Jio witnesses highest user engagement of up to 30% among all telcos

Reliance Jio apps witnessed the highest subscriber utilisation (number of subscribers using the app) of up to 30 per cent among telecom service providers, says a recent study. For other telcos, the utilisation level was 10-20 per cent.

While part of the high engagement is due to Jio’s presence across smartphones and app-enabled feature phones, analysts said this did not mean that Jio would be able convert that into higher average revenue per user (Arpu).

In a recent report, UBS Evidence Lab said: "While Jio is slightly ahead of incumbents on app engagement, overall engagement levels are low and will limit (all) telcos' ability to charge for these apps separately. Global examples of telcos being able to charge separately for content are limited." The report noted that customer engagement on apps of telecom operators is below 25 per cent.

Top trading ideas by Tradebulls Securities: Buy NIIT Tech, sell Idea

Nifty outlook and top trading ideas from Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities:

Nifty Outlook:
Nifty has trended well post breaking above 10800 & maintained the sequence of higher bottoms well since then. The index formed a ‘Spinning Top’ formation on the daily scale & has been quoting far from its short term averages.

Stock: NIIT TECH
Reco.: Buy
CMP : Rs 1,128
Strong sector performance & the 5 weeks consolidation seems mature now. A sustained move above 1150 would accelerate the momentum as indicated by the trend strength indicator (RSI) which has witnessed a breakout from its corresponding range in yesterday’s session. Trading longs could be initiated with a stop below 1083 & a potential target upto 1246.

Stock: IDEA
Reco.: SELL
CMP : Rs 54
Secular downtrend remains intact as the lower top lower bottom sequence continues on the daily scale as well. IDEA has breached below its critical pivotal around 54 & also trading below its short term averages. Any slippage below 53.80 could drag it further lower towards 50 zone. Short positions should be maintained with a stop above 56.30.

DoT may approve merger of Vodafone, Idea Cellular in the next few days

The department of telecommunications (DoT) is likely to approve the merger of Vodafone and Idea Cellular in the next few days, making the combined entity the country’s largest mobile services operator.

Sources said all the wings of the DoT as well as Telecom Secretary Aruna Sundararajan had given a go-ahead to the merger. After signature by Communications Minister Manoj Sinha, the approval document will be sent to the companies.

The sources further said neither company would have to pay big sums to the government as most dues, including licence fees and spectrum charges, were under litigation.

“Dues under judicial intervention cannot be sought by the government. Only the ongoing dues need to be paid by the companies at the time of merger,” a source in DoT said.

The source added that although one-time spectrum charges had also been stayed, Idea Cellular, the acquirer, would have to furnish a bank guarantee for this charge in accordance with the merger and acquisition guidelines. One-time spectrum charges for Idea Cellular stand in the range of Rs 20-25 billion. Idea is likely to contest the bank guarantee demand by the DoT. Ongoing dues, which include penalties and other minor charges, are just a few billion rupees, which will be paid at the time of merger.

Jio effect: Tata Tele's net worth erodes by Rs 11,650 cr

The woes of Tata Teleservices continue to mount with its net worth eroding by Rs 11,653 crore at the end of the financial year ended March 2017, on rising losses and interest payments.

The company announced a loss of Rs 4,617 crore for FY17, compared to a loss of Rs 2,023 crore in FY16. This is a bad news for its promoter, Tata Sons, which will have to keep investing in the company’s equity so that it can meet its liabilities, bankers said. But, the company’s debt stood reduced almost five per cent from Rs 30,192 crore in FY16 to Rs 28,766 crore in FY17.

Because of the price war in telecom spurred by the entry of Reliance Jio, the Tata group company’s turnover declined to Rs 9,419 crore in FY17 from Rs 10,588 crore in FY16.

The Tata group company is not the only one which struggled during the year. Aditya Birla Group’s Idea Cellular also reported losses of Rs 400 crore, compared to a profit of Rs 2,728 crore in FY16. Sales and profits of the top two players, Bharti Airtel and Vodafone, also declined during the year (See chart).

