Posts filed under ‘change’

Jio – An Audacious Gamble or Bold Game-Changer ?

Our last post mentioned, “roll out of 4G LTE and imminent data price wars” in anticipation of the Reliance Jio launch. And, a couple of days before we posted the infographic, Jio opened up their ‘freedom offer’, which was restricted earlier, to everyone ; it’s now probably becoming the ‘welcome offer’.


jioplansMy interest in Jio was piqued the moment I saw tweets with screenshots, especially this one, of the data plan from ANI_News, which was live tweeting the AGM.  The reason was my current mobile plan. I use a Rs. 1,299* plan that my current mobile operator offers (with a discount of Rs.783, they call it a 3G promo offer) for which I get, “299 minutes of free talk time”, “200  free local sms” and “1GB data” on their 3G network. My primary reason for choosing this plan was the data pack. I calculated that I needed about 1 GB of mobile data for on-the-go occasions and for everything else, there was my unlimited home wi-fi of which I consume about 6-8 GB of data on my phone every month. Now, with the Rs.499-M plan of Jio, which is less than half of my current mobile plan, I can get 4x (and more) the data at 10x speeds. What’s more, I can do away with my home wi-fi connection! The only thing that stopped me from going in for a Jio connection earlier was that my mobile phone (Oneplus One, running CyanogenMod) wasn’t a device originally listed in their device FAQ.

jiolaunchThe moment the phone compatibility issue was taken care of with the Jio4g voice app, I was in the queue for a Jio SIM. The Aadhaar card based activation was a breeze and I had the Jio SIM about 30 minutes later – most of which were spent standing in the queue. Barring the face-to-face interaction with the Jio representative at the store, experience with Jio at other touchpoints hasn’t been satisfactory. I couldn’t get through to the Jio tollfree number easily to enquire about the compatibility of my phone on their network. When I did, I had to wait about 20 minutes and then talk to an untrained customer care associate who asked me what the, “brand name and model was for a Oneplus One” (even the rep at the store wasn’t that clear, all he said was, “if you’ve got an offer code on MyJio app, the phone works”).  Activation took about 3 days since the day I got the SIM, and I got to know about it only after another call to the tollfree number because the activation SMS didn’t reach me.

Having used the Jio network for almost a day now, the overall usage experience is nothing great to write home about. I couldn’t place any outgoing calls to numbers on other networks barring Jio ones and an MTNL landline. Calls from other networks, including MTNL, to a Jio number don’t go. While I could receive SMSes on the Jio number, the ones I sent out weren’t received on numbers on other networks. The much touted 4G data speed too wasn’t in sight. I was getting download speeds ranging between 60-500 kbps. There are also other minor niggles in the app which will hopefully be ironed out soon – the Jio4gvoice app is always on, draining the battery more than necessary and I found the 4g connection drops when I am on a wi-fi network.

While there is bound to be some confusion, delay and a few niggles with a new launch – especially one with such grand objectives , there are a few things that are a complete master stroke by Jio…

