Reliance Jio 4G LTE / Small Cell Deployment indicate Mobile Data Pricing at 50% Discount to Airtel

Jio 4G LTE Small Cell DeploymentDue to increased demand in urban areas, a majority of the data rollout is happening through Small Cells. Compared to BTS, small cells costs 30% less to Huawei; however, small cells are selling at the same price vs BTS of nearly INR 1.0-1.2mn, including ancillary cost, due to higher demand. Small cells provide one-third of coverage compared to BTS but due to lower space requirements, they suit the urban network rollout.

Reliance Jio’s network investment and spectrum holdings provide it significantly higher capacity than existing operators, thereby allowing Jio to reduce data rates/MB to less than 50% of the current market pricing led by Airtel. The company’s investments are long term in nature, and not much in the way for short-term

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Can Reliance Jio 4G-LTE Pricing be Irrational to Disrupt Market ?

Billions of dollars of capital already employed with another few perhaps waiting in the wings to be deployed in the upcoming mega battle for market share—is there even an argument that Reliance Jio Infocomm would not destroy any sense of sanity and value-creation possibility in the Indian telecom industry ?

We believe there is more than an argument, if one were to (rationally) assume that R-Jio intends to have a business case at some point with that ‘some point’ being within a reasonable timeframe. One needs to appreciate that wireless business cases in India to be viewed as a series of 20-year projects given the naked reality of large spectrum renewal. Our expectation of ‘P&L rationality’ from R-Jio ironically flows from the very fact that it has deployed billions of dollars in the business. Large balance sheets need large P&Ls to support a business case and large P&Ls need a certain (large) market size

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

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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Why Airtel’s 4G Tariff Converge with 3G in some Circles ?

In circles where Airtel offers 4G services, it now offers 4G-LTE data at the same tariff as 3G (in some higher-end dongle plans 4G is even cheaper than 3G). We believe this is a significant event in the life cycle of 3G in India. While we are yet to see any operator launch 4G on 1800 MHz, if the pricing here is the same as on 4G on 2300 MHz (very likely), we foresee a situation where 3G networks will be competing against newer networks of far superior capability (on speed, coverage and cost).

How Profitable is 3G Data Service as an Incremental Offering in India ?
While world over the experience on data profitability is not clear, Indian telcos have consistently claimed that the data business

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What are Essential 4G-LTE Patents and FRAND Practices ?

Essential LTE PatentsFrom a technical standpoint, an essential LTE patent is a patent that relates directly to technology that is strictly required to meet the technical specifications of the LTE standards. This can differ from commercial standpoint of what an essential LTE patent is, as many a times technologies and procedures that are not strictly defined in the LTE standards and specifications are unavoidable in the development and manufacture of an LTE-related product. For example, components of 2G/3G communications technology may not be defined in 4G LTE standards but from a practical standpoint would be required in next-generation devices since much of the new

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Korea Leads in Global 4G / LTEvolution & Data Consumption

Korea Leads the Global LTEvolution4G LTE has led to a big jump in data consumption behaviour as shown in Figure 3, with Korea leading the global curve with ~1 GB/month and ~1.8 GB/month of data usage in 2011 & 2012, respectively, versus the global average of 342 MB/month and 1.3 GB/month. The Cisco Visual Networking Index is forecasting a 30.8% CAGR for 2012-17 in average global traffic per device with smartphones accounting for ~70% of data traffic by 2017.

LTE ARPU lies in its tiered data plans. Unlike Korea’s 3G

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4G LTE to Account for Over $1 trillion in Revenues over 5 Years

According to Juniper Research, 4G LTE mobile broadband service revenues over the next five years will account for over $1 trillion, representing approximately 17% of the cumulative operator billed service revenue from all mobile services. Nitin Bhas in the Report says, Along with the 4G network roll-out, the 4G/Wi-Fi combination will continue to provide a … Read more

Japanese Telcos Encourage Customers to Migrate to 4G / LTE

4G LTE Phones in JapanThe Japan telecom sector has continued to outperform over the past few months mainly because of 1) firm results driven by smartphone expansion, 2) declining concern about price wars as mobile operators encouraged their users to migrate to LTE with higher tariff offerings, and 3) the inflow of funds into domestic defensive stocks. In particular, Softbank and KDDI showed stronger share price performance due to good fundamentals and increasing expectations for iPhone5, which would accelerate their subscriber acquisition pace/market share gain.

LTE with higher tariff and more efficient network will be positive

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