Reliance Jio’s launch will accelerate consolidation leading smaller telcos to exit market overtime. Currently the top 3 telcos have 70% of total market share with remaining 8-9 telcos sharing the remaining 30% market share. The key value proportion of smaller telcos to consumers has been cheaper offerings than larger telcos but sometimes with inferior coverage. With Jio likely offering cheaper tariffs than existing telcos in the market, we believe that it would lead to subs churning from Jio. Larger telcos may be able to Continue reading How will Indian Telecom market Progress Post Jio Launch ?
Few Days ago, when I wrote about 80% of Indian Mobile Telephony being supported by Microwave backhaul and just 20% of Optical Fiber backhaul, I had told will come back with the deployments of microwave elements in Indian Sky. Continue reading Indian Companies Deployed 2.1 Mn Microwave Elements in the Last 8 Years
The Entry Level SmartPhone / Feature Mobile Phone [Sub $200] market will be under the control of WhiteBox Phone Manufacturers in 2013. The Mid and High end SmartPhone market belonged to Brands such as Samsung, Apple, HTC etc. However, the equation is likely to change as we have already seen with the disruptive launch by Xiaomi in China.
Xiaomi launched MI2 based on QCOM’s first quad core processor, MSM 8064 (definitely the most powerful mobile processor in the world right now), with 2GB of mobile DDR, 4.3 inch HD quality display (342 ppi vs iPhone 5 of 326ppi and HTC One X of 312 ppi) and 8MP camera sensor with aperture of f/2.0. From a pure hardware perspective, MI2 probably has the most advanced hardware in the world and is also priced at only US$310, around half of the retail price vs smartphones with comparable hardware specs. Continue reading Will Internet Companies Cannibalize Mid-End SmartPhone Market ?
In the Rich Feature Phone Market, most of the Chinese / Taiwanese brands are profitable (razor thin margin). Despite higher ASP driven by smartphone, the vast majority of these brands could actually be loss making. In my view, these brands are making even poorer profitability on smartphone than on feature phone due to higher R&D cost, rising marketing expenses, and much shorter product cycle for them to recoup the cost.
With whitebox makers now selling 2G smartphones below US$50 and 3G dual core smartphones around US$100, there is very little room for Chinese brands to make money in the sub-US$100 segment. With the whitebox 2G smartphone dropping below US$50 and 3G below US$100, expect whitebox smartphone to take meaningful market share in other emerging markets in 2013. Continue reading WhiteBox Mobile Handset Manufacturers Force Brands to Look Above $100 SmartPhone Market
Telecommunications Industry by design is a capital intensive business and with rising Spectrum Prices, the CAPEX is still higher. World over the Telecom industry operates in Lobby or in an oligarchic setup and is no different in India. One thing is certain, everybody from the GSM incumbents to potential entrants like Reliance Infotel are using every means to manipulate Telecom Policy. But with 2G Spectrum Scam in the public domain, any large scale manipulation is ruled out as it will lead to series of Court Room Battles.
The need to increase Mobile Call Tariffs gets stronger as the due date for remitting additional spectrum charge nears. One can expect a sustained and calibrated, tariff hikes. The key questions are Continue reading How much Mobile Call Tariff Hike Required to Offset Regulatory burden in India ?