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However, in the last couple of days, reports began surfacing of Apple cutting sales
forecasts, and unprecedentedly dropping prices within just a month of launch (4,5).
Although, to be fair, as Conan Doyle puts it, “It is easy to be wise after the event”.
A similar market backlash has repeated itself time and again. The most popular
examples are the receptions of the iPhone 5c and the Tata Nano (6,7). This
supposedly irrational behaviour by consumers has been studied in detail by game
theorists and behavioural economists. This field was made popular by the recent Nobel
prize winning Richard Thaler of the “Nudge” fame (who wowed to spend his prize
money “as irrationally as possible”)! (8)
Putting together ideas of game theory and behavioural economics from many
distinguished researchers, one can explain this phenomenon easily:
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One plus phones began selling well in the larger global market (beyond the initial
adopters) not only because it sells value for money phones- many Chinese phones sell
equal, if not more value for money phones. One plus sells well because they
emphasise that they make little to absolutely no compromise on performance. By
buying a OnePlus, you were also signalling that you were one of the few highly
knowledgeable elite club of people who even knew of the existence of this ‘high end’
product. In conclusion, you may have a fantastic product which receives amazing
reviews, at a superb price which still may not sell. If you want to sell a product well,
give your customers a chance to boast about buying it.
BIBLIOGRAPHY
1. Beavis, G. (2018, November 07). IPhone XR review. Retrieved from
https://www.techradar.com/reviews/iphone-xr-review
2. IPhone XR review: The best iPhone value in years. (2018, November 10). Retrieved
from https://www.cnet.com/reviews/apple-iphone-xr-2018/
3. Patel, N. (2018, October 23). Apple iPhone XR review: Better than good enough.
Retrieved from https://www.theverge.com/2018/10/23/18011306/apple-iphone-xr-
review-camera-screen-battery-price
4. Mochizuki, T. (2018, November 22). Not So Big in Japan: Apple Cuts Price of iPhone
XR to Boost Sales. Retrieved from https://www.wsj.com/articles/not-so-big-in-japan-
apple-cuts-price-of-iphone-xr-to-boost-sales-
1542896625?emailToken=0a4a44f54abd0b0b878407caac5408e9sL1OsYPAHRelQpd
4A4qr3T9bk/WT5xkeDIlGft6XFSysLr0
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yT0Yrbkwzfvgtlx0A5QNDaZUgBKOYzMJaOCvzam4KGh4fKVM64RyKoDlONutJvQ0ftx
1sZKASgA Q ZR&reflink=article_copyURL_share
5. Mayo, B. (2018, November 19). Apple reportedly cuts production orders for iPhone
XS and iPhone XR. Retrieved from https://9to5mac.com/2018/11/19/apple-cuts-orders-
iphone-xs-xr/
6. Why The iPhone 5c Flopped. (2015, July 26). Retrieved from
https://www.cultofmac.com/267001/iphone-5c-flopped/
7. Ghosh, M. (2016, March 26). Ratan Tata Reveals The Reason Why Nano Failed!
Retrieved from https://trak.in/tags/business/2013/11/30/ratan-tata-nano-failed/
8. Leubsdorf, B., & Gauthier-Villars, D. (2017, October 10). Nobel Prize in Economics
Awarded to American Richard Thaler. Retrieved from https://www.wsj.com/articles
/nobel-prize-in-economics-awarded-to-richard-h-thaler-1507543046
9. (2018, November 23). Retrieved November 25, 2018, from https://youtu.be
/UZzxBbBby1I
10. Sundie, J. M., Kenrick, D. T., Griskevicius, V., Tybur, J. M., Vohs, K. D., & Beal, D.
J. (2011). Peacocks, porsches, and Thorstein Veblen: Conspicuous consumption as a
sexual signaling system. Journal of Personality and Social Psychology, 100(4),
664-680
11. Ashworth, L., Darke, P. R., Schaller, M. (2005). No one wants to look cheap: Trade-
offs between social disincentives and the economic and psychological incentives to
redeem coupons. Journal of Consumer Psychology, 15(4), 295-306.
12. Lynzee J. Murray (2018). Thrifty spending as a (paradoxically) costly signal:
perceptions of others' traits and mating patterns as a function of their spending style.
Masters thesis. Retrieved from https://etd.ohiolink.edu
/!etd.send_file?accession=bgsu1525457591695131&disposition=inline
13. Phillips, R. J. (2014, April 22). Conspicuous consumption. Retrieved from
https://www.britannica.com/topic/conspicuous-consumption
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Apple launched the latest iPhone XS, XS Max and the Apple Watch 4. What is
common among these three is the eSIM, or embedded SIM. The eSIM made its way to
India with the launch of the Apple Watch 3 cellular edition, supported only by Airtel and
Jio. The eSIM was introduced to consumers first by Samsung in its smart watch in
other parts of the world. What exactly is the eSIM, and what are the implications of the
advent of eSIMs?
