ITV

Tag: Telecom Regulatory of India

  • Reliance Jio to delay its commercial roll out till December

    Reliance Jio to delay its commercial roll out till December

    MUMBAI: The onslaught might take a little while before it revs itself for a decimating run in the Indian telecom ecosystem.’The world’s most expensive start-up entailing an initial investment of Rs.1.5 trillion – Reliance Jio’, as termed by Reliance Industries  chairman Mukesh Ambani who has a revolutionary vision of  digitising the entire country to get its people to use the internet. Reliance Jio 4G services were launched for the employees and privileged personalities in December last year (2015). At that time speculations were rife that the company would roll out its commercial services in early April, though the company did not release any official statement indicating the launch date.

    As per information available with Indiantelevision.com, Reliance’s 4G services are likely to launch in December 2016. A source close to the development informs, “They are planning the commercial roll out this December. There are many factors which are evolving and the launch will take time. Before the commercial roll-out there will be phases of soft launches in various regions to conduct a test run in each and every region.”

    Reliance Jio’s immediate target will be the premium consumers of other networks. Research says that consumers with spends of Rs 300 per month and above are most vulnerable to poaching by the Jio onslaught. The biggest player in the Indian telecom ecosystem,  Airtel has 89 per cent of its 250 million subscribers that use feature phones or smartphones only for calls and not data. Hence the ring fencing will happen for the 11 per cent of the premium consumers. “Airtel is planning to counter Jio with its own weapons,” says a veteran in the telecom industry. He further adds, “Jio will roll out combo plans where voice calls and SMS services will be offered for free or at cheap prices. It will also package 4G services with mobile devices. In the initial stages it will roll out many lucrative offers to poach consumers.”

    When contacted, the corporate communications team of Reliance Jio refused to offer any comments. “We have not declared any date and hence there is no question of postponements or delays,” the team said.

    One of the vendors that provides technical assistance to Reliance Jio asserts, “The internal declaration to roll out in December is primarily to ensure maximum reach. Availability and affordability are key factors which the company is not ready to compromise with. Moreover there will be an aggressive marketing plan to back the launch, so overall its a strategic move to wait till December.”

    Driven by strong adoption of data consumption on handheld devices, the total mobile services market revenue in India is expected to touch US$ 37 billion in 2017, registering a compounded annual growth rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC.

    According to a Telecom Regulatory of India (TRAI) press release, as of 31 January 2016,India’s mobile subscriber base has crossed the one billion mark. A study by GSMA says that smartphones are expected to account for two out of every three mobile connections globally by 2020 making India the fourth largest smartphone market.The broadband services user-base in India is expected to grow to 250 million connections by 2017, says GSMA.

    The opportunity is huge, and will benefit the ultimate user, given the poor quality of intermittent 4G data services that are being offered by the players in the market at present.

  • Reliance Jio to delay its commercial roll out till December

    Reliance Jio to delay its commercial roll out till December

    MUMBAI: The onslaught might take a little while before it revs itself for a decimating run in the Indian telecom ecosystem.’The world’s most expensive start-up entailing an initial investment of Rs.1.5 trillion – Reliance Jio’, as termed by Reliance Industries  chairman Mukesh Ambani who has a revolutionary vision of  digitising the entire country to get its people to use the internet. Reliance Jio 4G services were launched for the employees and privileged personalities in December last year (2015). At that time speculations were rife that the company would roll out its commercial services in early April, though the company did not release any official statement indicating the launch date.

    As per information available with Indiantelevision.com, Reliance’s 4G services are likely to launch in December 2016. A source close to the development informs, “They are planning the commercial roll out this December. There are many factors which are evolving and the launch will take time. Before the commercial roll-out there will be phases of soft launches in various regions to conduct a test run in each and every region.”

    Reliance Jio’s immediate target will be the premium consumers of other networks. Research says that consumers with spends of Rs 300 per month and above are most vulnerable to poaching by the Jio onslaught. The biggest player in the Indian telecom ecosystem,  Airtel has 89 per cent of its 250 million subscribers that use feature phones or smartphones only for calls and not data. Hence the ring fencing will happen for the 11 per cent of the premium consumers. “Airtel is planning to counter Jio with its own weapons,” says a veteran in the telecom industry. He further adds, “Jio will roll out combo plans where voice calls and SMS services will be offered for free or at cheap prices. It will also package 4G services with mobile devices. In the initial stages it will roll out many lucrative offers to poach consumers.”

    When contacted, the corporate communications team of Reliance Jio refused to offer any comments. “We have not declared any date and hence there is no question of postponements or delays,” the team said.

