Tag Archive for 'Value Added Services'

3G India: Who needs it?

Published on 08th Nov 2009 in Indian Telecom. 0 Comments Tags: , , , , , , , , , , , , .

The following is the text of the email sent and an edited version appeared in Business Standard on 06/11/2009.

Dear Sir,

This refers to Shyam Ponnapa’s write up on BS dated 05/110/2009 (Managing Spectrum Efficiently).

The big question. Why do we need 3G? Why not focus on the land line business alone for broadband access? Or better still. Community Wifi?

The arguments for doing away with this are many. Community Wifi is deemed to be a security risk but then countries like Singapore have implemented this on a large scale nationwide. The mobile phones required to access 3G invariably have Wifi access too. Unless, the telecom companies are expecting surefire hits like Apple iPhones or flood of other smart phones to access the Internet, it is not happening.

We don’t have accurate numbers about the likes of Reliance and Tata who are offering their 3G access. If initial reports are to be believed, they are plagued by “line of sight” hassles, ‘network congestion’ and lackluster customer support. To top it all, it has the access limitations which means that broadband access, even on the 3G spectrum would be capped for very obvious reasons.

We have enough bandwidth in the country but as anyone would testify, we have problems in implementing the “last mile access”; having a contentious set of issues like 3G is not going to solve the persistent problem of “last mile access” because no one is interested in sinking money for a long term.

We can have a fair idea from the existing companies like Airtel or Vodafone who charge exorbitant rates under the present implementation of “mobile internet”. What is the guarantee that they would lower down the prices once they pay fancy sticker prices in 3G auction?

3G, would most likely be used for carrying more voice traffic because none of the players harbours any disillusionment about the “mobile broadband” across the length and breadth of the country.
The market for value added services is locked up within the “walled garden” of the existing players; it is unlikely that 3G access would “revolutionize” the content.

This pretty much sums up what I have always alluded here and my opposition to 3G remains.

Indian Telecom: End of the boom?

Published on 08th Nov 2009 in Airtel, General Thoughts, Indian Telecom, Mobiles, Reliance, TRAI, Tata Communications, Telecom News, Vodafone India and Vodafone Sucks. 0 Comments Tags: , , , , , , , , , , , , , , , , , , , , .

This is what the headlines in Business Standard say. Let me highlight the relevant portions of the report for your eyes only:

Rising competition (13 licences for each circle), falling tariffs (lowest in the world, falling further because of per-second billing), rapidly declining average revenue per user (ARPU) because the newer subscribers are the low spenders in semi-urban and rural areas, and high taxes (about 30 per cent in all) ……….have put paid to the aspirations of not only the new entrants but also incumbents……..deleted.

Forget about fancy valuations. I have always contested the claim about the “lowest tariff in the world” because it is not in consonance with the actual “gini coefficient”; which means that we pay more than we can actually spend. It is a bitter truth but then the newspapers need a lifeline of their advertising spends, so rest assured, this truth will NEVER be out.

……Nearly 15 million more users came on board in September….. It has also brought into focus the phenomenon of dual SIMs — existing subscribers are acquiring additional connections, resulting in a seeming increase in subscribers but in fact merely leading to a bill being split between two or more service providers….Deleted.

For the first time, to my knowledge, a newspaper daily has mentioned this in black and white. Let me also repeat. The operators keep the discarded number for a period of atleast 3 months before it is “terminated”. So even though, a customer has left in the middle of month, the disconnection would not be reported for another 3 months (which, I believe is an industry practise). The same customer may acquire multiple connections or dual SIMS; so it is the growth of the SIM cards and perhaps not the customers which is reported. In any case, the simple headcount may not be feasible.

Industry executives blamed much of the ills on the government and the regulator. With falling tariffs, they need to cut costs, but their hands are tied because 35-40 per cent of their costs are taxes and other regulatory expenses. They have to pay 5 per cent of their revenue even from rural areas towards the universal service obligation fund which is meant to promote rural telephony. They said there was no need for the regulator to push for pay-per-second billing by all…… Deleted.

Now this is something that industry officials would always bleat about. Let them come out openly against the said “policies”…shadow fighting the Government wouldn’t help. For one simple reason. If these morons had any iota of service towards customers, I would have sympathized with them. But, they treat their customers like dirt; more so like crap cash cows who feeds in their kitties with little change so that likes of Mittal and his ilk can reap in obscene profits. In any case, let them prove their worth with their commitment to service, their willingness to be transparent, their approachability and customer care in the true sense of the term. People need their money’s worth but alas! My countrymen are basically lazy bastards who wish to have everything on platter without fighting for it.

