How Many More 3G Operators can be Accommodated in 900Mhz Spectrum Band ?

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Contiguity is the key factor for the launch of 3G services and a minimum requirement for a successful rollout. We look at availability of extra spectrum across the circles (including surrender of spectrum from BSNL) and the corresponding contiguous blocks.

We note that in six of the 18 circles, there is a creation of an additional block of 5Mhz thereby allowing each of the top-three operators to gain presence in the market. On the contrary, in other circles, for example in Madhya Pradesh, either of the top-three is capable of winning, while

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Why Xiamoi Buying Stake in iQiyi and Youku ?

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Android device maker Xiaomi is considering taking a stake both in Baidu’s online video subsidiary iQiyi and in Alibaba-invested online video site operator Youku Tudou. Earlier this month on its official Weibo account, Xiaomi announced that it plans to invest US$1bn in online video content to support its smart television ecosystem. We expect Xiaomi to invest about US$300m in iQiyi to become the second largest shareholder and an US$ 8-digit figure in Youku Tudou in the secondary market.

A partnership with iQiyi and Youku Tudou will

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China Mobile Commerce Hits $37 Bn up 251% YoY

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China Mobile PaymentsMobile commerce has been an area of intense focus in recent years. According to a recently published report by iResearch, China mobile commerce reached USD 37 Billion in 3Q2014, surpassing overall ecommerce growth of ~50%YoY over the same period. During the quarter, mobile GMV accounted for ~33.4% of total online shopping GMV, some 2.8ppt higher than that in 2Q14. We attribute the robust growth in mobile commerce mainly to a growing profusion of mobile devices in China and an accompanying rapid evolution in buying behaviors. We envision an ever-growing mobile

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MakeMyTrip Air Ticketing Strengthens, Structural Growth Story Intact

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MakeMyTripMakeMyTrip [MMYT] asserts its focus on growing its Hotels & Packages (H&P) business by spearheading online shift & mobile platform adoption. It is cementing leadership here. Robust air traffic driven by discounting of airfares surprised positively for MMYT’s Air business.

MakeMyTrip gained market share in domestic air ticketing business increasing it from about a steady 12% for the last several quarters to around 13%+ in Sep-14 quarter. To provide context, MMYT delivered a solid Sep-14 quarter with air ticketing revenues (less service cost) of US$18.4 million in revenues i.e., 20% Y/Y (and 10.7% Q/Q) revenue growth. Management suggests that revenue per booking is low primarily because of discounted ticket prices. But there is little correlation between revenue per transaction and air ticketing margins as margins in

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Apple Pay Heats the Race for Mobile Payments

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Apple Pay Heats mPayment RaceNon innovators in the Business are giving Apple run for its money in Mobile Payment by Lobbying. Apple Pay’s impact on the payments world in the US and internationally has been felt in the Silicon valley where PayPal was separated from Ebay and in Emerging Markets where are we likely to see m-Pesa -like disruptions.

Apple’s mobile wallet Apple Pay is one of the 200+ digital wallets in the market. Most mobile wallets ventures have been unsuccessful because consumers and merchants are conservative in payment behavior. Apple Pay is likely to more successful than rival digital wallets as it (1) has a critical mass of partners across the payment value chain, including card networks, issuers, processors and merchants, (2) critical mass of US smart phone market (c40%), and (3) they should be

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What Business is Nokia Focused after SmartPhone Spinoff ?

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New Nokia Business UnitsPost the sale of Nokia’s Devices(Mobile & SmartPhone) business to Microsoft, Finnish-based Nokia is targeting network infrastructure (Networks), location / maps (HERE) and intellectual property monetisation / advanced technology development (Technologies).

Going forward the Networks business will represent c.85%-90% of sales and comprise two reporting segments – Mobile Broadband (mobile operator radio and core network hardware / software) and Global Services (network implementation, managed services, customer

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Bharti Infratel Riding Reliance Jio Network Expansion

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Bharti Infratel TowersBharti Infratel [Telecom Tower & Infrastructure Company] together with Indus towers, has been gaining market share. Bulk of tenancy additions during the quarter came from data networks (by definition, this excludes the 3G loading sites which do not contribute to the tenancy number). This suggests that a decent amount of new 3G/4G site demand is coming up already (as against the expectation of 3G loading continuing on existing 2G locations continuing). Reliance Jio contributed significantly to qoq surge in additions reported by Bharti Infratel standalone [agreement with Indus signed end of 2Q]. However, strong 2Q volume growth did not translate into commensurate rev growth given late quarter tenancy pick up.

Bharti Infratel Fiber Backhaul
Mgmt said that Under its current IP-1 license, BIL / Indus are allowed to deploy only dark fiber, but to run active fiber business, it would have to come under current licensing regime that would result in 8% license fee payment to government. The differences between tower business and fibre business in terms of the pace of technological change, duration of contracts and pricing, that have forced the company to deliberate more on fibre business opportunity. Mgmt. acknowledged the need for fibre in the country given expected data growth, and therefore it would be looking at this opportunity much more

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Wearable Tech Taking Off – Garmin Connect App Sees Increased Adoption

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Wearable Computing Picks UpAccording to App Annie’s report “Spotlight on connected devices: Welcome to your wired life” the top five Health and Fitness apps for connected devices collectively grew over 2.3x in monthly downloads since August 2013.

As of August 2014, the Garmin Connect app is the #3 Health and Fitness app for connected devices, behind the Fitbit app and the Up by Jawbone app, and ahead of the Nike+ Fuelband app. We believe this implies

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Which Way will India Go 3G or 4G-LTE ?

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India Mobile Data 3G 4GDespite growth takeoff, 3G penetration is merely 7-10% of the existing mobile subscriber base in India. One key deterrent to a broad based data adoption has been expensive 3G handsets. With the launch of Android One the USD 100 handset segment has seen more depth. With the availability of low-cost 3G smartphones, existing subscribers are unlikely to continue using 2G feature phones, opting instead to make the switch to 3G smartphones; in this respect, the trends over the last six months have been very encouraging. We believe the trend will now change in favour of low cost smartphones versus feature phones.

Furthermore 3G coverage is expected to improve; more so as incumbent telcos gear up to contest 4G launch by Reliance Jio. Given this first positive

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How Paypal Makes Money after Spin off from eBay ?

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How PayPal Makes MoneyNot many of you all have an understanding on how eBay’s PayPal segment makes money (sources of revenue, the fees (take rates) by segment, the impact of geographic mix, the impact of P2P on take rate, etc.). This issue will become increasingly important, as investors focus in on the potential impact of the proposed split of eBay and PayPal and the value and mechanics of the two businesses.

eBay’s Payments segment revenue can be split into 3 main categories – on eBay, Merchant Services (off eBay) and Person-to- Person (P2P). At a high level, it is estimated that eBay Transaction Volume of $61.1bn in CY14 and Transaction Rev at $3.1bn, with an avg. transaction fee of 5.1%. We estimate

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