Telecommunications & Technology
The Google Management highlighted three key areas of focus outside of the core ad business.
Chrome-based hardware: Chromecast, and broadening distribution of Chromebooks in partnership with OEMs)
Digital Apps and Content: Google Play is rolling out into new regional markets, and Google is
working to add to the available content (including textbooks and partnerships with HBO and DC Entertainment).
Enterprise Software: New enterprise clients include
The GSM industry added 4.4mn subscribers (net) during September 2013 led by the incumbent operators— Airtel, Idea and Vodafone (3.6mn combined). All private operators added subscribers, with Idea leading the way with net additions of 1.2mn.
The incumbents represented 81% of the additions, significantly higher than their GSM market share, which reflects the continued consolidation in the industry. We note that since January 2012, the top three players (Bharti, Vodafone India and Idea) have been able to increase their
One of the key drivers for the Indian data growth story will be the availability of low-cost smartphones. We understand that c18m smartphones were sold last year in India and c25-30m smartphones are expected to be sold this year.
There has been significant progress already made, we believe the critical milestone will be when major brands such as Samsung, Micromax, HTC and Nokia are able to launch fully functional smartphones in the USD50 range. At present average price range in the branded smartphone segment is between USD175-500. We do believe that over the next 2- 3 years, India will be a market for refurbished whitebox smartphones as well.
One of the interesting moving
The long-term prospects for CDMA are challenging, and according to TRAI, at a time when the subscriber base for GSM increased by 65% in the last three years, CDMA recorded a decline of 30%. ARPU for in Dec-2012 for GSM (Airtel) was Rs 185 and that for CDMA (RCom) was Rs 117 a difference of 60%. RCom ARPU includes that of GSM as well.
Separately, we believe there could be a potential voluntary exit by CDMA players, provided the government/regulator agrees to compensate the CDMA players for forming the E-GSM band. We note that GSM players have suggested forming of the E-GSM band, which should release addition spectrum in
Unlike in India where Reforms are driven solely by Agenda Driven Politics with Motive of Heavy Corruption, China has created a niche market for itself. They have created a eco-system of Network Gear Manufacturers which include top brand names such as ZTE, Huawei and China Communication Services. Over the next 12 months the Big 3 Operators China Mobile, Unicom and Telcom will start 4G/LTE capex cycle which would negatively impact their near-term earnings and could drive vendors’ re-rating on faster earnings growth. Long term, LTE could save data costs of Chinese telcos and drive data usage.
Chinese telcos will increase by 7% in 2013 and 4% in 2014, driven by LTE and transmission network capex. We expect total LTE capex to almost double in 2014 and
The Latest China Group Buying reports indicate that total transaction value in July and August reached CNY3.03bn and CNY3.69bn respectively (up 56.2% in July and 74.9% YoY in August vs +56.4% in June), creating another new high in terms YoY growth in August, last seen in January. The number of vouchers sold in August increased by 47% YoY, compared to 15% YoY growth in the same month last year. Transaction growth in the first two months of 2H13 was driven by an increase in both the number of purchasers and average deal price.
The number of group deal buyers had been somewhat stagnant since it first reached 45 million in November 2011. Yet beginning from 2013, the number of purchasers has been
38 leading companies in the Japanese Internet (including games) and IT services sector have climbed 71% by end-September 2013. We think the rise in valuations is in large part a reflection of the higher rate of profit growth forecast for FY13.
The Order of preference among subsectors has been e-commerce > IT services > advertising > digital content (games). It is the reflection of the improving macro environment and increasingly swift uptake for smartphones and tablets. Among users of the Internet—including smartphone users—appetite for online shopping is voracious. Advances in advertising
Anyone who has used calling cards, Skype or Viber to make international calls from Ireland is aware of all their drawbacks. For calling cards, you need to constantly add money, enter long pin numbers, and if you run out of minutes, you can get cut off mid-sentence. With Skype and Viber, you need to always ensure that the person you are trying to reach has access at the same time that you do. And let’s face it – who hasn’t had connection problems with Skype and Viber?
And that is where eMobile comes in. eMobile is an international
The next leg of growth will be supported by emerging markets. This will drive a shift towards commoditisation and standardisation, facilitated by lower barriers to entry. With the whitebox market (no-brand) accounting for c21% of handset revenues in 2015 (up 2ppts from 2013), third place after Samsung’s 31% share and Apple’s 24%.
Analysts forecast for whitebox smartphones by 18%/40% for 2013/14 and also increased Average Selling Price [ASP] forecast by 19%/40%. We expect feature phones to account for only 4% of handset market revenues in 2015 with feature phones, driving
While Apple would like to pull the iPhone 6 launch forward, we believe that it is highly unlikely due to the switch to a new display technology (in-cell for the iPhone 5 and 5s to on-cell for the iPhone 6). The iPhone 6 will likely have a new design and 4.8” display.
Apple and the OLED
For the iPhone 5, Apple took a more revolutionary approach and used the first massmarket in-cell display. An in-cell display embeds the touch inside the LCD array in an elegant design that is even thinner and lighter than GF2. Unfortunately, after investing so much to develop in-cell, Apple discovered that it does not scale well beyond 4” displays. In comparison, Samsung is using on-cell OLED displays for its flagships phones. OLED has the advantage of not requiring a color