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"The pricing is unsustainable. 1GB a day (of data) for that price (Rs 309) is pretty low. It is better than zero (free services)" – Sunil Mittal, Chairman, Bharti Enterprises

How Airtel and Idea differ with Jio on Promotional Offers and  Predatory Pricing ?

Airtel - Promotions shouldn't exceed 90 days. IUC compliance should be seen as a driving factor. Offers below IUC cost must be
considered as instances of predatory pricing.

Idea Cellular - Promotions should comply with TRAI's principles of IUC and must cover the same. No promotions should be allowed at rates lower than IUC cost.

Jio - For effective competition promotional offers must be permitted. This is also crucial to drive adoption of new technologies. Adoption of newer technologies, convergence of networks and services mean that there are many services that can be offered free of cost. The regulator doesn't need to scrutinise the industry on this matter. Price forbearance is the best option.
3G / HSPA / How Airtel + Idea differ with Jio on Non-discriminatory tariffs
« Last post by wiredlife on June 28, 2017, 06:40:53 AM »
Airtel - In a 'calling party pays' regime, IUC compliance is vital as telcos can use competitors' networks and resort to predatory/below-IUC pricing.

Idea - Tariff review incomplete without reviewing the issue of IUC compliance 4G customers must be treated as a separate class from 2G/3G customers as 4G is more efficient than 2G/3G and allows operators to provide much more benefits than 2G/3G. Incentivisation of 4G handset upgrades should be seen positively.
Jio - More transparency is needed. No custom offers should be permitted.
Web 2.0 / Why Public Cloud is Critical for Microsoft ?
« Last post by wiredlife on June 27, 2017, 12:16:15 PM »
Microsoft's portfolio of public cloud products is critical to its success, and we are impressed with early inroads, in particular in Office 365, which we believe enables enterprises and SMBs to cut back on email administrator costs. The natural outcome of public cloud competition is public cloud commoditization; therefore we feel Microsoft will need to differentiate itself from Amazon’s AWS by moving up the stack and  providing value-add cloud software applications.

Microsoft's potential opportunities in the public cloud space with Office 365 and Azure, and note an improved capital allocation policy

SaaS Bundle with LinkedIn
Given the acquisition of LinkedIn in June of 2016, Microsoft may need to invest in incremental products to round out its application portfolio of Dynamics products that are cloud-enabled, or do smaller tuck-in acquisitions to strengthen its enterprise apps portfolio, which outside of Office has failed to meaningfully grow organically in a highly competitive end market. However, we view the move into  the SaaS application layer as a long-term positive trend, which is supportive of stickier customers and ultimately higher margins.

EVDO / Wi-Fi / Broadband Subscriber Base at 284 Mn
« Last post by wiredlife on June 27, 2017, 12:12:16 PM »
TRAI reported 284mn broadband subscribers (speed of 512kbps and above) end of April-2017. The breakup is as follows.

Reliance Jio 40%
Airtel 18%
Vodafone 14%
Idea 8%
Others 12%

4G / LTE / Will Jio Move Disruption to Voice Market ?
« Last post by wiredlife on June 21, 2017, 08:12:56 AM »
The key question facing the sector will be pick up in sector revenue growth, which in our view is likely once Jio stabilizes with c110-120m paying subscribers. We add that at present Jio’s market share is constrained by a limited 4G ecosystem and it is possible that Jio may try to address this by launching a 4G feature phone. Such a launch would likely see some tariff pressure, as such stability in 1Q revenues may not help, and we may not get a better picture of sector revenue growth prospects in FY18 until 2QFY18e.

We note that one more driver for sector revenue is likely to be an upgrade by pure voice subscribers to bundled plans, however any upside may be capped if Jio's 4G feature phone launch is combined with more disruptive pricing action.
SmartPhones & Apps / User Engagement Rises with Smartphone Screen Size
« Last post by wiredlife on June 19, 2017, 11:14:50 PM »
As smartphone screen size increases, a greater percentage of people start engaging more fully in varied online activities. Survey evidence showed that a higher proportion of users with >5" screen sizes performed more varied online activities than those with phone screens smaller than 5". The activities that showed the greatest upturn were gaming, payments, shopping, and music/video downloads.

