2G/3G Data Revenue to Grow 40% YoY

3G business in India currently has negative returns, but should turn positive by F2016. Airtel and Idea reported sequential nonvoice revenue growth of 5% and 13%, respectively, in F3Q13.

Operators have been inching up their 2G data tariffs, while 3G data tariffs have come down by ~7x since the beginning of 2012. Data volumes in MB have grown by over 20% in the last two quarters, after a slow start, and the decline in data ARMB has been arrested. 2G/3G data revenues will be the largest contributor to data revenue growth, with annual growth of ~40%.

Smartphones / Data-enabled handsets priced within Rs5,000 help increase data traffic.

Broadband Subscribers Reach 15.05 Mn + Wireless 867.80 Mn

Broadband Subscribers in India reached 15.05 mn at the end of March-31-2013, as per the Data Released by Govt of India. State owned BSNL & MTNL together control over 65% of the DSL broadband Market in India.

The Top five Broadband Service Providers in terms of market share (based on subscriber base) are:
BSNL DataOne (9.93 million),
Airtel Broadband (1.40 million),
MTNL Tirband (1.08 million), [Serves only Mumbai & Delhi]
Hathway (0.37 million) and
You Broadband (0.31 million).

Wireless Subscriber base has reached a whopping 867.80 Mn after months of decline because of license cancellation and cleaning out low end multiple SIM users. While the Active Wireless Subscriber base is 723 Mn based on Visitor Location Registry. India has 525.30 Mn Urban Mobile Subscribers while Rural number stands at 342.50 Mn.

Mobile Number Portability reached 89.70 million at the end of March 2013 from 86.83 million subscribers at the end of February 2013.

Will Google Launch High End Android SmartPhone using Motorola Mobility ?

Motorola Android Mobile Holiday 2013Purchasing Motorola in May 2012 for $9.5bn ex-cash was confusing to many of us. Since then, Google has rationalized the business (sale of Motorola Home, divestiture of manufacturing operations and layoffs) and the net cost after asset sales and tax benefits has declined to an estimated $6-7bn.

Given Google’s timeframe for Motorola’s hardware product cycle revamp (12-18 months), it is reasonable to expect Google to launch its own high end Smartphones and tablets in Q4-2013, in time for the holidays. If Google can generate the same interest in its Motorola hardware products as it has for recent Nexus products, the product launches could be a catalyst. (more…)

Mobile Vs PC Access of the Top 25 Sites

The significant increase in mobile usage can be attributed primarily to the widespread adoption of Internet-enabled smart phones and tablets in 2012. Per ComScore US smartphone Web users are up 30% y/y to 125mn (Dec 12), while Worldwide mobile users are up 45% to over 1bn.

The Following Chart Shows the Mobile Vs PC Access of the Top 25 Sites in the United States as per comScore Data
Website Traffic Mobile vs PC

Top 10 Video Online Sites in China

While China’s online video market has consolidated further at the expense of smaller competitors, competition for Youku remains intense with key rivals, such as Tencent, iQiyi, and Sohu, which enjoy financial strength and synergies with their core business.

Youku and Tudou combined for ~31% of online video sales market share in China, followed by Sohu and iQiyi with ~10% each. However, Youku and Tudou’s market share dropped from mid-30% at the end of 2011, due partly to the sales force restructuring after the merger was announced in 3Q12. Meanwhile, Tencent and iQiyi have been gaining market share over the past 12 months.

The following Chart Shows the Top 10 Online Video Platforms in China
China Online Video MarketShare

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