India 4G Road map - Invest in On mobile Global with long Term Horizon

On mobile Global is one of the major players in Indian Mobile VAS ecosystem with strong presence across different geographies. Post MVAS regulation implementation in India during 2011-12, most of the Mobile Value Added Company underwent major shock wave and tried hard to cover themselves from direct and indirect impact. The Listed On mobile Global equity price went through major hammering. Investor also lost their confidence in Company Compliance which led to major CXO level exist.

On mobile Global during 2014, called as major laggard in Indian equity market when its price even went to INR 28 to 29 ranges. By Early 2015, management started putting all the building blocks of their product line and kept their focus on Ring back tone which helped them to gain Telephonic business in Europe to Americas whereas gain business from Airtel Africa unit. Management also managed to sell non performing business unit and invested the same in data centric business to offer data centric service, platform to B2B and B2C. It is expected that their investment in content procurement is going to bring fruit with the higher adoption by end consumer post data price war start between Incumbent Mobile Service Provider and Reliance Jio.

The equity price started recovering and by the end of 2015, On mobile Global equity gave excellent return to its investors. Currently the equity price is hovering between INR 115 to INR 124 and company is relying heavily on fully fledged adoption of 4G network by the end user. Most of On mobile global competitor changed their strategy and moved into the Application segment whereas On mobile global invested heavily on the platform side which kept their differentiation in the marketplace.

In my point of view, the dividend paying company as well as active share buyback on regular interval helped On mobile global to regain their investor confidence. I will not be surprised in a scenario, On mobile give further 50% return in next 12 month given the dynamics of Telecom sector in geographies they are operating.

In my point of view, retail investor should think of buying the equity on delivery basis rather than F&O basis to be on the safer side.

Disclaimer; I invested in Onmobile Global and advise reader or potential investor's to consult their financial advisor before investing

Indian Wireless MVAS Activation Experiencing Negative Growth – No Place To Hide

Indian MVAS sector experienced major roadblock post MVAS regulation enforcement by TRAI. The purpose of TRAI was to control MVAS centric complaint. The growth of MVAS attracted many service providers to launch slew of MVAS products with loosely coupled consumer management. The lack of QoS attached with product monitoring on the delivery, billing, activation and deactivation pushed consumer and prosumer initiated complaint against service providers for billing and deactivation issues. The MVAS regulation enforcement started impacting MVAS revenue and in FY 12-13, Indian wireless operator experienced MVAS revenue share going down from by 2% point. The second wave of amendment by TRAI which included double consent and subsequent enforcement of the same drastically impacted MVAS service activation. As per TRAI report, MVAS activation falls down from monthly 69million in June 2013 to 29.8 & 27.65 million in July & Aug, 2013 respectively. The unprecedented MoM fall of MVAS activation de-growth of 58% & 7% respectively indicate nothing but serious danger poised to explode. It is evident that Indian wireless operator for just concluded July-Sept 2013 will experience huge fall in MVAS revenue and thus low or nil overall revenue growth. In my point of view, the MVAS solution providers must focus on innovation vs. replication to offer cost effective product line ups.