…….the incumbents said they remain committed and focused on growth. “We will continue to enhance our market leadership and simultaneously open new revenue streams like m-commerce, m-entertainment, digital media and many other products……Deleted.

They have no real option but to focus on Value Added Services which is “babes, bikinis and bollywood”. Unless these people want to “focus” on phone sex services which would be a “high revenue earner” for them.

Rest of the write up seems to sum up the gloom and “brave words” just to reassure the shareholders that “we are up to it”. That we would weave our small little web of deceit, of lies and pull wool over the regulators and leave no stone unturned to defraud our customers because they are basically bunch of idiots and nincompoops. No one knows how much unaccounted for wealth flows in and out of system or whether this elaborate system allows them to launder their money in more effective way. There is no accountability to the customers because they are using a PUBLIC resource and merely by adding value to it doesn’t entitle them to the ownership of it.

Sadly, this isn’t mentioned anywhere. This of course, would be mentioned at all.

Tatas: Selling their soul

Published on 15th Sep 2008 in Tata Indicom and Tats Communications. 0 Comments Tags: , , , , , , , , , , , , , , .

Poor idiots! They had to sell to DoCoMo, a leader in the 3G services. With the policy as announced, the duds had it in them. They had to sell out to the highest bidder. Very soon, the whole landscape of the Indian telecom would change. We would not have homegrown company like Airtel but instead this would be a battle ground for the big global majors to fight it out for customers.

The size of the deal is pegged at $1.5 billion (about Rs 6,700 crore), translating into a $6-billion (Rs 26,000 crore) valuation for the company that runs networks across the country and is planning to expand into GSM mobile services in the near future. Tata Teleservices is a loss-making company. Between 2005 and 2007, its cumulative losses stood at Rs 5,604 crore

This India story has been done to death many a times. There is no real addition of the 8-9 million customers per month. It is simply not possible. Most of the metros have choked and jammed. It is saturated. In order to expand into tier B and tier C cities, telcos need funds and assured returns. For all practical purposes, I dont forsee the market “hot and happening”; although the 3G services would assure monetised returns and would ride on the value added services.

It is no secret that Tatas claim their superiority of services based on some abstract benchmarks. There are people who would swear to God not to ever think of Tatas as their service provider. Frankly, TRAI has been unable to implement its own customer friendly norms; trying to get anything out of the useless idiots manning the customer service is a herculean task in itself.

Tata is a weathered story. They have lost it and the writing on the wall is as clear as the sunlight illuminating the dark dungeons of their minds. Telecom is a failed venture and they ought to accept defeat and ship out of business.

IPTV India: Against DTH?

Published on 15th Aug 2008 in General Thoughts. 5 Comments Tags: , , , , , , , , , , , .

Viewers are spoilt for choice. DTH is a credible option and at the start of the day, I had no frigging clue to the pent up demand for the same. The Direct To Home players like Tatas and Zee have spent oodles of cash on advertisements and hardware roll out that it appears unlikely that a newer player would be able to get a toehold.

Here in the grand strategy of Anil Ambani unfolds. He got the ad labs, poured in money in content creation and would make a huge moolah out of “exclusive” deals with media players. The value added services is a growing market and there is a HUGE space for exclusive content; I was surprised to know that there is a seperate channel for gardening; Tata has one for home tuitions. Although, it cannot replace the classrooms but then parents are keen for any degree of experimentation.

Coming back to IPTV. Does anyone of you readers think that this could make any degree of impact on the viewership? I feel that most of the people mistrust the landline outages (which are so frequent) unless there is a fibre to home coming to their homes with simple instructions to operate the set top box. The present hardware is designed to confuse the first time users; somewhere it ought to ring the bell to make it as simple as possible.

I would reserve my comments on the two competing platforms till the market matures up. Reliance is lying down low with it’s broadband offering. I am still wondering as to what has been the issue at their end. Why are they delaying the commercial launch? There are any number of ideas floating around and if they claim to be India’s number one network as far as the coverage is concerned, they ought to focus on their cherries. Or else, it would die a virgin.

Mobiles in India: Value added services

Published on 10th Aug 2008 in General Thoughts and Telecom News. 0 Comments Tags: , , , , , , , .

