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Reliance Jio’s hyper-aggression scorches competition



Reliance Jio’s hyper-aggression scorches competition

[vc_row][vc_column][vc_column_text]Market analysts predict fall in revenues in telecom sector

By Sindhu Bhattacharya

Reliance Jio Infocomm is living up to the hype surrounding its arrival, having ‘primed’ competition to offer unbelievably low priced data packs over the weekend. Remember, though RJio has said its services will become commercial from April 1, after a six-month free run, it has priced these services dirt cheap and is driving membership of ‘Prime’ aggressively before March ends. This combination of low-priced data packs and Jio Prime membership drive is already killing the telecom industry.

On Sunday, Paytm chief Vijay Shekhar Sharma started a thread where he sought additional data from market leader Bharti Airtel on Twitter. He began by seeking more information about the Rs 549 plan that offers 1 GB data limit every day. Sharma said he called up Airtel customer care and got 60 GB per month data use option in place of current 15 GB monthly usage limit on Rs 2,999 plan.

Though many among the Twitterati panned him saying there was no need to continue paying Rs 2,999 despite increased data usage, Sharma’s thread spurred countless mobile phone users to also seek higher data usage from their respective service providers. Meanwhile, RJio snatched this opportunity and said on twitter that it would offer him 56 GB mobile broadband plan for just Rs 499, which Sharma obviously accepted. It is entirely possible that Bharti will now try and retain Sharma’s connection by offering him matching plans offline, but the point really is that RJio is changing tariff dynamics of the industry and everyone will have to suffer a cut in revenues due to this.

Rajiv Sharma and Darpan Thakkar of HSBC Global Research said in a note to clients that despite RJio beginning commercial operations from April, “We see sector revenues declining in FY18 by 6% as Average Revenue Per User (ARPUs) for the mid- to high-end of the subscriber base with incumbent telcos may get reset to significantly lower levels. The revenue decline may be bigger for the sector if termination rates were to decline meaningfully, as this may add to the ongoing tariff wars the sector currently faces.” Remember, the industry has already seen a similar 6% decline in revenues in the third quarter, when RJio services were free.

In fact, Edelwiess analysts Sandip Agarwal and Pranav Kshatriya had another warning for the embattled telecom industry: they expect RJIO to venture into feature phone segment with aggressive voice offering which will drive down voice realisations, leading to revenue headwinds. So not only is cheap data fast becoming a headache for the leading telcos Bharti, Idea Cellular and Vodafone India, even voice realisations may fall in the near future.

According to this piece, RJio is offering two key monthly plans at Rs 499 and Rs 303, with 28 days of validity each. Apart from basic offerings, the 4G data available to a non-Prime user in the Rs 499 plan is 5GB for 28 days without any daily cap. But Prime members will get 2GB of 4G data every day, which means 56GB in 28 days. The Rs 303 Plan offers 2.5GB 4G data to non-Prime users, valid for 28 days, while Prime users will receive 1GB 4G data every day for 28 days. It is obvious that with such generous data offers, competition to RJio also needs to loosen its purse strings.

RJio is in a hurry to gain market share and this is evident from presentation it gave to analysts on Friday. Sample this: RJio is targeting 50% market share, in a market 50% larger and an Ebitda margin of 50% by 2021. This means it is eying $22 billion revenue and $11billion Ebitda within the next four years. Obviously then, it must wean away customers from competition to achieve such ambitious targets. But are the RJio targets realistic?

Analysts of IIFL Institutional Equities said in a note to clients that RJIO’s Prime membership will threaten industry revenue growth over the next six months.  They also quoted the company’s presentation to say “R JIO thinks that in its 1GB/day Prime plan at Rs303 for 28 days, effective yield will be Rs30/GB and it will go up to Rs50/GB in six months and will be higher in regular packs. We think RJIO has overestimated industry revenue and its revenue market share, and it has underestimated the capability of competition to raise their data capacity.”

Whether Rjio achieves its ambitious medium term targets of market share etc remains to be seen. But in the immediate future, competition cannot afford to sit over RJIo’s unmatched aggression. In these telecom wars, the only beneficiary for now seems to be the Indian phone user.[/vc_column_text][/vc_column][/vc_row]

India News

OYO founder Ritesh Agarwal’s father falls to his death from Gurugram high-rise, days after son’s wedding

According to the reports, he fell from the 20th floor of the building.



