Telenor / Uninor India Positions as Low Cost Operator, Circlewise Operations

Telenor - Uninor India Operations After the Supreme Court’s Feb 2012 decision to quash all of company’s licenses, Telenor bought back spectrum in six circles (AP, Bihar, Gujarat, Maharashtra, UP (E), and UP (W)), shutting down its commercial operations in seven others. Telenor’s Indian Operations Uninor has taken a different strategy for 2G Voice operations in India positioning itself as a Low Cost Operator.

Instead of going for pan-circle network coverage to begin with, Telenor focuses on bringing its network quality at par with the leaders in the market in select clusters in a (more…)

Airtel, Vodafone, Idea Consolidate at Top Position at the cost of CDMA Operators in 2013

GSM incumbents led by Airtel, Vodafone and Idea Cellular have regained the market share after seasonal weakness – in line with historical trends. On a structural basis CDMA / PSU operators have found it difficult to defend their market share despite 10-11% industry growth. Healthy execution and strong brand positioning, we believe, would drive market share gains for top 3 operators (Airtel, Vodafone and Idea). We believe Idea Cellular – as a pure-play wireless operator – will be the biggest (more…)

JustDial Spending Heavily on Sales & Marketing to Expand Reach

JustDial Spending to Expand ReachJustDial, the Local Yellow / White Pages Search Engine which diversified into e-commerce is spending heavily in expanding its reach by adding more sales force augmented with online Ad campaigns.

Currently it has a good presence in about 25 cities, although is touching 100 cities through either its own sales team or freelancers. Further, it intends to spend Rs600-1000mn to increase awareness and promote JD Search+ in FY15. Management believes that despite these additional costs / expenditures, benefits of operating leverage should lead to ~100 bps margin expansion.

Justdial does depend on Google for traffic (more…)

200 Mn Internet Users with 55 Mn Subscribers – End of 2013

India InternetIndia currently has 200 mn+ Internet users growing at 4 mn per month. This compares to 106 mn at end-June 2011. Active users would be around 170 mn. At the end of 2013, India has 55 Mn Broadband subscribers [Speed > 512 Kbps]. However, the real opportunity lies in the mobile area where the number of people who access the Internet through mobile handsets is 130 mn (December 2013). This would rise to 185 mn by June 2014. The number of rural subscribers has gone up to 27 mn as of December 2013 from 4 mn as of June 2012. The increasing affordability of smartphones is driving mobile Internet penetration. Also, given broadband plans are more affordable now, 3G users will rise to 175 mn by 2015 versus 50 mn currently.

Online e-Commerce and Productivity in India
28% of all travel is booked online. 7% of bank users in India access their accounts online. 25% of IT returns are filed online. 47% of classifieds business (more…)

SnapDeal e-nabling Small Retailers to Sell Online & Expand Verticals

SnapDeal Online Shopping Model92% of the US$600 bn market is unorganized. India is a hub of almost 50 mn small and medium businesses. The problem for the offline markets are high real estate costs, low product discoverability, limited assortment merchandising and low reach. Online markets account for only US$2 bn currently.

How online market places are helping? It is easier to figure out trends on online markets and prepare the products accordingly. Also, working capital position of the retailer can be a lot better given low product batches. Mr Bahl gave a specific example of the benefits accruing to one of his customers from low working capital and greater planning and production flexibility. The same company has now been able to successfully branch out into another product category.

SnapDeal lists the following (more…)

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