Month: January 2014

Which is the Best Fit Spectrum for Reliance Jio Infocomm ?

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Reliance Jio Infocomm Spectrum Bid MeetingReliance Jio Infocomm currently has a pan-India 2300 MHz spectrum which it acquired in the 2010 auctions. In our view, for a robust business model, R-Jio may need two bands of spectrum – one for capacity (which could be its existing band 2300 MHz or 1800 MHz) and one for coverage (which could be either 900 MHz or 850 MHz or 700 MHz).

In our view, to have a robust business model, R-Jio may look to get a coverage band spectrum which supports a mature LTE ecosystem in the future. This could be either 700 MHz (as and when the government auction it) and/or 850 MHz (as and when the government

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The Rise and Rise of Instagram

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If you fast-forward not quite two years later and Instagram has become a leading platform both for users and brands. We look at the growth in adoption of Instagram both by users of most demographics as well as, importantly, by brands (and future potential big Instagram advertisers).

Both the number of brands with active accounts (accounts that are used more than once per month) and the number of brands that regularly post photos (a common marketing use case) has increased by more than 50% over the past year. Furthermore, the percentage of global

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Reliance Jio Competes Airtel, Vodafone for 900 + 1800MHz Spectrum

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Reliance Jio Infocomm LogoFor the 1800MHz band, a new entrant needed to deposit Rs19.2b to be eligible for pan-India spectrum while in the 900MHz band this was Rs4.4b for the circles of Delhi, Mumbai and Kolkata. Reliance Jio Infocomm Ltd has furnished higher than the required INR23.6bn bank guarantee (INR19.2bn in 1800MHz and INR4.3bn for 900Mhz), indicates that it may bid for pan-India licence in 1800MHz and also for three circles in 900MHz. We believe the company’s strategy in auctions could be the differentiating factor in terms of aggressiveness in the bidding process.

Airtel and Vodafone have deposited INR37bn and INR28bn, respectively. Idea has submitted a bank guarantee of INR 15bn; others, including RCOM, Tata Teleservices, Aircel and Uninor have reportedly submitted total bank guarantees of over

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What is the State of 4G LTE Globally ?

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State of 4G LTE GloballyAs we began the year 2014, 244 Wireless Operators have commercially launched LTE networks in 92 countries and 499 operators investing in LTE in 143 countries.

4G LTE can be deployed in two different combinations and the Relative Comparison of FDD LTE vs. TDD LTE is as shown below.
Deployment Frequency – TDD is offered primarily in the above – 2 GHz spectrum range whereas FDD is offered in the sub-2 GHz spectrum (700, 800, 900, 1800, 2100)
Paired Spectrum – TDD does not require paired spectrum as both transmission and reception occur on the same channel. FDD requires paired spectrum with sufficient frequency separation to allow simultaneous transmission and reception. TDD LTE ensures maximization of available bandwidth as the download to upload ratio are flexible.

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Why Reliance JIo Infocomm will Bid in Spectrum Auction ?

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Airtel , Vodafone, Idea Cellular (Idea), Reliance Communications (RCOM), Reliance Jio (RJIO), Tata Teleservices (TTSL), Aircel and Uninor have submitted applications for participation in the 900MHz and 1800MHz auctions to be held in February 2014. The previous auction (March 2013) had failed to elicit any response due to the high reserve price and stretched financials of operators. The February 2014 auctions were anticipated to receive better participation and aggressive bidding (in select circles).

The recent deal between RJIO and Airtel, which has accelerated the former’s rollout plans, could heighten competition in the upcoming auctions. However, even post availability

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JustDial’s Local Search Gets More Competitive with Rise of Getit

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getit local search business vs justdialWith the rise of Internet penetration in India, SME-related search and allied services are likely to undergo a significant transformation. Getit Infomedia (Getit) is one of the key players in this fast evolving landscape. Getit is building a formidable presence in India’s local search market through acquisitions and alliances with global Internet brands.

India’s SME ad market has already changed significantly when voice-based directory services (notably, Justdial) expanded this market and gained market share against traditional print classifieds / yellowpages services. In our interaction, Getit’s CEO indicated that with increasing Internet penetration, the SME ad market is likely to expand and undergo another significant shift

Getit Partnerships & Expansion
Getit expanded its SME relationships by

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Delhi will witness heated Auction of Spectrum from Airtel, Vodafone, Idea, Uninor & Videocon

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Spectrum Auction IndiaA steep cut in Delhi Circle’s reserve price makes it an attractive circle for new licensees. Our framework for new licensees suggests NPV remains positive till 50% higher spectrum prices. IDEA without 3G spectrum could be an aggressive bidder in Delhi. Spectrum prices may rise more than 50%, if incumbents want to deny IDEA 3G spectrum in Delhi.

A significantly lower reserve price compared to the market size, indicated by the high industry revenue / reserve price for the 1,800MHz and 900MHz bands.

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800MHz Spectrum Auction Imminent

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2G 3G 4G Spectrum Auction IndiaTRAI has issued a consultation paper on setting the reserve price for auction of spectrum in the 800MHz band. This is after the DoT expressed its intention to auction this spectrum along with 900MHz and 1,800MHz, given the government’s focus on fiscal consolidation and revenue loss in case of non-auction of 800MHz spectrum.

TRAI had earlier suggested to DoT to explore alternate usage of this spectrum band and to consider adoption of E-GSM (Extended-Global System for Mobile), given the falling popularity of CDMA (Code Division Multiple Access) technology (800MHz is used by CDMA operators) and the fact that the CDMA subscriber base

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