How Akash Ambani is Positioning Jio Mobile Data LTE Offering for 1 Bn Consumers?

Akash Ambani's Jio Mobile Data StrategyReliance Jio Infocomm launch still looks to be a few months away. This has been the ongoing dilemma for the past few years now, and the uncertainty is not helping anyone. Management attributed this to a combination of some more testing to be fully-ready for all data applications, being able to integrate 800MHz, etc.

What is Akash Ambani’s Mobile Broadband Strategy for 1 Billion Consumer Market ?
Jio is basing its approach on poor data speeds and low internet penetration in India, and expectation of high growth over the next 10 years in data traffic, especially video (more…)

Jabong Bid Adieu to Aggressive Discounting, Path to Profitability

Jabong Path to ProfitabilityThe drastic QoQ improvement in Jabong.Com gross margins (900bps) implies that GMV (gross merchandise value) per transaction has improved by 22% to the highest ever even as revenues fell by 8% QoQ. Our reading is that cash-strapped or undingconstrained portals could witness reduction in revenues as they look to monetise the existing customer base with the convenience of range and shipping over pricing.

Jabong’s gross margins (500bps improvement in CY15) seem to indicate that discounting has reduced but operating margin of -49% in CY15 clearly indicates high customer acquisition and retention costs. While discounting on own inventory (more…)

How Reliance Jio will Mitigate Network Quality Issues with 800 Band Spectrum ?

Reliance Jio Launch DelayedAkash Ambani led Reliance Jio Infocomm has created the required hype and expectations for a High Speed 4G Mobile broadband. However, like any other Telco, Reliance Jio has its share of woes to stabilize and achieve network coverage with the spectrum band its is operating in 2300Mhz and 1800Mhz thus pushing the big bang nation wide launch further ahead. In this backdrop, Jio’s boss Mukesh has smartly shed his ego and shook hands with his estranged brother Anil Ambani’s Reliance Communications which owns 800Mhz spectrum, the best suite for 4G-LTE services.

Jio will manage launch well before December 2016 (more…)

Airtel 4G LTE PAN India Spectrum Complete, May Skip 700Mhz Auction

Airtel 4G LTE PAN India SpectrumIndia’s Largest Telecom Operator, Airtel has acquired 2300MHz in 8 Circles from Aircel to complete Pan India 4G-LTE Footprint by virtue of combination of 1800Mhz and 2300Mhz contiguous spectrum blocks.

The acquisition of spectrum in three circles has been done at a total consideration of INR35bn (~4% of current net debt at the company). Aircel had paid INR 34bn for this spectrum in the 2010 auction, which implies a 47% premium that Bharti has paid when adjusted for residual life. The same spectrum has a reserve price of INR 44bn in the upcoming auction, so Bharti has only paid a 14% premium when adjusted for residual life vs this. The impending entry of Reliance Jio has (more…)

State of 4G LTE Device Eco-System in India

4G EcoSystem IndiaSmartphone adoption in India is increasing at a fast pace driven largely by device affordability and increasing relevance of devices in day-to-day lives. At the same time, mass adoption of 4G in the rest of the Asia Pacific region has led to steep fall in price of LTE components and consequently LTE devices. The two factors combined with the Indian telcos’ accelerated 4G launches, are driving radical changes in the Indian smartphone market.

Around 42% of all mobile phones shipped into India in CY2015 were smartphones as compared to 10.8% in CY2011; during the same period (CY2011-15), total smartphone shipments grew at a CAGR of more than 50% (source: Gartner). 4G devices are also increasingly (more…)