OYO founder Ritesh Agarwal's father falls to his death from Gurugram high-rise, days after son's wedding

Hospitality chain OYO founder Ritesh Agarwal’s father Ramesh Agarwal died after falling from a high-rise building in Haryana’s Gurugram on Saturday afternoon. According to the reports, he fell from the 20th floor of the building.

The incident took place at around 1 pm at the DLF’s The Crest Society in Gurugram’s Sector 54. He was immediately rushed to the Paras Hospital for treatment, however, the doctors declared him brought dead.

The police reached the spot as soon as they received the information. At that time, Ramesh Agarwal’s wife, his son, and his daughter-in-law were in the apartment, the officer said, adding no suicide note had been found, and neither had the family complained about the death.

The 30-year-old billionaire issued a statement that reads, With a heavy heart, he and his family would like to share that their guiding light and strength, his father, Shri Ramesh Agarwal passed away on 10 March. He said his father lived a full life and inspired him and so many of us, every single day.

He further wrote, His death is a tremendous loss for their family, adding that his father’s compassion and warmth saw them through their toughest times and carried them forward. His words will resonate deep in their hearts, he added. He requested everyone to respect their privacy in this time of grief.

The tragic incident was reported three days after Agarwal got married to Geetansha Sood, the director of Farmation Ventures in New Delhi. Ramesh Agarwal was last seen at a wedding reception of his son on March 7 at the five-star Taj Palace hotel in Delhi.

The high-profile ceremony was attended by several leading figures including Union Finance Minister Nirmala Sitharaman, Delhi Chief Minister Arvind Kejriwal, Softbank chairman Masayoshi Son and Paytm founder Vijay Shekhar Sharma, among others.

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Adani-Hindenburg row: Supreme Court orders SEBI to finish probe within two months, sets up independent expert panel

Released on January 24, the Hindenburg Research report claimed “brazen accounting fraud” and “stock manipulation” by the Gautam Adani-led group.



Gautam Adani

The Supreme Court on Thursday ordered SEBI to complete the probe into the Adani-Hindenburg row within two months. The Top Court also set up an independent experts committee which will be headed by its retired judge Abhay Manohar Sapre.

The other members of the panel include Nandan Nilekani, KV Kamath, OP Bhat, JP Devdhar, and advocate Somasekhar Sundaresan who have been appointed by a bench comprising CJI DY Chandrachud, Justice PS Narasimha, and Justice JB Pardiwala.

The Apex Court observed that the cases concern the loss of investor wealth over the past few weeks due to a massive decline of Adani group companies following the Hindenburg Research report asked SEBI to examine if there was a violation of market regulations, short-selling norms or stock price manipulation. On February 10, the Court directed the SEBI to suggest measures that could be implemented to protect Indian investors from market volatility.

Read Also: Landmark Supreme Court verdict orders new mode of appointment of Election Commissioners

On February 17, the Supreme Court decided to constitute an expert committee to inspect if the regulatory mechanism needed to be strengthened to protect Indian investors from market volatility showed in the Hindenburg Research report on Adani Group.

Earlier, the bench had refused to accept the names put forth by the Central Government in a sealed cover for inclusion in the proposed committee. The Top Court had said it will select the experts and maintain full transparency as it would amount to a government-constituted committee if they take names given by the government.

Released on January 24, the Hindenburg Research report claimed “brazen accounting fraud” and “stock manipulation” by the Gautam Adani-led group.

Although the report was rejected by the conglomerate as unresearched and maliciously mischievous, it sparked a massive roar and political debates on social media which led to the firm losing over $120 billion in days and forcing the cancellation of a Rs 20,000 crore secondary share sale.

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Latest business news

Will the gaming token rebound?



Video Games

Since its all-time high in May, the smooth love potion token’s (SLP) price has dropped by over 80%. Is there hope that the SLP coin price will recover or will it keep losing value? This article looks at the current status of the project, the most recent information regarding SLP coin, and some forecasts regarding the coin’s future value of one of the most famous collectibles card game.

