Archive for November, 2015

Launch of Reliance Jio to Boost the Sale of Smartphones

November 24, 2015

Brokerage company, Credit Lyonnais Securities Asia (CLSA) has predicted that the forthcoming launch of, Mukesh Ambaniled, Reliance Jio Infocomm will elevate the sales of smartphones in the country.

Statements of the Report

A report from the Mumbai-based company said that the share of smartphones in the entire mobile phone shipments will rise to 75% after the commercial launch of Reliance Jio. At present, it stands at 45%.In the April – June quarter of 2011, the share of smartphones was only 6%.

The report is prepared by telecom analysts, Deepti Chaturvedi and Akshat Agarwal. They mentioned that the sales of smartphones have increased as users replaced their feature phones. With the growth in smartphones, shipments of feature phones have reduced.

In the Financial Year (FY) 2014 – 2015, total mobile shipments decreased by 2% year-on-year, falling to 252 million. On the other hand, smartphone shipments increased by 58% year-on-year to reach 86 million. Currently, smartphone penetration is around 20%, while 3G penetration is just 12%.

Plans of Reliance Jio

Reliance Jio will present a fresh launch, with its services based on 4G technology. Other telecom companies in the country will overlay 4G services on existing 2G and 3G services.

The main deal of Reliance Jio is the spectrum trading agreement with Reliance Communications for 800MHz, in 12 telecom regions. This will let the company offer Voice over Long-Term Evolution (VoLTE) based services.

VoLTE is not yet introduced in China. After Reliance Jio rolls out the services in India, customers will require phones that support 4G VoLTE technology. Connectivity with the present voice networks will also be required.

At present, there are no VoLTE phones available in the Indian market. Reliance Jio is therefore planning to launch its own LYF branded smartphones, which will support its technology. The company has also inked pacts with a number of mobile phone makers to sell their smartphones.

CLSA Predictions

CLSA said it is expected that the top three telecom operators of the country will gain the maximum share.They may earn 73% of the sector’s revenue, and thrice the data revenues to reach USD 14 billion in the next three years.

The company said that revenue growth for the industry will be boosted due to data and internet services. This has been seen since the past two years and the trend will continue in the future as well. The report stated, “Over FY 2015- 2018, we expect industry revenues to grow at 10% Compounded Annual Growth Rate (CAGR) to USD 37 billion, driven by a sharp 40% CAGR in data revenues to USD 14 billion”.

It predicted that the data subscriber base will grow at 27% CAGR to 519 million subscribers by 2018. In the previous FY, the number was 198 million.

Reliance Jio’s Content Strategy

Reliance Jio is planning to stand out as a digital content company to compete with others. The main element of its digital content strategy will be content-streaming packages.

Summary

Mumbai-based brokerage company, CLSA said that the launch of Reliance Jio Infocomm Limited will boost the sales of smartphones in the country.

Reliance Retail to Sell YU Smartphones

November 17, 2015

YU smartphones of Micromax brand will now be sold offline at Reliance Retail outlets. Co-founder of Micromax, Rahul Sharma founded YU Televentures as a brand that would be sold exclusively online. Earlier, Xiaomi and Motorola too shifted to offline space, in a reversal of their online only strategy.

Reliance Retail’s Partnership with YU

YU smartphones will be sold in 30,000 retail stores of Reliance Retail, across the country. It has taken this step to add the element of touch and feel to the customer experience, a release from the company stated.

Sharma believes that Reliance Retail will play a significant role in the telecom ecosystem. The strategic partnership will enable the company to enhance the functionality of its products. He said that his company will also benefit from Reliance Jio Infocomm’s upcoming launch of the fourth generation (4G) network.

Reliance Retail’s Partnership with LG

LG had also partnered with Reliance Jio to sell its phones. It will launch two phones in the initial stage. These are LG G4 Stylus 4G and LG Spirit LTE. Reliance Retail stores will soon be selling these phones.

LG Spirit LTE is a dual sim phone that will be 4G enabled and comes with 1 GB RAM and a 1.3GHz quad-core processor. It has internal storage of 8 GB. The rear camera is of 8 MP while the front camera is of 5 MP. On the other hand, LG G4 Stylus has a larger screen and is powered by Snapdragon 410 quad-core processor. It has 1GB RAM and 16GB internal storage. The phone also supports Micro SD card for external storage. The 13 MP rear camera has a laser autofocus while the front camera is of 5 MP. The devices will be made available on all Reliance Retail outlets in the coming days.

With the latest phones, LG aims to provide a superior experience to its customers. Amit Gujral, Head of Marketing at LG Mobiles India said, “With Reliance Retail as our partner, and given its extensive network across the country we are sure that existing LG loyalists and potential LG customers who want the best will be able to own these futuristic gadgets in outlets near them.”

Reliance Jio’s Plan

Reliance Jio will also be launching its LYF branded phones to compete with a number of entry-level phones of 1 GB RAM. Reliance’s phone will come with 4G LTE connectivity and will be provided at affordable prices.

Reliance Jio will be offering its data services on Voice over Long-Term Evolution (VoLTE) and Voice over WiFi (VoWiFi) technologies to enable users to make voice calls directly through LTE or WiFi connections. Currently, only Airtel offers 4G services in India, but it does not uses these technologies.

About Reliance

Reliance Retail is the retail venture of Mukesh Ambani-led Reliance Industries. Since 2006, it has been serving millions of customers including farmers and vendors. Reliance Retail guides 25 lakh customers every week.

Its parent company operates the biggest refinery in the world in its complex at Gujarat. It accounted for USD 4.3 a barrel premium on Gross Refining Margin (GRM) in the September quarter results and is set to record further growth.

