Showing posts with label Idea. Show all posts
Showing posts with label Idea. Show all posts

India 4G User Acquisition & Retention - Who is Suffering at the End

02:49:00 Add Comment

Reliance Jio entry into Indian Telecom sector started creating scenario wherein incumbent operators are at the spot.

Latest in the saga, Reliance Jio again approached TRAI and accused Airtel,Vodafone and Idea for blocking users who wants to port out of their existing service providers to Reliance Jio network.  The number involved in total is less than 200 and that shows Reliance Jio commitment towards their potential user.

At the same time, incumbent cannot let the user port out of the network till the guideline of the Mobile Number Portability set by TRAI.

Indian incumbent operators faced the music of MNP and how end user exploited it in 2012 to 2014 era  wherein user took the service of one operator with goodies and then ported out to another one post exhausting the goodies.

In 2012 to 2014 era challengers like Telenor  and others used MNP in their favor and acquire millions of user but unfortunately most of the user were low ARPU user.

It is surprising that based on the reports published in leading new paper not mentioned  Aircel, Reliance Communication and other which in my point bring me to a conclusion that Reliance Jio is only facing problems with three leading incumbent operator. It would be great to know about BSNL user requesting for porting out and it's status.

The real test of porting in and out using MNP will show its class post Reliance Jio start commercial service. Till Dec 31 st 2016 most of the Indian mobile users will try to misuse Reliance Jio service as it is free. I am also delighted that this time around Reliance Jio is so focused about consumer but at the end consumers are suffering. If any legitimate user trying to port out then they should not be used as dice to play competitive strategy. It's a common practice by operator to put across many clause as some of the end user through their past act forced incumbent operators to put across multiple clause related to exit.


For few, mass is suffering and both incumbent and Reliance Jio should solve it the way they did it with PoI

Why One Should Invest In Bharti Airtel

04:28:00 2 Comments

Bharti Airtel equity in the last one year is living in artificial fear psychosis created by pundits about the entry of Reliance Jio. Reliance Jio last year successfully managed to get the license from government and can offer voice services. It impacted all listed Telecom Operators but Bharti Airtel was caught up in cross fire. Some of the Analyst talks about Airtel mounting debt level, some talk about their concern about upfront payout to government of India for just concluded spectrum auction, some talk about their Africa business, some talk about growing competition from Idea and Vodafone. I feel that in competitive economic environment, above mentioned points would always revolve around market leader but is it fair to create an environment of negative news by continuously talking about threats. I would like to highlight the following and would appreciate reader view
  1. Who is the leader in the Indian telecom sector both on revenue and subscribers
  2. Who commands highest ARPU in India
  3. Who is generating maximum Cashflow
  4. Who is generating maximum revenue from Mobile services
  5. Who would get benefitted by lowered Spectrum usages charges
  6. Who owns maximum Data user
  7. Who is having one of the best data ARPU
  8. Who is having minimum churn rate among the Incumbent
  9. Who launched 4G in multiple cities
  10. Who is maintaining continuous innovation in Product positioning
  11. Who cleaned up their management within Six months with all new faces and having a guts to give well established business to a person from FMCG
  12. Who is aggressive in Broadband services
  13. Who spent Millions of $ in acquiring Qualcomm BWA without having plans for it

I must admit that Vodafone is the only competitor generating nearly same APRU like Bharti Airtel. On Bharti Airtel Africa business, one must be rest assured that once US picks then it will have cascading positive impact on Europe and other continents including Africa. Once that happen then the currently so called African operation would generate the same kind of result the way Jaguar is generating for struggling Tata Motors.


Regarding Reliance Jio entry into voice and data segment of telecom sector would carry no to little impact. I have been hearing for the last two and half year that Reliance Jio is near to launch but they are still on the design table. In my point of view, they are minimum 4 quarter away from full launch and by that time Bharti Airtel would sweep up license area with their 4G launch. One must not ignore that Bharti is having running system in place to do soft launch to realign infrastructure to refine the service defects but that’s not the case with Reliance Jio. The nearest competitor Vodafone and Idea is entangled with Tax authorities. Any tax penalty on both the companies would change their financial dynamics.

In conclusion, potential investor must read the analyst report from all leading analyst firm and their targets for Bharti ranges from 360 to 430 INR but they criticize Bharti Airtel when its trading below INR 310.

In conclusion, any investor must do their own analysis and invest particularly in the case of Bharti Airtel if they really wanna to get rewarded.