Emergic: Rajesh Jain's Blog

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Entries from December 2009

A Perfect Storm for Mobile Operators (Part 5)

December 11th, 2009 · 6 Comments

There are three things mobile operators can do to make VAS a larger component of their revenues and an even greater percentage of their profits. First, break down the walled garden and open up access to third party content and service providers. Combine this with an offer to do microbilling for them and pay them […]

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A Perfect Storm for Mobile Operators (Part 4)

December 10th, 2009 · 6 Comments

Mobile operators in India have long focused on voice services and new customer acquisition. I have long argued that this strategy has severe limitations since voice pricing can and has to be matched by everyone else. Thus, all it does is give one a fleeting advantage in the marketplace, and that too, for the lower […]

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A Perfect Storm for Mobile Operators (Part 3)

December 9th, 2009 · 4 Comments

Stock prices of the listed mobile operators have halved in recent times. This couldn’t have happened at a worse time. Coming up in January are the 3G and Broadband wireless access (BWA) auctions. With rules and dates having been changed frequently over the past 15 months, it does look like we will finally have the […]

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A Perfect Storm for Mobile Operators (Part 2)

December 8th, 2009 · 5 Comments

Sometime in the next few months, Mobile Number Portability will be introduced. For a mere Rs 19, a subscriber can switch operators and retain their mobile number. This will shift the battleground to the high ARPU customers, who are much more reluctant to shift to the cheapest plans.The subscriber growth and cheap voice calls have […]

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A Perfect Storm for Mobile Operators

December 7th, 2009 · 7 Comments

Wikipedia defines “perfect storm” as “an event where a rare combination of circumstances will aggravate a situation drastically.” That is exactly what has happened to India’s mobile operators. Let’s look at what has happened, and then we will look ahead to see what to expect. It all started with Tata Docomo using pay per second […]

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Blog Past: TIME Magazine on IndiaWorld

December 6th, 2009 · 1 Comment

Time magazine featured the IndiaWorld sale as part of a cover story on the Internet in February 2000. Here is an abstract: The first two years were spent convincing advertisers that an online company had genuine potential. “In a small business, there is no such thing as a small mistake,” he says. “We always knew […]

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Weekend Reading

December 5th, 2009 · No Comments

This week’s links: IDC 2010 Predictions: from New York Times. “Apple brings out an iPad digital tablet. Netbooks move upscale. And IBM buys Juniper Networks.” The Economics of Social Gaming: by Jeremy Liew. Why they are so attractive to investors. The Fall and Rise of Media: by David Carr (NYT). “For every kid that I […]

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IndiaWorld Sale: The Essence

December 4th, 2009 · 4 Comments

Today, as I look back to the same period a decade ago, it seems like it was a different era –  and a different me! I ask myself at times whether I was smart or just lucky. Perhaps, a combination of both – one has to be smart to be in the right place at […]

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IndiaWorld Sale: Valuation Question

December 3rd, 2009 · No Comments

Even today, I get questions on the valuation. I have a 2-part answer. First, there was another suitor for IndiaWorld, so it was a competitive bidding situation. Second, look at what happened to Sify stock the day the deal took place. It rose about $700 million on the day after the announcement of the acquisition. […]

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IndiaWorld Sale: Quotes

December 2nd, 2009 · 1 Comment

Here are some quotes from the press release that was issued on November 29, 1999: Ramaraj (Managing Director, Satyam Infoway) said that “IndiaWorld is a perfect fit for Satyam Infoway. Satyam Online is already a very popular portal in India with focus on purposeful browsing. In e-commerce the new joint venture with Bank of Madura […]

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IndiaWorld Sale: The Announcement

December 1st, 2009 · 3 Comments

Here is an abstract from an Indian Express article of that date (November 29-30, 1999): In one of the largest deals in the Indian corporate sector, internet firm Satyam Infoway Ltd said on Monday it has bought a 24.5 per cent stake in IndiaWorld Communications Pvt Ltd for $28 million (around Rs 121.50 crore). In […]

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