MakeMyTrip Flying High on Airline Bookings

MakeMyTrip Airline BookingOnline Travel & Hotel Bookings site MakeMyTrip management Mr Rajesh Magow (Co-founder & CEO – India) and Mr Mohit Kabra (CFO) in a call highlighted the status of their business amidst most airlines have already reduced OTA (online travel agents, such as MMYT) commissions to 1% (from 5-6% earlier), but allowed OTAs to charge a convenience fee on bookings. Management thinks that the revenue model might shift to a ‘convenience fee only’ model with zero commissions in the worst-case scenario.

MMYT delivered a solid Jun-14 quarter with USD 35.5 million in revenues i.e. 26% of the upper-end of its FY15 guidance of USD 136 million. Despite the strong quarter, the company did not increase guidance primarily to ensure that the demand uptick witnessed in the seasonally (more…)

Taxi Booking – New Battle Ground for Chinese Internet Giants

Online TaxiBaidu and car rental company Yidao Yongche yesterday announced that the two companies will jointly launch a business car rental service “Baidu VIP Car” The Chauffeur driven service will be supported by Baidu Map, with the first app to support the service soon to be released on the Android platform. Founded in 2010, Yidao is a leading car rental company in China. Its service currently covers 74 cities in China and also 3 cities in the US.

With China’s three largest internet platforms all having launched ventures within the car rental market, the space seems to have become a new (more…)

Reliance Jio’s Massive Optical Fiber Network + 5 NationWide Data Centers

Reliance Jio OFC NetworkIndustry Channel Checks are indicating that Reliance Jio Infocomm has quietly rolled out ~100,000 Rkm (route kilometer) of optic fibre cable, and the rollout continues at a fast clip. This is already comparable with fibre rolled out by the rest of the industry. Sources Indicate Reliance Jio already has the largest intra-city optic fibre network with 85,000+ km across 700-800 towns. This is a major differentiator for mobile backhaul in an industry with sub 10% fiber penetration into towers. Till date, Airtel Vodafone and Idea Cellular have used 12-24 fibre threads, while RJio is using mostly cables with 288 fibres (in some cases 96 fibres).

What if Reliance Communications & Reliance Jio OFC Networks Complement Each Other ?
Till now, RCom was believed to have the largest fibre network among private operators, with an intra-city network of ~70,000 Rkm [Once again laid under the direct project Management by (more…)

How Many Towers Reliance Jio Requires for Launch ?

Reliance Jio Infocomm LogoThe entry of Reliance Jio into the 4G space is expected to accelerate data growth / pickup for operators. The 4G LTE rollout has taken off with a very slow start. Empirical data suggests Operators will need more 3G towers vs. 2G towers because 3G is on higher spectrum (2100 MHz) and data networks are non-scalable. Importantly, data coverage shrinks as a result of increases in additional subscribers, i.e., additional data usage since the BTS has limited data capacity. Extending the same analogy, 4G spectrum is at 2300 MHz band, and one BTS has coverage of about 300-400 meters at this spectrum versus 1,000 meters at 900 MHz spectrum. Hence, the number of BTS required for providing seamless 4G LTE data coverage will be significantly higher.

Reliance Jio Infocomm would require (more…)

Bharti Infratel to Ride on Incremental 3G /4G Tenancies

Bharti Infratel 3G 4G TenancyThe nature of growth in the tower industry has undergone a substantial change, reflecting the change in maturity, structure and growth drivers of the mobile telecom sector. The coverage of key mobile operators is now more or less complete. The focus is now on augmenting voice capacity and data coverage. As a consequence, the tower industry growth is being driven more by increase in tenancies than through new tower additions.

According to Bharti Infratel management most 3G sites are co-located with 2G sites and over
time, as data grows, standalone 3G sites would drive (more…)

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