SLP creates an in-game economy on Axie Infinity

Gamers in the Axie Infinity world can win the smooth love potion token (also dubbed a “small love potion”) as a reward for their efforts. SLP is indeed an ERC-20 coin, and the blockchain on which Pokémon-inspired Axie Infinity operates is Ethereum’s. To create the non-fungible tokens (NFTs) known as Axies, which can be traded with other participants in the Axie Infinity Marketplace, players must spend SLP. Those who wish to participate in the game must first acquire some Axies. The number of SLP tokens that can ever exist is unrestricted.

The game’s meteoric rise in popularity has spawned a “scholarship” model, wherein “managers” lease the Axies to “scholars,” who play the game professionally and use them to make money.

As the source code for Axie Infinity is freely available, third parties can use the game’s art and genetic data to create their own games and experiences.

According to DappRadar, Axie Infinity, an NFT collection released in 2018 by gaming company Sky Mavis, has eclipsed CryptoPunks, among the first big NFT collections released in 2017, in terms of total traded volume, with over $2.84 billion compared to $1.56 billion for CryptoKitties.

Between July 2020 and April 2021, the value of one SLP token was worth between $0.0095 and $0.01. In a short amount of time, it climbed to a peak of $0.4191 as of May 1 before rapidly falling to its previous low of $0.1477 on May 12.

The price jumped and fell back two times more in May, increasing volatility. In June, SLP traded at $0.011, but by July, it had recovered to $0.4088. As of September 21st, the price had fallen to $0.0553, and throughout the month of October it fluctuated between $0.05 and $0.10. The price of one coin was $0.0696 as of November 1st, when this article was written.

On September 23rd, developers reduced the AXS cost from 2 to 1 and increased the SLP cost from 600 for breeding a single Axie to 6,300 for breeding six Axies. The Axie Infinity website states that the fee was changed in comment to a growth slowdown due to worries over a disparity in the rate at which SLP tokens were being minted and burned everyday, large volatility in the breeding fee because of fluctuation in the value of AXS and smooth love potion, and the increase in AXS to 80% of such breeding fee.

Prolonged success of the SLP,  the Axie economy will thrive if more people start playing Axie Infinity, if there is increased demand for Axies, and if the play-to-earn concept receives outside support.

Sky Mavis is working on a DEX for Axie Infinity’s Ronin, a sidechain connected to the Ethereum network, so that users may conduct transactions without incurring gas costs. The new fighting system they are creating will debut an Axie Infinity game demo before any financial choices are made.

The designers are considering options for handing over control of the Axie Infinity economy to “intelligent devices or informed users of the Axie network.”

So, what would some experts anticipate the price of an SLP token will be in the future?

Do you anticipate a rebound of price for SLP tokens in the near future?

Somewhere at time of writing, the technical analysis of SLP’s price on CoinCodex was pessimistic, with the token trading at $0.0969. Only three oscillator indicators were producing positive signals, compared to twenty-three that were bearish. CoinCodex forecasts that the price of the smooth love potion token will fall to $0.0642 on November 6th.

Based on their analysis of historical data, the analysts at Wallet Investor estimate that the price of SLP will fall from its current level of $0.07 to an average of $0.0073 by the closing time of the year. It predicted that the price will stay below $0.01 throughout 2022, averaging $0.0098 by year’s end. The site anticipated that by 2025’s conclusion, SLP’s price might have fallen to about $0.0085.

But DigitalCoin remained optimistic about SLP’s long-term prospects, projecting that the token’s average price would increase to $0.1207 in 2022 from $0.1014 in 2021, and then to $0.2125 in 2025. The site also estimated that by 2028, the average price of SLP might be $0.3213, with a high of $0.3435.

Additionally, PricePrediction’s SLP long-term prognosis was optimistic, with the average price predicted to increase from $0.35 throughout 2021 to $0.48 by 2022, $1.52 in 2025, and $9.08 throughout 2030. Be aware that crypto remain extremely unpredictable, making it tough to anticipate how much a coin will be worth in a week or even a month. As a result, analysts are fallible and often provide inaccurate forecasts.

Prior investing money, you should perform your own study and think carefully about the market’s current state, as well as latest events, fundamental and technical analysis, and professional opinion. Also, only put up money that you can manage to lose.

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