  1. Free welcome offer of 3 months (unlimited calls and internet):
    • Though they haven’t lived up to their promise of “5 minute walk-out-working” Aadhar based signup, people are willing to wait days for activation because everything is free as of now
    • It allows Jio to stress test their network with a lower number of users at higher usage before they ask more people to pay-up for less usage in about 3 months
    • If these users are delighted with the network (in all likelihood they’ll be, at least with the data network), the word of mouth they’ll generate is going to a huge marketing push
  2. Not porting numbers right now:
    • Though the FAQs say you can port, they aren’t doing it right now (or rather the Jio rep I met in the store told me so). Imagine the additional headache of training their entire team to answer additional porting questions from customers. Coordinating porting with other telecoms and then intimating date and time of porting to new customers. Worst still, service disruptions during the porting process lasting hours making thousands (or lakhs) of customers angry
    • I suspect, this is also probably forcing customers that are unwilling to let go of a number they’ve had for ages, to use Jio as a second network more for data than voice (and they have an “activate data only” option as well).
      • As an offshoot, in the near term, demand for low cost dual sim 4G phones is probably going to hit the roof
    • With the data from those using voice on Jio, Reliance can negotiate better with incumbents for more interoperation points and lower charges. Thereby providing better voice experience by the time they launch paid services in January 2017. (Read more about it here: “Jio supporting their demand for PoIs for 22 million users quoting 50 million call failures”, “TRAI set to reject higher interconnection charges from telcos”)
    • The other thing which I suspect is going to happen is that while Reliance Jio has full visibility of which networks people are coming from or going to switch from (thanks to the data they are collecting during the signup), the telecom operators are in the blind as to how many of their existing users are trying out Jio. Come 1st January, the blindsided operators, might lose millions of subscribers at one go.
  3. Possibly converting a whole segment of feature phone / pre-paid users to smartphone users :
    • This is just a hypothesis based on observations of those in queues at a few Jio stores. If the free voice calls and free SMS lures enough of those using features phones on pre-paid cards towards smartphones, and if they experiment with downloading music and video and are satisfied with the experience, and if a sufficient number continue on the Jio network after Jan 1st, then smartphone usage would have penetrated a whole new segment. Three big Ifs, I recognise, but the combination has the potential to be a game-changer.
    • Of course, a large chunk of these users may turn out to be shrewder / more value-conscious than we give them credit for and may stop consuming data for entertainment once they have to pay for it. They might yet continue with Jio for voice calls, in which case though Jio would have succeeded in switching users from competing networks, the task of changing their usage behaviour and increasing ARPUs would still remain. Worst case, if the voice connectivity on Jio networks is poor (as it is currently) , they may switch back to their old networks and it’ll be a bet gone horribly wrong – the mother of all promotional offers, one that induced a lot of free trial, but generated little conversion or loyalty.
  4. Having to install MyJio + Jio4gvoice apps to generate offer code prior to getting a SIM:
    • Even before Jio gives out the SIM, they have access to pretty much everything on a prospect’s phone – read and modify contacts, call log, calendar, sms, location – via this placeholder of an app called MyJio. Add Jio4gvioce, they can have everything else from your phone – identity (personal and device), camera, media (photos and everything else on your phone and sd card), microphone. Not many users in India are educated or knowledgeable about how much data an app can access and transmit.

Anyway, returning to our last post…

  • Price wars are imminent: Airtel has already cut prices. BSNL announced that it will match Reliance “tariff-by-tariff”. Vodafone and Idea are yet to announce their plans.
  • Mobile data consumption is set to explode: In the previous post, we mentioned that there are, “33.9 Million mobile users (~11% of total mobile internet users) who consume over 2 gigabytes of data per month”. Now, Reliance Jio claims, ‘the average monthly data consumption per user has exceeded 26 GB’ in April-June quarter and they had, ‘over 1.5 million test users’ even before the test launch.  That’s a 13x jump in average data consumption by a smart phone user! That might be the best case of course, but considering that one gets 4GB of daytime data and unlimited night time data over mobile networks and 8 GB over Jio public wi-fi hotspots, even in the Rs. 299 (pre-paid) and Rs.499 (post-paid) plans, these averages aren’t going to hold for long.  This might be the stimulus the telecom industry needs during a time when the average data ARPUs are falling  ( as data prices have largely remained constant while average ARPUs have been falling, my hypothesis is that new users being added aren’t consuming as much data).
  • Collateral damage – voice calls: There has been much acrimony already between Reliance and other operators. Reliance Jio has accused incumbent players like Bharti Airtel and Vodafone of not releasing sufficient inter-connection ports to terminate a voice call in another network (news report 1, 2). I think it’s a moot point because, eventually, people using Reliance Jio (or other networks matching Jio’s data prices) are going to be doing a lot more of VoIP and video calls.  Operators are not going to choke on incoming voice as they are currently claiming, they are going to choke on incoming data.
  • Collateral damage – entertainment apps: The SOP 5 with the Jio SIM is, “Install Jio Apps” and the MyJio app installs a Chat, Cinema, TV, Music, Magazine, News, Storage/Drive, Money, Fashion app. My hypothesis is all the lesser used or upcoming or limited content or me-too apps in these domains are going to really find it difficult to survive. I also think DTH operators are going to suffer a bit. I definitely don’t find it worthwhile to pay for a big bundled pack every month when I view only 1-2 hours of TV a week. If I can access those few shows online, I am definitely going to cast them on my TV and disconnect my DTH.
  • Data services as the imagery drivers: We also mentioned, “Indians are still more concerned about voice quality than data services” and that, “among smart phone users elsewhere, data speed is considered to be the most important factor in determining both network performance and satisfaction with an operator”. India is going to catch-up to this paradigm soon. The provider who has better data network and app content is eventually going to win and Reliance Jio has already built a huge lead in it.