Bankers said they were not worried about Tata Teleservices’ debt service coverage ratio of 0.18 as Tata Sons always stepped in with funds to pay bank loans. The Ebitda (earnings before interest, taxes, depreciation and amortisation) fell to Rs 1,341 crore in FY17 from Rs 1,700 crore in FY16.

Jio’s launch, in fact, has triggered a consolidation among the current telecom players. Vodafone India, the country's No.2 telecom company in terms of revenues, and Idea Cellular have announced a plan to merge their operations in India, thus becoming the country's No.1 player. Bharti Airtel, India’s No.1 player, has merged smaller player Telenor with itself. Reliance Communications is awaiting the Supreme Court’s approval to merge its wireless telephony business with Aircel, thus reducing its debt by half.

The rising losses of Tata Teleservices may be a dampener for a suitor to buy or merge the company.

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Jio effect? You could soon buy a 4G feature phone only for Rs 1,500

Last year, Mukesh Ambani’s Reliance Jio disrupted the telecom space with extremely affordable 4G tariffs. The company seems to be geared to continue its disruptive streak by launching low-cost feature phones that, apparently, will do away with the need for smartphones.

Business Standard in January had reported that Reliance Jio was considering to launch 4G VoLTE-ready feature phones that would cost around Rs 999, with access to Jio’s high-speed 4G internet, the Jio digital store and play music.

According to a report published by The Economic Times on Tuesday, Chinese mobile chip maker Spreadtrum Communications has said it is working on reducing starting prices by at least half from the current levels, which might bring the 4G feature phone prices down to Rs 1,500.

READ MORE - Rs 325 cr in 3 days: Baahubali 2 is now the highest opening Indian film

Shanghai-based Spreadtrum Communications has a two-year old partnership with Reliance Industries Ltd and has powered its affordable LYF Flame 5 smartphone.

Reliance Jio Infocomm is understood to be in talks with Chinese contract manufacturers like Techchain, FortuneShip and Uniscope to explore manufacturing of 4G VoLTE feature phones, said a Financial Express report.

Prices of 4G feature phones from home-grown manufacturers such as Lava and Micromax start at about Rs 3,000. Both these handset makers, besides Karbonn, plan to reduce prices of such phones further. Reliance Jio Infocomm is also planning to bring in affordable 4G VoLTE feature phones through its sister retail firm that may be priced under Rs 1,500, according to people aware of the matter, further said the ET report.
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No end to data wars: Reliance Jio free offers to continue for 12-18 months

The free schemes and recharge options that Reliance Jio is offering to its customers is likely to continue for the next 12-18 months, which means other telecom services providers like Airtel, Vodafone and BSNL will have to step up efforts to counter Jio's strategy.

Jio's tactic would lead to pressure on the average revenue per user (ARPU) of incumbent operators, US bank Morgan Stanley said in a report. It added that ARPU for Bharti Airtel, Idea Cellular and Vodafone India has been effectively capped at about Rs 300 due to Jio’s current offers, a report published in The Economic Times said.

Jio prepaid plans start from as low as Rs 19, and go up to Rs. 9,999, while postpaid plans are available at Rs. 309, Rs. 509, and Rs. 999 denomination. Jio launched its 4G service commercially on September 5, 2016 for free and crossed 50 million subscribers in just 83 days, and 100 million in 170 days, adding at an average rate of 6 lakh subscribers per day.
The company said that in terms of data usage it "has become the largest network globally" and plans to add one lakh mobile sites in coming months to double the network size.

The Morgan Stanley report mentioned that Jio, which started services on September 5, has netted 6 per cent of the country’s wireless subscribers and aims to get at least 15 per cent.

Reliance Jio extended the free usage period for Jio services to its existing and new customers till March 31, 2017. Jio reached the 100 million user mark in the first 170 days, adding consumers at an average of 600,000 a day.