    One of the vendors that provides technical assistance to Reliance Jio asserts, “The internal declaration to roll out in December is primarily to ensure maximum reach. Availability and affordability are key factors which the company is not ready to compromise with. Moreover there will be an aggressive marketing plan to back the launch, so overall its a strategic move to wait till December.”

    Driven by strong adoption of data consumption on handheld devices, the total mobile services market revenue in India is expected to touch US$ 37 billion in 2017, registering a compounded annual growth rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC.

    According to a Telecom Regulatory of India (TRAI) press release, as of 31 January 2016,India’s mobile subscriber base has crossed the one billion mark. A study by GSMA says that smartphones are expected to account for two out of every three mobile connections globally by 2020 making India the fourth largest smartphone market.The broadband services user-base in India is expected to grow to 250 million connections by 2017, says GSMA.

    The opportunity is huge, and will benefit the ultimate user, given the poor quality of intermittent 4G data services that are being offered by the players in the market at present.

  • Chandra exhorts industry to sink differences

    Chandra exhorts industry to sink differences

    NEW DELHI: While exhorting broadcasting industry to sink differences for collective benefit, Zee Telefilms chairman and maverick media entrepreneur Subhash Chandra today posed several issues before the government and sector regulator, including level playing field vis-à-vis telecom companies.

    “Let us all work together for long term benefits as blaming each other will not help. Let us work in partnership,” Chandra appealed to various constituents of the industry while delivering a keynote address at the India Broadband Digital Networks Forum organized here by Indiantelevision.com and Media Partners Asia. 

    Citing the example of CAS, Chandra wondered if all the stakeholders felt that addressability is good for the industry, how come it hasn’t yet become a reality in India.

    “Simply because vested interests (including broadcasters and cable fraternity) worked against CAS’ implementation since 2003,” Chandra said.

    Though he sought a more liberal regulatory regime both in terms of pricing and policies in the presence of I&B secretary and Trai chief , he agreed with both of them that comparison of the Indian market with the likes of US and UK is uncalled for as the former has its own needs and peculiarities.

    “If we had followed the American model, it would have needed investments worth $ 150-200 billion to bring the cable TV market to a level it now enjoys in terms of penetration, revenue and employment generation in India,” Chandra said.

    Earlier, information and broadcasting secretary SK Arora in his keynote address made a fervent pitch for digitalization of broadcasting services, which is imperative to keep pace with global trends and changing business models of media companies.

    “In terms of size and magnitude, the potential of the Indian broadcasting industry remains…and it’s quite a challenge to identify the impact that emerging technologies would have on business models of companies,” Arora said.

    Pointing out that India needs to design its own “solutions” keeping in mind the socio-economic scenario (read good services at low prices), Arora said regulations would be guided by the principle that “consumer is king.”

    According to the government official, in the 11th Five-Year Plan, the work on which is presently underway, the government is attempting to address the issue of digitalisation through “public-private partnership.”

    “We are encouraging and nudging them (the industry players) to move towards digitalisation,” Arora said, adding the first phase of it is expected to be completed by 2010 coinciding with Delhi playing host to the Commonwealth Games.

    Concurring with Arora, Telecom Regulatory of India (Trai) chief Nripendra Misra said arrival of digital technology, which gives more choice to consumers, and rapid convergence of services like telecom, infotech and broadcasting were two major trends of the television industry.

    However, Misra admitted that unregulated growth and lack of addressability had thrown up its own problems for the broadcast and cable industry.

    In such a scenario, DTH and CAS will have far-reaching impact on the industry, Misra said.

    Unfazed by widespread criticism of some pricing diktats of Trai earlier, Misra said that the regulator’s endeavour is to spread level playing field for all and formulate policies that are based to encourage efficiency, financing, development and equality.

    Though he admitted various legal lacunae is hampering a move towards unified licencing (whereby one single licence would enable delivery of telecom and broadcast services) at present, he envisaged in future cable networks might provide telecom services and give competition to telecom companies.

    “Convergence is being seen as an opportunity (in India)…but any development globally has to be seen in the Indian context,” Misra said, adding Trai will be coming out soon with a consultation paper on IPTV again.

    Meanwhile, at the start of the event, Indiantelevision.com founder and editor-in-chief Anil Wanvari and MPA executive director Vivek Couto gave a snapshot of the Indian broadcast industry and the trends that have emerged over the last few years increasingly leading towards convergence.

    The morning session was attended by industry luminaries and senior government officials, including John Malone-controlled Liberty Media board member Shane O’ Neil.