Adoption Pattern Analytics Are Driving Few Application Companies Valuation

As all must be aware that WhatsApp or any other messaging Apps are not free or nominal fee post one year should not be considered as low cost but being a user, you are generating Hundreds of $ for messaging and other apps. All users know that it’s mandatory for user to provide their information before getting the full fledged Applications or messaging applications.

Indian users generally opt for such services or product which is free with a perception that “if I don’t like then will delete the specific Application”. These Applications developers are in the business of collecting contextual data and offer additional services or do collaboration with other companies to cash down the collected contextual data.

More interesting, many of such companies don’t have any understanding about Indian user ecosystem but interested in just collecting data and to some extent violating Indian regulation. It is correct that such Applications companies may get high valuation because of user information instead of Application features. Recent rush of e-Retailer and brands looking for targeting marketing added fuel.

One should not be surprised that by July 2014, many Application providers offering free services and in the business of collecting contextual information would look for shelter. Many investors would also be facing risk of losing their investment.

MVAS Activation Hits Lowest Level – What about User Initiated MVAS Deactivation

The concern of MVAS service providers in recent month is falling MVAS adoption by subscribers due to regulatory enforcement of Consent Gateway. In TRAI released report, the MVAS activation fell from 69 million in June 2013 to 27.65 million in August 2013 end. It represent 40% fall in MVAS activation and service providers are blaming squarely on Consent Gateway regulatory enforcement.

TRAI released report does not indicate any deactivation initiated by subscriber by calling service providers customer care number or network agnostic TollFree number of 155223 for MVAS activation/deactivation

Indian print media on multiple occasions highlighted the unwarranted MVAS billing challenges faced by users especially rural based. It is also interesting to know that most of the common subscribers are not aware of deactivation TollFree number and faces many hurdles in getting their MVAS centric concerns registered with their serving wireless service providers.

TRAI should also release user initiated MVAS deactivation request to highlight the un-highlighted concerns of subscribers. The drastic fall in monthly MVAS activation is nothing but validation that everything is not fine with MVAS service delivery and Billing. TRAI should also come out with another amendment on MVAS in which the ecosystem players must allocate part of total generated MVAS towards the awareness of mobility subscriber.

It is widely expected that TRAI tentative next move may act as trigger for the consolidation in Indian MVAS ecosystem as well as differentiator for many mobile operators.

Continuous Downfall In MVAS Complaint And Billing Without Subscriber Consent – Far From Reality

The Indian Telecom Sector is experiencing regulations compliance deadline followed by regulation amendments. Telecom Regulatory Authority of India (TRAI) swing into action from 2010 to achieve higher protection and flexibility for subscriber. The intention was to create competitive environment through MNP, MVAS regulation and in-turn enforce better customer interaction management by wireless service provider. The broader vision was to enable subscriber choose their services or product or applications or even wireless operator.

During consultation processes with TRAI, most of the MVAS companies supported wireless operators to maintain the same mechanism running at that point of time instead of proposing new mechanism in order to protect their own interest too. The MVAS companies fall in the same cubical of wireless due to the fear factor of wireless service provider’s backlash in case of other way than network providers. The successful compliance by wireless service providers immediately opened new challenges for MVAS companies. MVAS companies started showing vulnerability in converting their service offering into paid service in MVAS regulatory environment of user initiated service request compared to network initiated service ennoblement.

Even after MVAS regulatory enforcement by TRAI, huge number of subscriber’s complaint to regulator regarding clear flaunting of processes by many MVAS players triggered another amendment. The regulatory amendment enforcing consent gateway implementation as must have clause for both Off Net and On Net players in order to continue their services. It opened the can of worms around malpractices in MVAS domain.

Recently, TRAI released report indicating fall in subscriber complaint post enforcement of consent gateway regulatory amendments. Regulatory bodies tried to take credit of subscriber pain point removal. The total number of MVAS complaint experienced dramatic fall from 259476 in June to 95510 in August 2013 whereas the MVAS billing without consent from subscriber in the said month also came down from 104996 to 9338. TRAI tried to claim that their initiatives improved overall QoS of MVAS as well as Billing without consent vs. Complaint ratio came down from 40.46% in June 2013 to 9.77% in August 2013.

It raises many queries such as initiatives to develop awareness within subscriber community by regulatory bodies, MVAS Service Providers and other ecosystem players. All TRAI claim is based on the number given by the service providers which service providers receive on their customer service Toll Free numbers. It is also interesting to note that many subscribers who try to launch their complaint on service providers customer care fails to receive the complaint ticket number.

Also how many Indian subscribers know their right about new activation, renewal, billing rollback, complaint and many more. The above number clearly indicates that less than 0.04% of the covered subscriber base of 700 million by TRAI is only facing issues around MVAS which is hard to digest. In a scenario, TRAI as well as wireless service provider initiate nationwide drive through print and TVC, the number would increase multi fold.