Meanwhile, Reliance Jio Infocomm on Monday posted a net loss of Rs 22.50 crore for the six months ended March 31, 2017, as the company provided free voice and data services since its launch on September 5, 2016. The loss pertained to not just free voice and data services unleashed by its brand reliance Jio, but also on account of employee cost, finance cost, depreciation and other expenses.
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4G data war: Airtel, Vodafone, Idea counter Reliance Jio with these offers

Last year, Mukesh Ambani, the Chairman and MD of Reliance Industries Ltd launched Reliance Jio services offering free VoLTE-based voice calls, apps, sms and high-speed 4G data. Soon after, the incumbents like Airtel, Vodafone and Idea faced the heat that led to the greatest tariff war in telecom sector of all times.

Now, when Reliance Jio trial offer giving free services is over and the telecom major is offering ultra-affordable plans and recharge options to provide free voice, sms, apps and high-speed 4G data, the other telecom giants such as Airtel, Vodafone and Idea are not leaving any loose ends to fight the competition by offering additional 4G data and free calls in existing postpaid and prepaid plans.

Here are the current plans that the telecom giants are offering:

Reliance Jio

Reliance Jio is currently offering three recharge offers to its prime users.

Rs 149 plan: The subscriber gets 2 GB high-speed 4G data for 28 days. In addition, there are free voice calls, Jio apps and 300 sms bundled with the offer.

Rs 309 offer: The subscriber gets 1 GB high-speed 4G data per day for 28 days. In addition, there are free voice calls, sms and Jio apps bundled with the offer.

Rs 509 offer: The subscriber gets 2 GB high-speed 4G data per day complimentary for 28 days. In addition, there are free voice calls, sms and Jio apps bundled with the offer.

For non-Prime members, the telecom operator is offering the above-mentioned plans at Rs 408 and Rs 608 (Jio Prime membership fee and regular recharge price).

The above-mentioned plans are not available for customers already registered for Jio Summer Surprise offer.

Airtel

Postpaid

Airtel is offering up to 30 GB of additional free data for the next three months. The offer can be availed using 'My Airtel' app by April 30. The offer is valid for users who joined Airtel network before 28 February.

Prepaid

Rs 399 plan: Under this pack, users will get 1 GB data per day only if they have a 4G smartphone and SIM card. The free calls incentive comes with a 3,000 minutes cap for a 70-day period. When the minutes gets exhausted, users will be charged Rs 0.10 a minute. For Airtel-Airtel calls, the limit is 300 minutes per day, but 1,200 minutes is the maximum consumption per week.

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All you need to know about Reliance Jio Prime membership that opens today

Latest Business News - The luxury enjoyed by Reliance Jio users is about to end. However, as a smart entrepreneur, Reliance Group chairman Mukesh Ambani has taken attractive measures to keep his loyal 100 million customers content. While Jio users will now be charged for data and other services from April 1, the company is seeking to retain them through special prime memberships at a one-time fee of Rs 99 and Rs 303 a month for unlimited voice, data and content.

Reliance Jio Prime subscriptions open from today and will close on March 31, 2017 for those who have signed up since September 5, 2016, when the services were first offered.

Jio Prime membership

Jio Prime requires one-time membership charge of Rs 99 to be paid before March 31, 2017. It is an extension of the unlimited services offered under the Happy New Year Offer. Users can apply for Jio Prime subscriptions till March 31, 2017. The Jio Prime plans come into effect from April 1, 2017, the day the existing Jio Happy New Year Offer expires

Here is what Jio Prime subscribers will get:

* Customers who sign up for Jio Prime subscription will be able to use unlimited data and voice services for a year at Rs 303 a month under a special offer (effectively just Rs 10/day)

* User can continue enjoying unlimited offering for another 12 months after enrolment.

* All domestic voice calls to any network will always remain free. No roaming charges will be applicable and there won't be black out days either.(Read More)

Bharti Airtel to buy Telenor India unit in response to Jio onslaught

Breaking news - Bharti Airtel, India's largest telecom network operator, is buying Norwegian Telenor's India unit, in yet another consolidation move in India driven by upstart rival Jio's disruptive pricing.

Bharti Airtel said on Thursday it will buy Telenor (India) Communications Pvt Ltd, as part of which it will acquire the Norwegian company's operations in six Indian states. It did not disclose financial terms of the deal.

The entry late last year of Reliance Industries' wireless carrier Jio into India's crowded telecom sector with its free voice and deeply discounted data plans has pushed rivals to slash costs, sharply eroding their profits.