Summary

Reliance Retail will sell YU brand, LG G4 Stylus and LG Spirit LTE in its outlets.

Reliance Foundation to work on reducing Neonatal Deaths

November 6, 2015

The philanthropic arm of Mukesh Ambani-led Reliance Industries, Reliance Foundation will be working on reducing the number of infant, maternal, and neonatal deaths. The foundation has formed an alliance with four other companies and development segment organizations to work for this cause.

Project Aasman

The project is named Aasman and was launched in New Delhi. For this project, Reliance Foundation is associating itself with the Bill and Melinda Gates Foundation, Tata Trusts, the United States Agency for International Development (USAID), and pharmaceutical major, MSD India.

These organizations will strive to provide the best facilities and quality healthcare under the five pillars of the government’s Reproductive, Child Health, Newborn, Maternal, and Adolescent Health Programs. They will also work in association with the National Health Mission and the Central and State governments.

Neonatal death refers to the death of a child within 28 days of birth, while infant death means the death of a child within one year of birth.

Views of Nita Ambani

Founder and Chairperson of Reliance Foundation, Nita Ambanisaid, “I believe that every life must be cared for and we should strive for a healthy India, where no mother is lost to childbirth and every child can live life to his or her fullest potential.”

Ambani feels that the aim will be achieved through firm, strong, and sustainable partnerships. She also said that the foundation feels proud to be a part of the alliance. Together, these organizations share great synergies. They are dedicated towards the same passion and commitment. They want to overcome huge national challenges on a mission mode.

The partnership will not be restricted to financial fronts. It will enhance the institutional experience, expertise, and shared commitment,so that they work for the betterment of mother and child survival in the country, she added.

Neonatal and Maternal Mortality in India

Being the second highest populated country of the world, India sees more than 3 crore pregnancies, annually. Out of these, only 2.7 crore women reach the delivery stage. More than 56,000 mothers die in less than two days of delivery. These two days are very important for the child as well. Half of the total neonatal deaths happen in the first 48 hours.

The states that have the highest neonatal mortality, maternal mortality and infant mortality are Uttar Pradesh, Madhya Pradesh, Rajasthan, and Bihar.

Reliance Foundation

Reliance Foundation is the biggest Corporate Social Responsibility (CSR) initiative of any private conglomerate in the country. Its annual spending is around INR 750 crores. Founded in 2010, the foundation has touched the lives of 40 lakh individuals in over 5,500 villages across the country.

In the health sector, the foundation strives to provide world-class facilities and treatments to patients. It already works for women and child health to spread awareness on various health concerns like anemia, menstrual hygiene, child immunization, reproductive health of women, cervical cancer, and sanitation of adolescent girls, among others. It also counsels and educates mothers on issues like malnutrition in children. Over 11,500 women and children in 124 villages have benefitted from Reliance Foundation’s health camps.

Summary

Reliance Foundation along with other organizations has launched a project to work for reducing neonatal, maternal and infant mortality rates in India.

Reliance Jio Media to Roll out its Cable Television Business

November 2, 2015

Reliance Jio Media had obtained a provisional license to operate as a Multi-System Operator (MSO), from the Ministry of Information and Broadcasting (MIB), in June 2015.An MSO is a cable operator who obtains programming services from a broadcaster. It then transmits the services to local cable operators or directly to a number of customers. Reliance Jio Media is now in the final stages of rolling out its cable television business across Digital Addressable System (DAS) in Phase 3 areas.

 

MSO Business of Reliance Jio Media

 

Reliance Jio Media is a subsidiary of Reliance Jio Infocomm, which is the telecom arm of the Mukesh Ambani-led Reliance Industries. It had applied for the license in January 2015, with the aim to make use of its fiber-to-the-home connectivity and offer varied services like television channels, telephone, high-speed internet, and wireless access.

An official of Reliance Jio clarified that the company has a focus on digital television and distribution, as much as it has a focus on 4G and broadband services. He stated that the MSO business has been important for the company since the beginning and the company will remain dedicated to it.

Reliance Jio Media has selected the cities where it will first roll out its MSO services. The company will begin its operations in 15 cities in the final quarter of Financial Year 2015 – 2016. It aims to extend the services to more than 100 cities by 2018.

Reliance Jio Media’s MSO business is headed by its Chief Executive Officer, K. Jayaraman.Jayaraman, who formerly was a Head at Zee Entertainment Enterprise, was appointed at Reliance Jio in February, this year.

As an MSO, Reliance Jio Media will offer services like Standard Definition (SD), High Definition, and Ultra High Definition. The company aims to lift its average revenue per user (ARPU) through these services. The official revealed that the company will adopt a model that will give sustainable results in the long run. “Having all the viewing experiences for consumers is an important factor and we won’t compromise with that”, he added.

Reliance Jio Media has signed partnership deals based on technology, infrastructure, and headendswith varied vendors. The company is also in talks with a number of local cable operators for broadband as well as cable partnerships. After Diwali, the company will be having a final round of discussions with local cable operators for its digital cable business. It will finalize and resolve all issues before the end of 2015.

Views of Experts

Experts from the industry say that the team set up by Reliance Jio Media has the muscle power to handle any situation. An expert said that he feels the conglomerate will leave no stone unturned for the success of its MSO business.

A senior official from a major technological company informed that his enterprise is manufacturing varied products for Reliance Jio. They share a seamless partnership and thus known that the distribution of cable TV will be on time.

Summary

Reliance Jio will be launching its cable television business across Digital Addressable System (DAS) between January and March 2016.