The last time, Reliance launched a mobile network, it brought the voice prices down. Hope they do it for data now. All in all, exciting times ahead both for users and watchers.

By,

Ravindra Ramavath

 

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September 13, 2016 at 8:38 am 1 comment

India’s Demographic Dividend and Education

In this post last year, we’d looked at the composition of the increase in India’s population from 2001 to 2026 and seen that nearly 50% of all births between 2001 and 2026 will be in 7 states – Uttar Pradesh, Rajasthan, Bihar, Jharkhand, Uttaranchal, Madhya Pradesh and Chhattisgarh. One of the points we’d wondered about in that post was whether good quality education is and would be available to these children. The infographics that follow share some basic information about the supply of education; we’ll share information on the quality of available education in a subsequent post. Till then, to whet your appetite on the topic of quality, here’s a link to a article from the Mint on the available infrastructure and quality of education in Bihar.

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  • Ravindra Ramavath

April 3, 2014 at 5:50 am Leave a comment

Colors of India – Part 1

 

Wishing all our readers a very Happy Holi.

Holi inspired us to think of the different colors of India and how leading brands are interpreting and highlighting them. Brands are depicting evolving India through its different interpretations. While the messaging is different, the underlying theme is highlighting the different aspects that make India India.

Part 1 of this series explores how companies are employing the social change approach for brand building. While it has been a popular brand-building method abroad for over a decade, the trend has only picked up recently in India.

Garnier Men launched a social initiative “PowerLight a Village” in conjunction with Project Chirag. The initiative is aimed at lighting thousands of households across India that are yet to see any electricity through solar power.

 

Similarly, last year it was Stayfree, which addressed several problems faced by women through its Stayfree Women for Change campaign in association with Unicef. It addressed issues like anemia, dropping out of school and lack of general hygiene and health facilities.

Click here and here for more ads from the series.

 

Over the years, Jaago Re by Tata Tea has become a credible platform for catalyzing social change through its social awakening ads. In the first phase of the campaign, efforts were directed to involve the youth in the voting process. In its second phase, it embarked on its anti-corruption drive, beginning with its Aaj se khilana bandh, pilana shuru’ campaign. Its most recent ad is about creating awareness amongst women from the upper strata of society about the power of voting through the Power of 49 campaign.

 

What we love about these ads is the link between the brand name, the benefit it offers and the social initiative it is associated with. Love the ideas and the execution.

 

  • The Escape Velocity Team

 

P.S. Stay tuned next week for part 2 on this series on how brands are bringing out different shades of India.

March 20, 2014 at 5:36 pm Leave a comment

Beauty ‘saaluns’ in villages – a sign of change

A few months ago, during a CREAM (Certificate in Rural Enterprise Administration and Management) training session for micro-entrepreneurs in rural Bihar, we enquired about the professions of each. Turned out that each of the three women taking the course aced at multi-tasking ; apart from managing the house, each held down two other occupations. My first reaction was amazement at the amount of work that they packed into their day, but later I was struck by the fact that two out of these three women ran beauty parlours (or as they pronounced it, ‘saaluns’) out of their homes.

We asked these ladies which treatments their customers went in for and it was more than just hair-cuts – facial, eye-brow threading etc. In villages in Bihar ! So beauty consciousness is increasing not just in urban India, but in rural India too.

This article from the Mint also mentions this trend, albeit in passing. This article, from the Mint again quotes Mr. C.K.Ranganathan, Chairman and Managing Director of CavinKare, “The rural consumer has become more beauty conscious and is willing to spend more on personal grooming.”

Wonder which are the companies benefiting from this trend ? and whether they are using these ladies who run beauty parlours from their homes as influencers ?

We’ll try to dig deeper into this topic with time, so keep visiting this blog for more information on the topic.

  • Zenobia Driver

February 11, 2014 at 10:32 am Leave a comment

Updates

In Jan of this year, we’d written this post about the implications of India’s demographic dividend.

One of the things I’d wondered about in this post was the supply of quality education for young children, especially in the 7 states where almost 50% of the births during 2000-2025 will occur. This article from the Mint gives us an idea of the current state of education infrastructure in Bihar, one of the 7 states.

One of the implications of the change in India’s demographic profile is the change in the age-profile of voters across the country. Recent data released from Census 2011 shows an interesting trend. Read this article from the Mint to see why first-time voters are a critical constituency in all states. As the article mentions, ‘a whopping 47% of eligible voters in next year’s national election will be aged 35 or below’, a fairly significant chunk for any political party to target.

