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…)
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…)
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…)
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 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…)
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…)
Reliance Jio started by offering free services as it wanted to test its network capacity. Jio also wanted to eliminate the fear of using data created by Airtel, Vodafone and Idea amongst Indian consumers, who were not using data due to high costs.
How Jio Built Network Capacity for 4G LTE all IP Network ?
Team Jio explained that one needs to keep in mind that it is not just spectrum multiplied by towers. Capacity is also about SINR (Signal to interference and noise ratio) multiplied by backhaul. Jio has 60% optical fibre backhaul Vs mere OFC backhaul 20% for Airtel and others. It also has 3-4 years head start on fibre, since it is difficult and expensive to lay fibre. Interference is controlled by single sector cells, signal ensured device support, and real time analytics. Even after matching plans, competition is yet to see a massive increase in consumption, owing to poor SINR. Jio already has a real-time automated network tuning and depends less on (more…)
Artificial Intelligence – AI is getting more real. It can help generate massive amount amount of wealth in the medium term. The investments in this field have increased significantly over the past two years. Companies like Google, Facebook, Microsoft, Uber and others have significantly started to acquire companies with AI expertise.
AI is having use cases across industries like accounting, healthcare, education, the more prominent impact of AI is on the work which is more routine in nature. There have been numerous examples of companies / industries which have been impacted or disrupted through use of AI. For instance, (more…)
Reliance Jio’s free pricing blitzkrieg has triggered the largest round of consolidation in the telecom industry. Vodafone and Idea Cellular are reportedly in talks for what could possibly be an all share merger deal; Vodafone indicated that its 42% stake in Indus is excluded from any potential transaction. Such an agreement would combine the 2nd and 3rd largest domestic telco operators, commanding ~40% revenue and 35% subscriber market share, ahead of Airtel’s 31% revenue and (more…)
Amazon is continuing its push into the auto category, now into auto parts. More specifically, Amazon has reportedly struck first party supply contracts with some of the largest auto part manufacturers, including Robert Bosch, Federal-Mogul, Dorman Products, and Cardone Industries. We have seen Amazon grow and take share in many categories through its strategy of working to improve selection, SKU availability, and the amount of inventory sold first party and available for Prime same day, 1 day, and 2 day shipping.
If adopted, the Amazon Vehicles business and Garage functionality (and accompanying improving auto parts offering) would (more…)