The Cabinet will decide on the proposals to reduce the base price on the 800MHz CDMA spectrum by 30-50%. Although the auctions for CDMA did not attract any participants in November, we believe that Sistema could likely expand its footprint in the CDMA category, since it already owns 2.5MHz of spectrum.
The recently concluded auction marked the exit of four players in India—Etisalat, STel and Loop. Although these players had limited market share, their presence did impact incumbent tariff strategy. We do not expect Etisalat, STel and Loop to return to the market.
If we look at the latest Gartner Hype Cycle, mobile internet has already climbed to the ‘Slope of Enlightenment’ and been on its way to mainstream adoption in less than two years. Three years into 3G initiation, operators, platform servicers, hardware providers and content producers have finally accumulated enough users and resources to kick start the entire value chain in 2012 as shown below (more…)
Airtel seems to have recovered some ground in the quarter ending September 2012 by plugging its loopholes in customer support quality, which was the main reason for its weaker performance in the previous two quarters.
Based on TRAI’s reported data for Quality of Service of each operator, and its satisfactoriness against TRAI’s prescribed benchmark, we have given circle-wise QoS values for each parameter (value 1 if parameter is not met by the operator, otherwise value is 0). Taking an average of each of these parameters and then equal weightage to the parameter heads, we arrive at
circle-wise QoS values for the operators. The values are then compared across operators at the circle level to assign them with scores (weakest operator has the highest value and score 1, whereas the best operator has score 5). We measure change in scores to test the impact of service quality over subscriber market share. For national scores, we take the weighted average using a proportion of subscribers from each circle for that operator as weights for circle level scores.
Before the mobile OS and smartphones were full-fledged, applications on mobile were mostly migrations from desktop version or complementary access to existing online services. However, we believe contact-list-based multi-media instant messaging application has potential to become the killer app in the 3G mobile internet age, similar to what SMS has done in the 2G era. The apps feature intuitive UI that enable users to communicate in voice, pictures and video messages in real time with minimal data consumption. Recent exponential growth of Tencent Weixin, Xiaomi Miliao in China and KakaoTalk in Korea are triggering transformational changes in people’s daily communication.
Multi-media messaging could help people manage (more…)
Along with the one-time spectrum charges, the Cabinet also approved the M&A policy. This policy suggests that if the acquiring company holds spectrum against the entry fee paid, then the resultant entity would have to pay to the Government the difference between the auction-determined price and the entry fee paid earlier.
This key policy move eliminates (more…)