Collated by,
Zenobia

September 11, 2013 at 11:42 am Leave a comment

A different (and less heard) perspective on the Food Security Bill

There’s been a lot of sound and fury expressed in various media about the recently passed Food Security Bill. Most of the articles that I’ve come across have bemoaned the bill, the coarse populism and the hollow economics at the heart of it ; few have actually supported it, fewer still with simple facts and cogent reasoning.

Recently came across an news article that supported the bill and gave a few facts; coincidentally, later the same day I read a blog post along somewhat similar lines but with much more data. Links to both given below :
Click here to read the news article by Anil Padamanabhan, and here for the blog post by Richa Govil.
(Disclaimer : Richa is a friend, one whose writing I like and often quote on this blog, or post in entirety.)
  • Zenobia Driver

September 4, 2013 at 7:42 am Leave a comment

Technology – Age No Bar

A few months ago we ran this post on how toddlers are adapting to the latest technology and how it is changing their interaction with other common things.

But it is not only the young ones who are adapting but also the elderly, especially so with the arrival of grand children (or in some cases, great-grandchildren) in their families.

An-elderly-old-woman-uses-iphone

Example A, 83 year old great-grandmother of 4 toddlers now, lives in Mumbai with her family spread across Dubai, Europe and the US. When she first became a great-grandmother 5 years ago, she switched from a regular Nokia phone to a Blackberry “so that my grand daughter in Dubai can send me pictures everyday over BBM”… not only did she pick up the lingo, but also familiarized herself with using it very proficiently, and loving the fact that now she could not only get her great-granddaughter’s pictures but also “check updates on the rest of the family through BBM updates”.

Two years after this, she bought an i-Pad to “…. to Skype with my growing babies…. how else would they be able to see me and hear me… I tell them stories and sing songs to them and they love it… I love seeing their reaction.” Last year, she was mighty impressed with her daughter’s iPhone5, and decided to move from Blackberry to iPhone5 because “all my grand children have now moved from Blackberry to iPhone, they are all on What’s App now, no one BBMs, so I thought why not move myself. Plus iPhone allows me to Facetime with them all instantly.”

Moving from a Blackberry to an iPhone is not always easy, the interfaces and interactions are completely different and she always manages to surprise me with her willingness to try and readily adapt new technology.

 

Example B, 65 year old grandmother to a 2 year old now, lives in Mumbai, but daughter and grandchild live in Dubai. She only got a phone a couple years ago, a regular no-fuss Nokia, only on the insistence of her daughter who worried about her. But as her grandchild was growing up, she felt the need to be in touch, so she learnt to use a computer and found it very cumbersome and complicated, but still managed to somehow use Skype after some struggle with the poor internet connections, high start-up times of computers and the need to coordinate times with the grandchild and daughter to actually talk over Skype. Frustrated with this, she decided she needed an easier way to be able to see her grandchild when she wanted, so she went to the market on her own, explained her problems to the mobile dealer and came home with a fancy new Samsung phone, with all requisite apps downloaded and ready to use! Surprise surprise to her daughter! She now uses What’s App very well and is happy to just get photos and video clips of her grand child instantly. She recently self-taught herself to record audio and video clips herself and send them to her grandchild as well, and she is mighty proud.

 

Example C, 58 year old who recently became a grandmother, in the past always argued with her children about buying her a simple phone when they’d get her phones with a camera or with a radio or with a touchscreen, etc. But as soon as she had spent one month with her granddaughter and it was time to go back home, she knew she had to find a way see her grand-daughter when she pleased. So she asked around amongst her friends and after having figured everything out, asked her son to get her an Android phone! Android phone! Son was shocked to know that she even knew that there were Android phones, leave alone what an Android phone was!!! Promptly she asked for What’s App to be downloaded on to it and voila! she could get pictures of her granddaughter on her phone. Not only that, now she can proudly show her pictures to her friends, family, trainer, beautician, anyone who asks, cause it’s right on her phone!!

 

I don’t know if its the love and affection that a grandparent feels towards their grandchild that has made them adapt to new technology, or whether we owe it to the developers who’ve created interfaces which are so simple to adopt and so intuitive that even people, especially women who’ve hardly ever used calculators and computers in their prime, are so quickly and deftly adapting them.

 

  • Roshni Jhaveri

May 6, 2013 at 6:46 am 4 comments

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