English हिन्दी
Connect with us

Latest business news

The Jio effect

Published

on

Reliance Jio chairman Mukhesh Ambani announces the extension of its free 4G services till March 31 under the Happy New Year Plan in Mumbai in December

[vc_row][vc_column][vc_column_text]With its subscriber base crossing 100 million and their data usage close to that of the US, plus a fresh offer of sharply discounted prices, Mukesh Ambani’s network has disrupted the Indian telecom market. The industry needs to recalibrate and now

By Sujit Bhar

Mukesh Ambani’s Jio is a disruptive network in the Indian Telecom firmament. On February 21, the Reliance Industry chairman, who also heads Jio, revealed three very important figures. First, the network’s subscriber base has now crossed 100 million, a milestone reached in a record time. Secondly, over 100 crore gigabytes of data has already been consumed by its subscribers.

The third was another huge marketing gimmick, regarding Jio prime. Said Ambani: “All customers who subscribed to our service on or before March 31 can enroll in the Jio prime membership for a one-time fee of Rs 99. Prime members will be eligible for all the unlimited benefits availed during the introductory offer for another 12 months till March 31, 2018, by paying a fee of Rs 303 per month.”

The announcement was a big step towards consolidating an even larger subscriber base within a given time-frame. This could change the cost-analysis of all existing telecom network providers and promises to provide connectivity that might be in the region of some developed nations.

The problem, of course, is of assured connectivity, with telecom towers being in short supply for the new network of the largest private corporation in the country. That is something that will need solving. There is another problem brewing, in the quick amalgamation of different networks, gearing up to fight the mega-offensive from Reliance.

Not that Ambani is not aware of all this. Said he: “We will monitor all plans announced by other operators across the country. We will match all these and will provide 25 per cent more data than anyone else. Our solemn promise is to offer better plans at best price.”

The existing scenario

What was the existing scenario in which such a disruptive situation emerged?

According to the Telecom Regulatory Authority of India (TRAI), till January 2017, India “was the world’s second-largest telecommunications market… The deregulation of Foreign Direct Investment (FDI) norms has made the sector one of the fastest growing and a top five employment opportunity generator in the country. The Indian telecom sector is expected to generate four million direct and indirect jobs over the next five years according to estimates by Randstad India”.

The bigger news was about market projections. Says TRAI: “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 Compound Annual Growth Rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC.”

The forecasts match the Jio offerings. It says: “India is expected to have over 180 million smartphones by 2019, contributing around 13.5 per cent to the global smartphone market.”

That isn’t all. “According to a report by leading research firm Market Research Store, the Indian telecommunication services market will likely grow by 10.3 per cent year-on-year to reach US$ 103.9 billion by 2020,” says the TRAI report.

Accepting the huge market potential, what was the telecom companies’ market share till end of last calendar year?

The following graph (courtesy TRAI), makes it clear.

Pie chart on market share

Pie chart on market share

Idea (16.9 %) has now tied up with Vodafone (18.16 %) to form a block (total 35.06 %), while Reliance Infocomm (7.68 %) has tied up with Tata Telecomm (4.7 %) to garner a 12.38 % market. The largest so far is Bharti Airtel at 23.58 percent of market share. Jio has butted into that, starting at just 6.4 percent.

Future market

The overall subscription data (TRAI) makes things clearer.

Subscription data table

Subscription data table

Jio isn’t just a disruptive force; it has the potential to push open the overall market and force-expand it breadth-wise, incorporating the friendly Narendra  Modi government’s digitization drive.

Tomorrow will be another day, not quite like yesterday and certainly way beyond today. This is the accepted leapfrogging method that India has been adopting for a long time in this field, and reaping benefits.

We must remember Mukesh Ambani’s recent comment about H1B restrictions in the US. He had said that this could be blessing in disguise for Indian IT companies, because they would then have time to look back into the domestic market where opportunities abound.

Hugely disruptive moves such as Jio’s are timely interventions. The industry needs to recalibrate.[/vc_column_text][/vc_column][/vc_row]

India News

Google announces country-specific domain names for its search page

This transition to a centralised domain may help Google optimise AI performance in delivering relevant search results.

Published

on

In a significant move aimed at unifying its search experience, Google has announced plans to phase out country-level domain names, such as google.ng for Nigeria and google.com.br for Brazil. Instead, the tech giant will redirect users globally to a standardised domain, google.com. This decision aligns with Google’s ongoing effort to enhance search functionality and accessibility, building on the improvement in local search capabilities introduced in 2017.

In a recent blog post, Google explained that it will begin redirecting traffic from these country code top-level domains (ccTLDs) to google.com. This transition will be implemented gradually over the coming months. Users may be prompted to adjust their search preferences during this process, as the company works to streamline the user experience.

“Historically, our approach to delivering localised search results relied on ccTLDs,” Google stated. “However, our capability to offer localised experiences has evolved significantly, making these distinctions unnecessary.” The company reassured users that the core functionality of its search platform will remain unchanged and that compliance with various national regulations will continue.

This initiative reflects Google’s commitment to improving how search results are tailored to individual users without the need for separate country-specific domains. While the official rationale emphasises enhancing global user experience, some industry experts speculate that the change may also be motivated by a desire to better integrate artificial intelligence (AI) into search results, potentially leading to reduced operational costs.

Google employs AI Overviews, a tool designed to aggregate information from a broad range of online sources to provide concise responses to user inquiries. This transition to a centralised domain may help Google optimise AI performance in delivering relevant search results.