Bharti Airtel reported its lowest profit in four years in the October-December quarter while No. 3 player Idea Cellular posted its first-ever quarterly loss for the same period.

Jio's gameplan is also sparking consolidation moves.

Britain's Vodafone Group said last month it was in talks to merge its Indian subsidiary with Idea Cellular to create India's largest mobile operator with about $12 billion in sales.

And earlier, Reliance Communications had entered into an agreement to merge its wireless business with smaller rival Aircel.(Read More)

Here is what Airtel, Idea and Vodafone are offering to counter Reliance Jio

Breaking news - Reliance Jio made a big announcement on Tuesday following which the road ahead doesn't look smooth for rivals Airtel, Idea Cellular, Vodafone, among others. Although the free services provided since its launch, including 1GB data at 4G speeds every day, unlimited voice calls and unlimited text messages will be over after 31 March, the operator has introduced a new plan called Jio Prime which will allow users to avail the facilities for another year at a nominal price. 

Here are the key points:

• Membership: Jio Prime membership is limited to the 100 million existing Reliance Jio users as well as those who join the network before March 31, 2017. 
• Cost: All Jio members can enroll prime membership for a one time fee of Rs 99 (which is valid for one year). Additionally, to get the free mobile data and other benefits, users will need to pay another Rs. 303 per month for the next 12 months (which amounts to Rs 10 per day, approximately). 
• Subscription: To subscribe, users can go to any Jio store or Jio partner store. Besides, MyJio app and Jio.com website can also be used. 
• Commencement: Users can start subscribing to the plan from March 1. It will end on March 31.
• Offers: Under the plan, unlimited mobile data for a year (1GB daily FUP limit), media and content benefits associated with the Jio apps suite are available. "There will be many other attractive deals and offers from both Jio and its partners (for) the Jio Prime members," a statement released by the company said. Like the current offer, Jio Prime will also reduce the internet speed to 128kbps after the 1GB data per day limit is crossed.
• Users who do not subscribe: Reliance Jio users who opt not to subscribe the Jio Prime membership will have to pay for data and other services, but not voice calls (including on roaming). 

A quick look at the offers provided by Vodafone, Airtel and Idea

Jio, Tata oppose Airtel, Vodafone plea on Trai's IUC rules in Delhi HC

Latest Business News - Reliance Jio and Tata Tele Services Ltd (TTSL) Wednesday opposed in the Delhi High Court the pleas filed by telecom firms Bharti Airtel and Vodafone challenging Trai's interconnect usage charges regulations fixing termination charges for the landline to wireless as zero paise and wireless to wireless at 14 paise per minute.

Interconnection usage charges (IUC) or termination charges are payable by one telco, whose subscriber makes a call, to another whose subscriber receives the call. The charge is payable by the first for using the second's network.

The counsel appearing for Reliance Jio and TTSL told a bench of Chief Justice G Rohini and Justice Sangita Dhingra Sehgal that they are opposing the petitions filed by Airtel and Vodafone.

To this, the bench said, "We felt that all the service providers are on the same footing."

However, senior advocate P Chidambaram, who was appearing for one of the petitioners, told the bench that service providers who have less customers are not at "disadvantage" but operators having a large customer base are "suffering" due to the regulation.(Read More)

Google looks to turn on its revenue tap from Android in India

Breaking News - Airtel and Vodafone subscribers in India have begun seeing an option to pay for apps, games, books and movies on Google's Play Store through their carriers, allowing them to buy services on their Android devices without a credit/debit card or net banking.

Combined, the country's two largest mobile service providers have over 450 million subscribers, giving Google a massive base of customers who will now be able to buy services on its Play Store more easily. The company's Android operating system powers 9 out of 10 smartphones in the country.

Google has not officially announced the launch of carrier billing for Airtel and Vodafone users in the country, but both prepaid and postpaid users have begun seeing the option. Upon initiating a payment however, users are shown an error message suggesting the integration isn't yet complete.

"We are continually looking at ways to enhance user experience, including payment options available on our Play store," a Google spokesperson said when contacted about the development.(Read More)