Will TRAI Go Neutral on Predatory Pricing Tariff War by Jio ?

The Indian Telecom Regulator – TRAI will decide on issue of predatory pricing in the next few weeks. In response to the consultation paper floated by the regulator in this regard, incumbent telcos (Airtel and Idea) have asked for following considerations – (a) Investments in 2G and 3G technologies cannot be ignored under the logic of obsolescence (b) asked for treating 4G/3G/2G services as a separate class of service. Additionally asked to treat wireline and wireless as separate services. (c) Not allow pricing below interconnect charges (IUC) and IUC should be computed on full costs.

Reliance Jio Infocomm is not in favour of (more…)

Jio VoLTE Basic Feature Phones for Rural India with 2G Coverage

Reliance Jio was able to acquire 800MHz spectrum in 13 of India’s 22 circles. It is yet to orient this network for rural coverage. The company also signed spectrum sharing and spectrum trading agreements with Reliance Communications to complete pan-India 800MHz spectrum footprint. Jio is awaiting clearance from the Competition Commission of India.

Jio plans to roll out 4G VoLTE-enabled feature phones at Rs 999- 1,800. Insiders report indicate the following about Jio’s 4G feature phones. Jio is looking to launch two variants under the LYF brand. One with a Qualcomm 205 chip and another with Spreadtrum chip. The phone could have the following specifications – 2.4 inch display, 2 MP front and rear camera, WiFi and Bluetooth connectivity. It could have (more…)

Jio’s 4G Subscriber Addition Done – Incumbents Fight Back

Reliance Jio’s net active customer addition slowed down further in April to 0.4m compared to 4.1m in March. This number has been slowing every month since December (13.7m net adds) and indicates to us that majority of customers with 4G devices who wanted to try Jio services are already using Jio and incrementally the customer additions will depend on increase in VOLTE device penetration.

While Jio started charging in April, it had not deactivated the non-paying customers in April and thus some of its subscribers are likely to have (more…)

Automation and Consolidation – New Trend in Indian Telecom

The disruptor will always come with breakthrough innovation. In the Indian Telecom industry which is now 23 years old [since private operators were allowed to operate] Reliance Jio Infocomm introduced a new concept of electronic consumer verification known as eKYC authenticating the consumer with the world’s largest Biometric database. Idea Cellular’s eKYC Automation process has reduced Sales, Marketing and Admin cost by a whopping 21%. Earlier telcos wanted to staff more people in the subscriber form collection and verification process in attempt to drive faster subscriber activation yet despite this subscriber activation time ranged anytime between 4 hours to 2 days. Additionally the EKYC process allows telcos to have better control on subscriber quality and align trade incentives accordingly. We expect this to (more…)

Jio Kills Cash Registers of Airtel, Vodafone, Idea Lobby

Jio’s business case, at some level, needs the support of an industry size that is materially larger than what it is today. Jio has a reasonable business case in a market where the other incumbents Airtel, Vodafone and Idea – A-Vo-Id lobby has one.

Jio is well funded by its parent and its discounting model is hurting the A-Vo-Id Lobby and it can potentially drag the industry size down to such low levels in the near term that raising it to the needed for a reasonable business case levels within a reasonable time frame may become near impossible.

In the Worst Case a 60%+ yoy decline in India wireless EBITDA levels of the industry (ex-Jio) in FY2018 to under Rs 200 bn levels. For an industry (more…)

Reliance Jio – 72 Million Subscribers – Captures 55% of 4G LTE Market

Jio’s announcement of 72 mn Prime membership sign-ups were above our expected 35 Mn. The bigger surprise, however, was Jio’s decision to extend free services by another three months despite now having 72 mn subs who paid `99 one-time charge to express their willingness to pay for Jio’s services from April 1, 2017. Assuming around Rs 250 as likely ARPU from these 72 mn subs, Jio has essentially decided to leave nearly USD800 mn ( RS 54 bn) in revenues on the table.

Jio’s free service offerings, since Sep 2016, get another 3-month extension with a slight twist. The fresh three months’ worth of complimentary (more…)

20% Jio Subscribers Opt for Prime Membership

Reliance Jio Infocomm has enrolled customers on its Jio Prime scheme which requires them to do a one-time recharge of Rs99. Jio Prime allow consumers to opt for one of the following subscription plans (validity is 28 days) after 1 April 2017: (a) Rs149, which offers unlimited voice calls and 2GB of data, and (b) Rs303, which offers unlimited voice and 1GB of data per day and higher price points with more data allowance.

Jio’s two channels have been aggressively promoted: (a) offline, through channels such as retail, specialised sales staff equipped with (more…)

Jio Snatches MarketShare of Youth from Airtel

Mukesh Ambani’s Jio is the main catalyst and the lead operator for the Mobile Data revolution in India. Telecom Analysts conducted a survey of 1000 Indian smartphone users was launched into the market shortly after Jio announced the Rs 303 pricing for Jio prime customers.

43% of the participants in the survey have a Jio SIM, and 25% of the total participants claim this is their primary SIM – in other words 58% of the Jio users are using Jio as their primary operator already (the remainder using it as a secondary SIM). This gives Jio a surprising second place position in term of primary SIM share in the market, second only to Airtel with 29% and above Vodafone and Idea with 19% and 9% respectively.

Jio users tend to be younger, skewing highly (more…)

Jio to Offer – Home Entertainment, Security / Automation, Connected Car Solutions

Reliance Jio demonstrated its offerings across various ecosystems, such home, automations, payment solutions, entertainment, gaming, education, connected cars etc.

Jio Connected Car Solution
The connect car platform will help automobiles to become Wi-Fi-enabled with the help of Jio hardware. It will also help in providing users with information about car location, switching on the air-conditioner before entering a car and enhance user safety by sending panic alerts and warnings about handling issues, such as, braking hard, driving at high speeds at lower gear, etc.

Jio Home Entertainment / Security / Automation Solution
Jio demonstrated home automation, IoT and (more…)

YouTube TV across Devices goes Live at Half Cost of Cable

Google announced YouTube TV, a new streaming service across devices (TV, Tablet, Mobile)that features 40+ channels like NBC and ESPN for $35 / mo. Given the robust content and service offerings on top of YouTube’s massive user base and near-ubiquitous distribution platform, YouTube TV could easily surpass subscriber levels of competitors.

The subscription costs $35 per month with no contract (cancel anytime), and will support 6 accounts (3 concurrent streams), each with its own unique recommendations and personal DVR. YouTube TV can be viewed on any screen YouTube is available on, including mobile devices, laptop and desktop computers, and (more…)

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