This is a link to Rajesh Jain’s blog; Emergic. I am glad that he has started blogging again, although he is doing to promote his venture called as Netcore. He used to post across links daily to various tech columns and had amassed a good amount of readership. One of his employees is Atanu Dey who blogs regularly on his own site on Deesha. I am not sure how they are joined in the scheme of the things but Rajesh Jain does have his own crack team.

He does some numbers on the mumbo jumbo that is Value added services and I am more inclined to believe these stats as compared to the crap that gets dished out in the media. All in all, it is not the billion dollar industry but a more sedate estimated $200 million dollars. The number of subscribers may be “booming” but the real revenues are not. The mobile industry is playing a volume game and the new entrants realise it.

I feel that as the market matures and regulation becomes more pro active (i.e. there are no two centres of power- TRAI and DoT), it would be more fruitful for the customers. For starters, we would have more representation in the regulation from the customers; a real watchdog on lines of Ofcom who would penalise the lousy shit heads called as honchos and fair play instead of favouritism to likes of Reliance.

VAS (value added services) would help to extend the utility of the handset. Instead of downloading ringtones (which is an absolute no brainer), the likes of m Commerce might take roots. I had written an article on the same ages ago; Tata had plans to launch it in India. Somewhere along the line, the lost that game and became just another company with a fancy mobile telephone infrastructure.

If the market has to grow, there has to be a shift towards the basics. m Commerce can happen via secure sms based transactions. If the acceptance grows, I am sure there would be a good amount of money to be made in this.

Reliance India: Anil Ambani making right moves

Published on 01st Jun 2008 in Indian Telecom. 0 Comments Tags: , , , , , , , .

After Bharti, MTN chose to court Reliance. It sounds like a whorehouse. MTN is playing the perfect mistress to the hilt and has no compunctions to court customers; all in order to increase it’s share valuation. Reliance is eager to get a hold of their booty because it realises what Airtel doesn’t. It can easily scale up it’s investments in other parts of the world, negotiate for better prices of it’s equipment and telecom gear and leverage it’s investments in entertainment by offering value added services.

Anil Ambani’s fascination seems to have stemmed in from watching too many movies (1,2) and his scaling up his investments in Hollywood as well as his maiden venture Big Flix Spearheading these investments is Amit Khanna who is a failed producer of Hindi movies.

Entertainment in Indian terms is very coarse to define. Indian laws are “strict” as far as the western counterparts are concerned and what passes through the censor’s scissors is defended in terms of artistic freedom. It’s futile to comment on the various crop of heriones who serve as a fodder for casting couches but this association of money and glamour has been significant. Anil Ambani is trying to marry the two different worlds of films and telecom; hoping that it would click. He bought a chain of theatres to justify his expansion in US and hoping to fructify his couple of millions in Hollywood.

All in all his efforts to bring forth the broadband revolution have come to a naught. Long time back, I could starry eyed kids jamming on the country wide LAN and getting to play the first person shooter games. It was an idea that was well ahead of it’s time and it’s been ages literally that I have visited a Reliance Web World myself. Have they been given a decent burial? I have no clue. But Anil Ambani is very keen to scale up his investments in portals like Zapak. Not only it has a weird sounding name, it has full scale coding errors. Big Flix suffers from patchy server connectivity and it’s easier to log on to You Tube and watch a movie than suffer endlessly on Big Flix and expecting it to load up.

Movie rentals are yet untested success formula and I’d be happy to visit the neighbourhood shop owner who gives me a better service than a nameless dude giving me a DVD. If Anil Ambani really wants to make it big, he should explore the Broadband route and serve the movies from a decentralised server; single server costs would skyrocket once the service catches on. He should ensure minimum downtime and always on connectivity in excess of 5 Mbps. This is a tall order indeed and needs huge investments. Although, the returns would be manifold.

He is on the cusp of launching his DTH platform (one of his significant investments) called as BIG TV and hopes to catch up with the existing players. I don’t endorse his investments as yet; atleast not in the TV and Media (BIG FM for radio).

Can you see a pattern? He’s aiming for a cyber presence and across the cross spectrum of media. As and when private FM channels are allowed to transmit news (which would be a sad day indeed), BIG FM, BIG TV, BIG Flix et al would be at the forefront with perhaps “BIG Paper”‘ too.

If you click on the links to You Tube, you’d find his reason to marry the actress too. Sadly, she doesnt inspire him much for broadband though.