Indian Regulatory Impact On Content Mobilization Delivery and Digital Revolution

The exponential growth of Media and Entertainment attracted ICT ecosystem players to define, refine and correlate their delivery mechanism to tap into $10Bn yearly TAM (Source: PwC). It also attracted many new players with innovative product offerings to consumer’s/prosumer’s and agnostic to   Network, Platforms and Devices. The pre-requisite to seamless content delivery must fulfill 5C’s mechanism such as:-

1. Content: Content must be of high quality and should be self compatible to underline network support
2. Context: The platform must have the capabilities to capture device initiated consumer/prosumer access and delivery trend in order to define, refine device generated user data and accordingly create personalized service for requesting device.
3. Collaboration: The collaboration tools must support all underline regulatory and standardization process in order to support device, platform and network under different delivery mechanism
4. Commerce: The heart of content commercialization must be supported with delivery mechanism for seamless request and response delivery of content on connected devices
5. Connectivity: With the revolution of Telecom attached devices under different delivery network, it is must have high data rate (actual instead of raw) support to offer unique content experience in high resolution/ frame based devices.

The above 5C’s can be achieved through combination of Service Delivery Platform with sub content delivery network and attached billing mechanism. It would enable consumers and prosumer’s to use single content across connected wired and wireless devices.

Connected device being the central ecosystem in media and entertainment segment, the adoption lies in Download Speed, Quality, Compression, Storage and Security. Today’s consumer’s/prosumer’s today likes to buy content using WEB but at the second moment wants to port in on its wireless device and that brings IP QoS and Wired QoS KPI’s.

The above mechanisms are attracting lots of focus but at the same time, the missed point is “Security in connected device environment and impact of Regulatory moves on adoption”.

With the growing adoption of Media and Entertainment centric content indirectly forced all delivery networks to enhance their platform to support enhanced security as content is the easiest way to push malware on devices. The converged Mobile OS of today’s Smartphone support the entire format which is also the part of PC and Laptop.

In the last 4 years, Indian Regulatory Authority, Ministry of Home Affairs, Intelligence Bodies, Reserve Bank of India and many other regulatory bodies started pushing their own regulation to mitigate any threat on government and non-government installation. Even after the regulation, many ministries, research installations, BFSI sector and others got major hit with hacking. Post Consolidated review, TRAI initiated multiple regulations such as

1.    MNP regulation: From the top, it looks like that it was meant for consumers maintaining single MSISDN and not happy with serving wireless operator whereas it also carried other sub-clauses which is worth noting

a.       All server must be installed in India

b.      None of CLI information can be exported out of Indian geography

c.       O&M team of service must be of Indian Origin and located in India

d.      Lawful agency must be having access to service provider servers

2.       MVAS Regulation: In 2011, MVAS regulation to protect consumer and prosumer from billing, mobile marketing etc, pushed Media and Entertainment companies into tailspin as wireless device owners are major source revenue generator. The next amendment in 2013 regarding Double consent mechanism implementation by 1^stJuly 2013, forced many media and entertainment content companies to suspend their service temporarily in order to be complaint

3.   Telecom Security Policy: The regulators pushed another proposed regulatory policies on security covering Telecom and IT equipment security certification before installing to carry information. On the one hand its very good move but quick process execution is not adhered. Now, Regulators are also talking about putting device OEM’s to take security clearance from DoT on malware free device software.

4.  Cyber Security 2013 Policies: It enforces service providers to implement extensive security functionality such as Content, Application filtering, IPS/IDS, SoC ( Security Operation Center), DoS, DDoS mitigation solution and many more.

The revolution post digitization drive in content creation, delivery and commercialization got trapped into 200 meter hurdle race with above mentioned few of the regulation. All the above can be clubbed into one regulation which would be easy for Media and Entertainment companies to follow and adhere at the same time would offer said companies to use Karbonn Mobile as delivery mechanism to millions of consumer’s and prosumer’s on monthly basis. It would create new seamless process to reduce GTM for content creator to consumer. The consolidation moves by different ministry based regulatory may offer huge kick start to already growing digitized Media and Entertainment through connected device offering from device OEM’s like Karbonn Mobile in seamlessly dynamic and secure manner.

Advertisement Time Capping Impacting Broadcasting Companies – Many May Disappear

Advertisement time Capping: The Broadcasting regulators directives to cap advertisement time to 12 min per hour is going to reduce much needed cash for Broadcaster to cover their cost. Post big Broadcasting companies withdrawing their petition from TDSAT against regulatory move, it is evident that small players may find it difficulties to have sustainable business model. The regional broadcasters are important ecosystem players are they focus deep in rural sectors and offer huge repository of cash rich content across multiple delivery network. Analysts are predicting that big players will be successful in increase prime time ad tariff whereas regional players due to their geographical positioning may find it difficult to increase ad tariff. With more than 500 broadcasting companies, the intended regulation is going to initiate consolidation process and big player would be the beneficial to get even bigger. In the current economical environment, the move is not going to impact the industry but also millions of attached resources. Regulators must think twice to enforce the proposed regulation to trigger consolidation process as handling large sharks are always tough and examples are in front of us, such as Time Warner, News Corporation.

IBM Commit $1Bn For Linux Based Power System Servers

In major push, IBM announced $1bn investment to develop Power system server using enhanced Linux and open source technologies. It would offer potential clients to leverage on big data and cloud computing using differentiated application arrays attached with data center. IBM also announced new Client center which would based out of Europe and rapidly growing Linux based power ecosystem oriented Power development cloud.