Survey evidence also showed that an increase of at least 20%-50ppt in the percentage of people who were spending over 30 minutes on various online activities using smartphones with screen size >5" vs. those who were using smartphones with screen size of 4-5 inches.
This shows not only that greater percentage of people use smartphones for performing various activities but also that a greater percentage of people spend more time with smartphones having larger screens.

In 2016, shipments of phones with >5" screen size constituted 67% of total smartphone shipments in India
3G / HSPA / Idea's 3G/4G Data Consumption Vs Revenue Alarming in Jio Effect
« Last post by wiredlife on June 19, 2017, 10:54:00 PM »
For Idea Cellular, 3G / 4G Data fared much worse than voice with data revenue declining 15% Q/Q and 22% Y/Y) and voice declining to a lesser extent (3.2% decline Q/Q, 10.2% Y/Y). Surprisingly, data ARPU did not decline Q/Q despite such a sharp data revenue decline (possibly, because Idea suffered a significant decline in its data sub base)

Consumption-related metrics jumped sequentially for both voice and data, especially for data (with data volumes up 16.7% and per user data usage jumping 36.7% Q/Q). But given the sharp data pricing fall (27.7% Q/Q) and halving Y/Y, it did not help revenue performance. This is the main point we’ve been highlighting for some time – pointing to significant volume (consumption) jumps as proof of positive elasticity does not make sense when this is accompanied by sharp pricing cuts.

Ultimately, we focus on data ARPU, data revenues, data revenue added and data revenue growth. It is very much possible to show volume expansion and robust data sub-adds in data taking steep price cuts.
EVDO / Wi-Fi / How Jio is dependent on Reliance Communications ?
« Last post by wiredlife on June 19, 2017, 10:44:22 PM »
RCOM's current operating challenges could impact Jio in the medium term.

In addition to leasing towers and fiber from RCOM, Jio has a spectrum-sharing deal in the high-value 800MHz band. Our analysis of spectrum holdings suggests that the sharing deal is crucial in six high-value markets where Jio holds less than the 5MHz spectrum which is the minimum required bandwidth of its LTE network. These markets collectively account of c.45% of industry revenues.

Furthermore, RCOM's 43K towers account for c.40% of Jio network sites. RCOM's fiber network also provides the significant backhaul capacity which has been a key competitive lever as it has allowed Jio to provide large data bundles to attract subscribers.
Web 2.0 / Yatra's multi-channel disctribution / sales platform
« Last post by wiredlife on June 19, 2017, 10:36:18 PM »
Yatra has a multi-channel platform to access different markets and to allow cross-selling

B2C – Consumers can book travel on the website or the Yatra mobile app, with support from a multi-lingual call centre. Yatra has had 5.2m customers since 2006.

B2E – Companies with a total of 1.4m employees use Yatra Corporate to book and manage corporate travel. While net revenue margins are lower in the B2E segment, marketing spend is lower, and so the segment is more profitable than B2B.

B2B2C – reaching consumers in smaller markets is hard, so Yatra processes bookings for over 17,000 travel agents (and growing) who are mostly in Tier 2 and 3 cities.

Yatra’s acquisitions include ticket consolidator TSI in 2010, hotel aggregator MagicRooms in 2012, event portal Buzzingtown in 2012, and hotel network TravelGuru in 2012.
Web 2.0 / Taobao/Tmall/ - Customer Metrics
« Last post by wiredlife on June 19, 2017, 10:32:19 PM »
As per management, via providing value for brands/merchants in online/offline sales, brand marketing, customer acquisition/engagement and productivity improvement, Alibaba now generates revenue from the distribution, brand marketing, customer service budget pool of brands/merchants, compared to transaction-only budget pool in the past.

Management discussed that Tmall GMV accelerated to 40% in the current quarter to date on YoY basis as more brands adopt Alibaba's databank to explore non-transaction initiatives (i.e. Market research, brand recognition, interest formation, loyalty program, etc).

Management also shares several metrics in user cohort. For example, consumers that have registered for 5 years averagely place 123 orders/purchased 24 categories/spend ~Rmb 12k per year, compared to 38 orders/9 categories/~Rmb 3k of first year registered users.

Change in Strategy
Meanwhile, the company will also change the term of online marketing revenue to customer management revenue to reflect Alibaba’s value position in helping merchants/brands to acquire, engage and retain customers.
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