Month: March 2015

Mobile Social Platforms – Instagram & WhatsApp to be Monetized by Facebook

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Instagram-whatsapp-monetizationInstagram and WhatsApp’s large user base and high engagement levels suggest a large revenue potential for Facebook (FB).

Instagram is a mobile online photo sharing, video-sharing social network service that allows users to take photos and videos and share them on its platform. Given growing use of photo sharing, we see Instagram as a well-positioned as a social and mobile platform play, and a nice compliment to the Facebook audience given a younger demographic profile of the site.

Instagram has exceeded with 300mn MAUs expectations. Site activity is impressive with 70mn photos shared per day and 2.5bn daily likes. Globally, users spend over 20 minutes per day on Instagram, which sets the foundation for material advertising dollars. We see a $4bn+ revenue opportunity and potential valuation range for Instagram at $30bn – $37bn based on user and potential revenue comparisons to

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2015 Spectrum Auction Implications – Entry Cost Rises, Tariffs Look Up

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The mega 2015 spectrum auctions finally concluded after 19 days and 115 rounds of aggressive bidding. The Clearing Prices are as shown in this chart.

Entry Cost for Wireless Operators Rise Significantly in India
Even as most of the challengers (barring RCOM) did not face spectrum renewals in these auctions, their medium-term prospects of survival in the Indian wireless market just got bleaker, in our view. High spectrum prices are now a reality, for all operators, irrespective of their revenue market share. Spectrum pricing has now hit a level where even the most efficient operators

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Network Services: Exponential Data Boom for Tata Communications

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Tata Communications’ Network Services include dedicated point-to-point connectivity (IPL or NPL), IP-based internet connectivity and multi-location connectivity through Virtual Private Networks (VPN). The network service business derived significant benefits from exponential growth in internet traffic. However, due to significant fall in delivery price, the overall network business managed to report mere 12% CAGR over FY10-14. VPN business (less sensitive to pricing pressure) reaped the benefit of higher penetration of remote infrastructure management and cloud computing and

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Apple Watch Sucks – Another iOS Controlled Device

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Apple Watch SucksApple Watch is a Big Disappointment and the very first look of it Sucks probably signifying the end of innovation at Apple with the demise of Steve Jobs.

It is equipped with features like customizable Glances, health and fitness capability, Siri functionality,
and numerous third party apps which are already available in any of our smartphones. The Apple Watch is designed to be managed through a user’s iPhone, with the Apple Watch app available for download in iOS 8.2 (available today). The device

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What are the Opportunities on Mobile for Google’s Search Business ?

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Google Mobile Search BusinessAs mobile takes the center stage with evolution occurring from Emerging Markets, we do see a number of opportunities for Google search to gain share of mobile ad budgets over time, namely – 1) the mobile app install ad space; 2) improvements in mobile site and app optimization, and 3) improvements in mobile app deep linking and indexing.

Mobile app marketing within Google search
Mobile app installs have been a key component of Facebook’s success on mobile; we estimated that this was over a $1.5bn business for the company in 2014. Google very recently entered this market, that it will let developers begin serving ads in its Google Play app store. Given the size of Google Play, with 46bn estimated app downloads in 2014, we see

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Google’s Video / Display Advertising Metric & Road Ahead

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Youtube Display Video AdsGoogle’s VP of Display and Video Advertising Products, Neal Mohan highlighted brand advertising as a growth opportunity for Google and YouTube as the centerpiece of that effort.

Mohan provided new metrics about YouTube, including: 1) it attracts over one billion users per month, 2) the amount of watch-time is growing 50% y/y, 3) the innovative TrueView skippable ad unit on YouTube is growing impressions nearly 75% y/y, 4) YouTube has more 18-34 year-olds than any cable channel, 5) YouTube payouts (rev share) to content creators grew by ~50% y/y in 2014, and 6) that there was over seven million hours of ad content on YouTube and last year four of the top 10 most viewed videos on YouTube were ads created by brands/their agencies. These data points

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Is Reliance Jio 4G LTE Launch Strategy Similar to BOLT ?

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Reliance Jio 4G LTEMukesh Ambani’s Telecom 2.0 Dream is taking shape with Reliance Jio Infocomm. There is has hardly any operator in any other market with a 4G offering without any history (2G/3G legacy). Well, almost right except for a small player in Indonesia named Bolt Super 4G.

Bolt in Indonesia is a 4G only player with an exclusive data offering. Though it is nowhere comparable to RJio in size, ambition and assets [No doubt, RJio with its all-encompassing licences allowed to provide both voice and data services, much greater Pan-India spectrum

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Reliance Jio Infocomm Keeps All Options Open for Spectrum Auction, Including False Bidding

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Mukesh Ambani Led Reliance Jio Infocomm has deposited Rs 4,500 crore as earnest money. This amount allows Jio to bid for almost all the spectrum bands simultaneously. It has 32000 eligibility points and points required for new entrant pan‐india (except metros and TN) in 900MHz is 17127, 8716 in 800MHz and 11519 in 2100MHz for 17 circles.

Reliance Jio’s 2015 Mega Spectrum Auction Bid Strategy
It is currently rolling out 4G network on 2300MHz but needs a solid 3G network for both voice and data fall back. We conjecture that Jio will acquire 800MHz spectrum to roll

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