Reliance Jio Mobile Handset / Wireless Distributor Business

Reliance Jio HandsetsReliance Jio Infocomm has 1,071 centres across the country with 35 in Mumbai alone. They will sell handsets as well as wireless services. The distribution network for handset and services are separate. Wireless services are 4x of Reliance centres, i.e. ~4,000 distributors whereas handsets are 40% of Reliance centres with 400 distributors.

Jio management aims to Create a healthy handset ecosystem at an attractive price. Currently, RJIO has four series of handsets: Water, Earth, Lyf and Flame; each of them has four (more…)

How eCommerce Impacted Logistics Business in India?

eCommerce Logistics IndiaECom Express is a logistics company catering to the needs of e-commerce industry, which is growing at a fast pace in India. The company was launched in early 2013 focused on providing the last mile delivery services to the eCommerce companies. ECom Express started with 311 employees in 35 cities. It has grown to 653 delivery centers in 180 cities with 15,000 employees and 450,000 Shipments/day. 90% of the staff are delivery people.

Logistics is a relatively large part of cost for eCommerce players and they intend to rationalize it. However, ECom Express believe that the quality of services in terms of timely delivery, reliability and lower product returns are key factors for eCommerce player to select a logistics company and not necessarily pricing. ECom Express is confident that given the quality of its services and its ability to delivery products to even less-accessible areas places it well in the market. The company (more…)

Reliance Jio Launch – Device Strategy Unveiled

Reliance Jio Mobile HandsetsReliance Jio Infocomm is expected to launch with three types of device offerings – 1) Dual SIM smartphones; 2) MiFi device; and 3) Vo-LTE smartphones. Amongst these, a dual SIM smartphone could be the most attractive to a consumer (in the early stages of launch) as they could continue to use their existing telecom providers’ SIM to make voice calls and use Jio’s SIM for access to high-speed data offerings.

RJio’s MiFi devices can be more popular among the niche high usage consumers (particularly youth) and expect it to compete head-on with dongle offerings from companies like RCOM, Tata and MTS. The uptake of Vo-LTE smartphone (which allow Vo-LTE calls) would be contingent on the quality of calls the new network is able to deliver. RJio suggest VoLTE trials have been (more…)

Internet in India – From Access to Transactions

Internet in IndiaIndia had the third largest (243.2mn) number of internet users in the world in 2014. The pace accelerated over 2015 with 375mn user base in October 2015, according to a joint report by internet and Mobile Association of India (IAMAI), an industry body and IMRB, a market research agency. It is projected to reach 402mn, ahead of the US though behind China, by December 2015.

While the base and growth in internet users has been impressive, the penetration rate performance has been tepid relative to that in the US and China. We believe India (more…)

Airtel to Increase ARPU amidst Reliance Jio Launch

Airtel Vs Reliance JioBharti Airtel expects modest annual increases in blended ARPU in coming years led by data (assuming rationality on the part of Reliance Jio). Airtel admits voice ARPUs will continue to dip but does not think cannibalization of voice by high-speed data is a risk, likely underestimating this voice ARPU reduction risk. Airtel thinks that higher ARPU subs (post-paid or high-end pre-paid who would be early 4G adopters) hardly churn and that pricing per se is not a factor in churn at the high-end. Additionally, it is rapidly rolling out 4G on a large scale not giving its high-end 3G/4G subs reason to shift to competition. Data traffic will continue to grow at a robust pace driven by increases in penetration and per sub consumption growth. Better data network and newer technologies (such as 4G) itself allows higher consumption on a like-for-like basis.

Plain Vanilla 2G Voice
On the contrary, incrementally new subs are coming from low-ARPU rural areas, total voice ARPU will likely continue to trend down. Urban wireless penetration (more…)

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