Verizon Wireless in the US has introduced a Master Plan for Data services – Share Everything. How does the plan work? The “Share Everything” plans are structured around shared data and multi-device access. Customers choose a shared data allowance and then pay a monthly fee per device to access that data. The plans seem to strike a reasonable balance between stimulating demand and maintaining prices while limiting exposure to pressure on voice and text usage. Customers choose a shared data allowance and then pay a monthly fee per device to access that data.
Verizon’s “Share Everything” plans have been very successful and contributed to a reacceleration in mobile service revenue … this is in combination with maintaining the strongest mobile network in the US and the most advanced 4G roll-out in the US. (more…)
What is the Significance of China Mobile’s recently launched a Fetion public account platform ? The basic feature of the platform is straightforward in that users are able to add a public account as a friend. A large number of derivative services have been developed by account operators, leveraging Weixin’s features such as multimedia interaction and an internally HTML5-enabled internet browser.
These services include:
RSS-like feeds Media accounts such as Donews or Techweb push articles everyday to followers.
Mini tools This type of account allows users to take notes or arrange appointments by interacting with the account. E.g. Users send text or voice message to an Evernote Weixin account and the content is stored.
Customer Relationship Management (CRM)Brands are able to use their Weixin accounts to communicate with customers on a one-on-one basis. Clients of China Merchants Bank are able to quickly check their credit card status via CMB’s Weixin account. (more…)
The mobile news app market is an area of particularly intense competition amongst many internet Giants from Google to Sohu, Baidu, Times of India etc. According to Analysys International, Sohu’s app claimed a 31.8% market share in terms of cumulative downloads from the major app stores by 1Q13.
Sohu’s business model for Mobile News App is of Particular interest for us. The cumulative downloads of Sohu News is more than 5m at present, while the figure is roughly 1m for NetEase and Phoenix New Media and 0.5m for Sina. (more…)
Samsung’s OPM of handsets, which rose from 21% to 22%, were probably better than indicated taking into account the negative impact from the provision booked related to AAPL vs. Samsung case. We think this is impressive given such performance occurred during the weakest seasonal quarter, without a major product launch. Therefore, we think the next several quarters should continuously be strong given the upcoming Galaxy S4 launch and Galaxy Note 3 launch in 4Q13.
Smartphone shipment of 70 mn (12% QoQ growth) is strong given the seasonality and lack of new product launches. Blended handset ASP rose 8% QoQ and OPM expanded to 22% from 20% despite the one time provision took related to the AAPL. However, 1Q total handset volume did not increase, but the smartphone products rose 12% in volume sequentially. (more…)
Idea Cellular Mgmt clarified that the overall RPM remained flat sequentially despite cutting free-mins mainly due to lower
proportion of higher RPM ILD minutes in 4Q. Idea believes the stricter subs acquisition norms by TRAI has discouraged multi-SIM usage and has led to incremental consumer spending in favour of existing SIM card (vs. buying a new SIM); this has also partially led to increase in MOU. The Mgmt does not expect any sharp increase in RPMs and believes that impact of tariff hikes will be gradual.
Idea has seen industry-wide discipline in subs acquisition costs and believes margin expansion will continue if acquisition costs remain in control. Idea stated that its utilization levels are still low and may also add to margin expansion as usage increases.
On Roaming Charges Abolition
Idea stated that if the domestic roaming charges are abolished (which are c.4% of total revenues), tariff balancing may take
place to compensate the loss.
2G & 3G Data
Mgmt indicated that data ARPU is still very low at Rs55 (vs. comparable markets) and it expects continued increase in data usage. Mgmt believes that increase in data usage will be driven more by reduction in prices of data-enabled devices than lowering of data tariffs.