Archive for 'mobile' Category
Wireless Revenues – BSNL + RCom’s Loss = Idea + Vodafone Gain
With the cannibalization of the Wireless SIM Cards in India, the number of connections at 664 Mn is a mere number and what matters most is the Wireless Revenue Market Share. Over the past 2 years, Government owned BSNL is the Biggest Loser followed by Reliance Communications. Idea Cellular, Voadafone India and New Operators have increased their market share.
The following Chart Shows the Latest Revenue Market Share of Mobile Operators in India. Read the rest of this entry »
Myths and Realities of Wireless Industry
We would like to highlight the Myths and Realities in the Indian Wireless Industry.
New entrants too focused on rural areas – DoCoMo witnessed the highest jump in proportion of subs coming from rural areas (11% in last two quarters) though still remains low overall (20% v/s 33% avg). Even Uninor, albeit on a small base, has a relatively high rural proportion at 34%. Both Bharti and Idea are at ~37% with even Vodafone at 36% despite its perception of being “urban centric.”
Post-paid tariffs are currently 40% higher than pre-paid tariffs – Post-paid rev/min, which was similar to pre-paid Read the rest of this entry »
Review of Bharti’s Airtel App Central Performance
In-line with Global Practices, App stores offered globally by handset and platform vendors, telecom operators and others, Bharti’s Airtel App Central was launched in Feb-10. Airtel Claims 2.5MM downloads in first month, 13MM in four months. Most apps downloaded are free (80-90% globally) .Small revenue opportunity for app store host as typically 70% share goes to the developer. We are of the opinion that Applications and other content to become conduit of advertising and we disapprove higher telecom operator market share to deter the spirit of Innovative Developers.
With reference to Advertising on Apps Platform, Airtel is of the opinion that Advertiser interest is increasing. Consumer reaction turning more positive: Ericsson survey found that consumers were receptive to m-advertising if relevance was considered. Handset vendor, telcos, equipment vendor, other service providers interest increasing: iAd platform, Nokia’s proximity SMS, Google-AdMob, etc In the context of Advertising supported model, we believe Read the rest of this entry »
Wireless Data + VoIP Usage to Explode
Data traffic the world over has increased at a dramatic pace in the last 3 years, and is set to maintain its momentum for the next five years, as per studies by Cisco.
In India too, this is likely to happen, and through a variety of applications, which may or may not have easily monetizable business
models. We are less concerned about the specifics of any application. What concerns us more is that over time, data traffic will grow rapidly in India, and the greater data-friendly spectrum holding of RIL, who has won BWA spectrum on a pan-India basis and some other telcos will expose the limitation of the spectrum held by GSM incumbents. Read the rest of this entry »
Microsoft Kin + Courier + Fails – Hopes on Windows 7 Phone
Microsoft’s overhyped and overestimated Social Phone concept has failed miserably in the market. Microsoft has been slow in responding to the mega-trends in Pervasive Computing and 3 (or more) screen strategies from network operators. We see this as a worrying signal for management execution capability in the Entertainment & Devices segment.
Other Microsoft forays into the consumer mainstream markets, including the Zune, have also been underwhelming. Media sources have also recently cited that Microsoft has dropped its dual-screen tablet skunk project “Courier”, a product that we felt would have had good potential if the execution was there. Adding to Microsoft’s Woes, network operators are not allocating significant SKUs to Read the rest of this entry »
COAI spreads the ante against TRAI’s 2G Spectrum
COAI the powerful GSM Operators controlling over 61% of the Indian Mobile Subscribers have spread their ante further against TRAI’s 2G Spectrum recommendation.
COAI’s Director General – Mr. Rajan Mehta told Analysts that,
3G prices are not a true indicator of market price of spectrum. [Recall, TRAI proposals released on 11 May10 recommended pricing of 2G spectrum to be linked to 3G auction winning prices. 3G bids were not a true indicator of market price due to the "artificial scarcity" created by the government.]
COAI believes spectrum allocation should not be linked to network rollout. Proper utilization of USOF may help reduce the divide between rural and urban areas.
While M&A guidelines restrict licensees from making windfall profits, there is a need to change regulations in favour of consolidation as the cap on spectrum after M&A is deterrent to consolidation. Read the rest of this entry »
Wireless Connections Reach 611 Million
The Indian Wireless industry continued to grow in May-2010, albeit with lesser momentum though. Wireless Connections Topped 611 mn at the end of May-2010.
This implies penetration of 52% compared with 57% in China (Mar-10). However, reported sub base for India is inflated due to higher incidence of multi-SIM ownership driven by low connection fees, intense competition and proliferation of low cost dual-SIM phones in India. Assuming 25% of Indian sub base owns two SIM cards, true wireless penetration in India is about 40%, which clearly suggests that there is room for further growth.
The following chart shows Mobile Operators Connections Market share in India at the end of May-2010. Read the rest of this entry »
Bharti Airtel Africa plans to collaborate on network expansion
Bharti Airtel known for innovative business models in running wireless Operations is planning to join hands with other tier-2 telecom operators in Africa (where it acquired Zain’s operations) to share each other’s radio access networks. If true, this would be directionally positive, enabling Bharti to (1) expand its network more rapidly (removing a current competitive disadvantage) and (2) lower its capex and opex. No additional details were provided.
Is Active Infrastructure / Radio Access Network Sharing Positive / Negative ?
Radio Accesses Network sharing has often been considered a double-edged sword. On the one hand, it allows for capex and opex Read the rest of this entry »