Month: December 2014

Net Neutrality and Where do We Stand in the Debate ?

by

In the Global Telecom industry the most debated topic is Net Neutrality. Wikipedia defines net neutrality as the principle that Internet service providers and governments should treat all data on the Internet equally, not discriminating or charging differentially by user, content, site, platform, application, type of attached equipment, or mode of communication.

Telcos argument is wireless players should be allowed to (1) control the quality of service (QoS) of different data services (to ensure optimal experience for all users on the network) and/or (2) charge differentially for various data services to capture their fair share of the value being created by mobile data explosion. Quite understandably, the OTT players are on the other side of the

Read more

Why 64 Bit Processor is HOT in Mobile Computing ?

by

64 Bit ARM ProcessorIn computer architecture, the term 64-bit refers to the number of bits that can be processed or transmitted in parallel. In the context of a chip, it refers to the width of the registers. A 64-bit register can store 264 different values or can directly access 264 bytes of addressable memory as compared to 232 in a 32-bit architecture. As such, the most obvious benefit of a 64 bit architecture is its ability to address more system memory (up to 192GB vs. <4GB in a 32-bit architecture) and hence increase system performance when more memory is present.

SmartPhone innovator Apple moved to 64 bit mobile computing as early as the iPhone 5s Days. Apple’s A7 chip is rooted in ARM’s

Read more

How SingTel Plans to monetize Group Digital Life Startups / Companies ?

by

SingTel Group Digital Life MonetizationAsian Telecom Conglomerate, SingTel with investments in Service Providers to Apps Developers has established the Group Digital Life initiative. GDL is running at EBITDA losses in excess of SGD100mn pa. There are no explicit break-even targets, and it will largely depend on what else it buys, in our view. More acquisitions could mean more losses in the initial years. We’d like to see various options SingTel may weigh to monetize these investments.

The initial focus for most investments (apps) is to scale users. However, a successful investment should see revenue monetisation by around five years, beyond which its value proposition may have to be re-evaluated altogether – e.g. if something isn’t generating revenue within five years, then one has to question its value proposition altogether.

Arguably, the app is originally

Read more

Will Reliance Jio 4G Launch Dent 3G Subscriber Additions ?

by

Reliance Jio 4G to Impact 3G in India3G adoption in India has been much slower than initially expected. We think dismal 3G penetration was due to a combination of reasons – (a) 3G speed not really being perceptibly better than 2G due to operators’ reluctance to invest in the network and smaller spectrum holdings/size, (b) unavailability of affordable devices (which was the case at the time of launch, but not anymore though), (c) lack of subscriber data usage behavior. However, 3G adoption has picked up over the last few quarters as 3G handsets are much more affordable and the handset replacement cycle has shortened, while a larger proportion of subscribers are willing to use data services.

2G & 3G Shift to 4G Mobile Data ?
It is conceivable that a generation of data-hungry subscribers in India may leapfrog from 2G to 4G bypassing 3G (or at best remaining using 3G for

Read more

Rise & Demand of Connected Intelligent Cars with Advanced Driving Assistance System

by

We believe we are at the inflection of the take-off of technology-assisted driving. The current penetration of Advanced Driving Assistance System (ADAS) is only 3%. With the recent boom of ADAS and semi-automated auto model introductions, consumer awareness has been heightened.

What is ADAS?
ADAS broadly refers to a set of features which make use of internal software connected to sensors and cameras to alert drivers to potential hazards, or even temporarily take control of the car to avoid dangerous situations. Accomplished through radars, cameras, or laser sensors, these features include adaptive cruise control, parking assist, forward collision warning, predictive emergency braking systems, lane-keeping support, pedestrian and signage recognition, and traffic-jam assist.

ADAS will pave the way for semi-automated driving

Read more

Peek into Oracle’s Fusion & SaaS Business Performance

by

After outlining the Project Fusion in early 2005, Oracle Corp undertook what became a six-year effort to modernize its core business applications. It is clear that Oracle has made Fusion a focus for the company and continued investment in this area with a steady cadence of updates since its initial release.

With the new release of Fusion, applications share common middleware (easier to integrate) and embed analytics (something that was arguably ahead of its time) and customers have the option of running their applications either on premise or in the cloud via software as a service (SaaS). The initial success of Fusion is much debated and the product still has not driven a re-acceleration in Oracle’s applications

Read more

Can Google Retain as Default Search Engine on Apple Safari ?

by

Safari search WarIn 2011 Google renewed its deal with Apple to be the default search engine for its mobile Safari browser and this agreement is set to expire sometime in 2015. Apple has recently switched its mobile search provider for Siri and Spotlight from Google to Bing. So Google could either lose the Safari business or that the terms could become less favorable to Google at renewal as Bing is likely to give Google a run for its money. With consistent shift from Browser based navigation to Apps, we estimate that Safari toolbar searches revenue in 2015 is likely to be $4 Bn in the United States and another $ 2 Bn outside the US [based on

Read more

How does India Compare with China & Malaysia in 3G eco-system ?

by

3G Comparison in India, China and Malaysia4 Years after the Limited 3G Spectrum was auctioned in the 2100MHz band, we’ll take a peek into how we are doing with our competitors in Asia – China and Malaysia on various factors. We are classifying based on the Big 4 Factors that help determine the success of Mobile Data.

3G Network Status

  • India – 3G coverage and average data speed remains lowest in Asia. Unlikely to expand given low
    capex guidance and balance sheet constraints
  • China – 3G coverage has already reached ~75%. Average data speed is best in the EM space and comparable to DM markets. Massive 4G buildout ongoing
  • Malayasia – 3G networks are already built-out however we see investments remain soft in the LTE space. Thus in our view network pull factor is relatively soft in Malaysia.

SmartPhone Availability

  • India – Smartphone penetration is ~17% of population base. Expect it

    Read more

Reliance Jio Infocomm Launch – What will be Similar to 2003 and Different in 2014 ?

by

Reliance Jio Infocomm LogoReliance Jio Infocomm launch is expected to be a game changer in the Indian Telecom Industry. We believe Reliance Jio will help increase the affordability of data services, by reducing tariff / equipment costs, and evolve consumer usage patterns, by introducing several unique and new services.

We’d like to compare the similarities and differences between Reliance Infocomm’s [Now RCom] 2003 launch [Launched on 28-12-2002, but took off in mid 2003] and the current one [Reliance Jio]. The key similarities, in our view, are the aggressive offerings with newer technologies, which would likely lead to an expansion in the market. The key differences, in our view, will be the relatively late entry this time, which would lead the company to follow an aggressive subscriber poaching strategy, and R-Jio’s inclination to use / share

Read more

How Bharti Infratel Grows & Makes Money ?

by

Bharti Infratel GrowthIndus Telecom Towers and Bharti Infratel together constitute 38% of the total tower portfolio in India.

Telecom Tower Tenancy & Demand
Bharti Infratel suggests that a vast majority of its tower have two tenants. c40% of BIL’s towers have single tenant. Management highlights that the company has one of the best quality tenants. BIL’s top three customers contribute to 85% of its revenues and tenancies. The company also suggests that the top three customers have more loading. Bharti Infratel is not building new towers for Reliance Jio (RJio), which typically comes in only as the second or third tenant on their towers. RJio has started impacting BIL’s financials only in the last two quarters.

Management suggests that further growth

Read more