Virgin India Mobile: New service that never happened

Published on 09th Mar 2008 in Indian Telecom. 14 Comments Tags: , , , , , , , , , , , , , , , , .

Virgin Mobile was deflowered by Department of Telecom for not complying with licence norms. For those who have come late, Virgin Mobile is a mobile virtual network operator. They tied up with Tatas and wee about to start off their services here in India.

I fired an email to their PR division. Their comments came in an attachment; not a good PR strategy in my opinion. They should have sent a seperate email or should have had a logo prominently displayed.

Here is the exact copy. My comments appear in italics in paranthesis.

1) Is Virgin a Mobile Virtual Network Operator independently acting in India?
Virgin Mobile services are being offered to consumers by Tata Teleservices through a brand franchise with the Virgin Group. This means that Virgin Mobile is a brand of Tata Teleservices. This brand franchise is within the permitted norms of license agreement of Tata Teleservices (Confused statements. Nevertheless, the supposed licence agreements have been invalidated by Department of Telecom in their wisdom. The email from the PR division came in before this happened).

2) Do you have a tie up with Tata Teleservices?

Virgin Mobile India is an equitable partnership (then what is the brand frachise?)between Virgin Group and Tata Teleservices. Virgin Mobile India will provide Tata Teleservices with experience and expertise in designing, marketing, and servicing Virgin Mobile branded products for the youth segment.

3) Who has designed your website?
Need inputs (Ha! They don’t know the name of their web designer!!! This has been prominently displayed on their home page. At first, I realised the futility of the question AFTER I had sent the email. However, even I was not prepared for their answer. Anyone with the right brains could have easily figured that out. Despite all the flash, it is choked of coding errors- a common refrain of most of the websites not designed to comply with web standards).

4) Why do you make service guarantees for network availability? Are you 100% sure that your network would not fail as compared to other service providers?
Virgin Mobile places huge importance on ensuring that we deliver a high quality service to customers. This philosophy pervades in everything that we do- quality of network, range of handsets, value added services on offer, customer care etc. We chose Tata Teleservices because we believe it has the best quality network in India (Who decides that?). According to published reports (where?), Tata Teleservices has the lowest dropped call rates and one of the lowest blocking rates in the industry(how?). This means that ‘Virgin Mobile’ branded customers will reliably be able to enjoy clear calls, a fast connection and low dropped-call rates(Low dropped call rates? Despite the network, customers would still experience call drops! Even though, they may be low by industry standards!!!).

5) Why did you choose to go ahead with Virgin?
Virgin brings extensive experience and expertise in targeting the youth market across 7 countries over the last 8 years. It is this experience, service innovation and ability to catch the pulse on the youth market that makes Virgin a perfect partner for our ‘youth’ brand.

All in all, it remains a perfect example of PR crap. Tata seriously needs a reality check. They have honest intentions; they need to tap the youth market. Their perception in the market is jaded and also ran; which is different from say Hutch. Most of the companies are aspiring for “youth tag” and hope that it would add “zing” to the company.

Why youth? They aspire for a better lifestyle and if a brand fits in their perceptions of being the “right one”, they would splurge on it. It remains true for the metros as well as the smaller towns and cities. However, Virgin Mobile would need massive advertising money to cause a “brand recall”, just like they have associated a dog with Hutch. For the same reason, having Shah Rukh Khan for Airtel has not worked well because he endorses many other brands. Further, Airtel’s marketing division is pits.

I feel that the PR divisions needs a better infusion of brains than the current crop of retards that presently infest them. They need to tone up their language primarily because flowery English doesnt work. Unless someone is looking at impressing some starry eyed nut.

By the way, their website designer is bcwebwise. It speaks very highly of it’s boss who is an ex journo and has ventured in web designing. It has jarring colours and as usual coding errors :) Not a very comforting thought to pay dollops of money to those who cant even ensure compliance to web standards.

Update: I got an email from their PR agency saying that the attachment was sent by mistake. They wanted to send a further email from their PR agency regarding the new development of licence norms. They wanted my telephone number in order to speak to me and clarify issues.

Incidentally, Virgin India came with front page advertisement on 10/03/2008 in Delhi edition of Times of India. They are paying the customers to recieve incoming calls. In my opinion, this is basically a gimmick to lure in customers initally; their call rates are almost similar as that of other operators.

I shall keep this post updated as and when newer developments happen.