telcos) such as prohibition of discriminatory tariffs for data services and recommendations on provisioning of free data.
The consultation discusses several critical issues such as the core principles of net neutrality (NN), traffic management practices (TMP), transparency and Continue reading Net Neutrality 2.0 Consultation Comprehensive – Your Opinion Matters
Snapchat has successfully gained popularity amongst millennials. The company is finally set to debut IPO as early as March 17, valuing the firm at between USD20-25b. Lately, we are observing an interesting trend. Facebook appears to be testing Snapchat–like features on several of its properties to compete with Snapchat. Of note, its effort to put photo and video across apps is being accelerated.
For instance, Facebook has launched similar forms of apps (e.g – Poke, Slingshot, Flash, etc.), tested its features across Continue reading FaceBook vs Snapchat may kindle interest in Snow App