Overall, as Google implements this shift, users can expect a more unified search experience. While changes in browser addresses may occur, Google emphasises that the way search operates and its compliance with national laws will remain consistent. This strategic shift signifies Google’s ongoing efforts to adapt to the evolving digital landscape and user needs globally.

Continue Reading

India News

In HUL vs HCL defamation case, Delhi HC orders take down of Lakme sunscreen ad disparaging Derma Co

Honasa, in its plea to the Delhi High Court, argued that HUL’s claims are misleading and disparage competitors, damaging their reputation. In retaliation, HUL filed a countersuit against Honasa in the Bombay High Court, escalating the corporate feud.

Published

on

A legal showdown between Honasa Consumer Ltd. (HCL), the parent company of Mamaearth, and Hindustan Unilever Ltd. (HUL), which owns Lakmé, reached the Delhi High Court this week, with both FMCG giants filing defamation lawsuits against each other. On Thursday, the court ordered HUL to pull its current Lakmé sunscreen advertisements, prompting the company to agree to revise its campaign by removing references to “online bestseller” and altering the depicted packaging colours.

The dispute centres on Lakmé’s recent “SPF Lie Detector Test” campaign, which HCL alleges unfairly targets its Derma Co. sunscreen by questioning the efficacy of rival products.

In the ads, HUL claims that some “online bestseller” sunscreens, marketed as SPF 50, provide protection closer to SPF 20, based on in-vivo testing data from the past decade. While no brands are explicitly named, visuals juxtaposing yellow bottles—resembling Derma Co.’s packaging—against Lakmé’s sparked Honasa’s ire.

Honasa, in its plea to the Delhi High Court, argued that HUL’s claims are misleading and disparage competitors, damaging their reputation. In retaliation, HUL filed a countersuit against Honasa in the Bombay High Court, escalating the corporate feud.

The controversy erupted when Ghazal Alagh, co-founder of Honasa, took to LinkedIn to criticise the FMCG sector’s lack of competitive drive, suggesting that legacy brands like HUL have grown complacent. Her comments were seen as a direct jab at Lakmé’s campaign, which challenges the SPF claims of newer sunscreen brands dominating online markets. “The industry needs fresh competition to shake things up,” Alagh wrote, igniting a public spat.

Lakmé’s campaign asserts that some top-selling sunscreens falsely claim in vivo testing—a method involving live organisms like humans or animals—while delivering subpar protection. In a social media statement, Lakmé doubled down, saying, “Certain online bestsellers advertise SPF 50, but their in-market samples test closer to SPF 20.”

Continue Reading

India News

Sensex and Nifty jump nearly 2% as US suspends additional 26% tariffs on India until July 9

Foreign Institutional Investors (FIIs) had sold equities worth ₹4,358.02 crore on Wednesday, signaling caution, but Friday’s momentum suggested a shift in sentiment.

Published

on

Indian stock markets staged a robust rally on Friday, with the BSE Sensex skyrocketing 1,310.11 points, a 1.77% gain, to close at 75,157.26. The NSE Nifty followed suit, climbing 429.40 points or 1.92% to settle at 22,828.55, breaching the 22,900 mark during intra-day trading. The surge came on the heels of a White House announcement suspending additional tariffs on India for 90 days until July 9, offering a reprieve amid global trade tensions.

The US decision, detailed in recent executive orders, pauses levies that President Donald Trump had imposed on April 2, targeting India and roughly 60 other nations. Those duties threatened Indian exports ranging from steel to shrimp, raising concerns about competitiveness in the US, the world’s largest economy. The temporary suspension sparked optimism among Indian investors, propelling gains across major sectors.

Leading the charge among Sensex constituents were heavyweights like Tata Steel, Reliance Industries, Power Grid, NTPC, Kotak Mahindra Bank, and Adani Ports. However, not all stocks joined the rally—Asian Paints and Tata Consultancy Services lagged behind, unable to capitalize on the upbeat mood.

Vinod Nair, Head of Research at Geojit Investments Limited, attributed the market’s buoyancy to the tariff relief. “The unexpected pause on US tariffs provided a much-needed breather amid global uncertainties,” Nair noted. He added that while a major IT firm’s recent results fell short of expectations, its robust order book signaled potential growth in the latter half of FY26.

The Indian markets’ performance stood in stark contrast to global trends, where fears of a US-China tariff war cast a shadow. On Friday, China escalated its trade spat with the US, hiking tariffs on American imports to 125% in response to Washington’s 145% levies on Chinese goods.

Asian markets reflected the unease, with Tokyo’s Nikkei 225 plunging nearly 3% and South Korea’s Kospi slipping, though Shanghai’s SSE Composite and Hong Kong’s Hang Seng bucked the trend with gains. European markets traded lower, while US indices had closed sharply down on Thursday, with the Nasdaq tumbling 4.31%, the S&P 500 falling 3.46%, and the Dow Jones shedding 2.50%.

Back home, the rally followed a lackluster Wednesday, when the Sensex dipped 379.93 points to 73,847.15 and the Nifty fell 136.70 points to 22,399.15. Thursday’s market holiday for Shri Mahavir Jayanti gave investors a pause before Friday’s surge. Foreign Institutional Investors (FIIs) had sold equities worth ₹4,358.02 crore on Wednesday, signaling caution, but Friday’s momentum suggested a shift in sentiment.

Elsewhere, global oil prices edged up, with Brent crude rising 0.32% to $63.53 a barrel, reflecting ongoing volatility in commodity markets.

Continue Reading

Trending

© Copyright 2022 APNLIVE.com