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A SIM card is a Subscriber Identity Module. It contains a unique code to identify you,
and allow you to access the network. You can make calls, because Airtel/Vodafone-
Idea/Jio verified your identity, and gave you a key to unlock and use their network, they
key being the SIM card.
The size of SIM cards has continuously shrunk from a normal SIM to mini to micro and
finally to the prevalent nano SIMs today.
[https://2.bp.blogspot.com
/-2BVUwp8lqQA/W6dy3ddMQzI/AAAAAAAAWgA/Zp7AMf86iK80N-DKcs6e24pYx-
9J6cblQCLcBGAs/s1600/sim%2Bevolution.png]
Evolution of the SIM card- regular, mini, micro and nano. Image
courtesy: https://en.wikipedia.org/wiki/File:GSM_SIM_card_evolution.svg
[https://en.wikipedia.org/wiki/File:GSM_SIM_card_evolution.svg]
2 Implications
Does simply reducing the SIM size, and making it non-essential to physically insert a
new SIM card, have any major disruptive consequences? This minor modification
might as well be one of the biggest disrupters in the telecommunications space
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available. The SIM card is the only major removable component in today’s
smartphones. Most already have non-removable batteries and reasonable (IP68) levels
of ingress protection. Connected watches (Samsung Gear, Apple Watch) which can
replace mobile phones are already a reality. Who knows what else tomorrow may
bring? Connected glasses which completely do away with the need for a laptop?
Airpods which allow you to leave your iPhone behind?
One will also see a spurt in device ecosystems and bundles. You will no longer buy a
laptop from one manufacturer, headphones from another, smartphone from a third, and
a watch from the fourth. You are likely to buy a bundle of the above devices which
seamlessly work with each other. Your laptop/tablet will not be dependent on your
home wifi. They will also have cellular connectivity (likely provided by the same
provider which provides your home wifi) and will seamlessly switch technologies. There
is no more need to switch on the wifi router, or set up a personal hotspot on your
phone- everything will automatically work together.
2.2.1 Distribution
Consider the current sales and distribution channel of telcos. They have stores (own
and franchise) in most countries, where they sell SIM cards along with some devices.
In countries like India, in addition to stores, they have distributor serviced retailer
outlets which penetrate the most mofussil territories. The act of buying a SIM requires
a physical touchpoint (store/retailer) where a lot of the decision making process is
influeced. Without the need to physically buy SIM cards, there is little a store/retailer
offers. Entire sales and distribution channels are likely to be severely disrupted.
Online platforms like Google, Facebook, Amazon, website of the telco could take a
disproportionate share of sales. Whether this results in lesser or more costs is yet to be
seen. Currently the huge base of retailers, distributors and franchise store owners lack
significant collective power to influence margins. However, an Amazon or Google could
drive a hard bargain. On the other hand, not having to maintain an inventory of SIMs
and not having to incur costs on their distribution could be beneficial.
Telecom service providers will radically rethink their idea of sales and distribution
channels. Their stores may become experience centres for a different idea of Smart
Homes. The traditional retailer and distributor model may be disrupted because of the
lack of need to stock SIM inventory. A telco may directly reach out to a retailer, and
experiment with retail models like Amazon’s attempts.
2.2.2 Product
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norm of the day, Mobile Number Portability, and easy (and cheap) availability of dual
SIM phones (in some cases 3 SIM and 4 SIM phones!) have largely simulated this
environment, and so one is not likely to see a major difference.
Connected devices are proliferating. Yesterday it was only smart phones and laptops.
Today we have smart speakers, smart watches, connected TVs, fridges, headphones
and a plethora of new kinds of connected devices and sensors.
Telcos will obviously strive to give connectivity to each and every type of device
mentioned above. However, providing the backend connection may not be sufficient.
Telcos would employ other strategies to avoid becoming commoditised. In this
endeavour, the biggest asset of any telco is the copious data it has on each customer.
Telcos with their huge capital investment budgets would likely look to invest in content
to tie up with these players. Of what use is a Google Assistant powered Smart TV if it
cannot play the Iron Man series? Telcos would hence try to forge exclusive
partnerships, or maybe generate exclusive content.
In the future, you may have one plan for all your devices- your smart TV, watch, laptop,
tablet, fitness tracker, refrigerator, lights etc. These bundles are likely to increase
customer stickiness and churn, and counterbalance the ease of migration afforded by
the lack of need to physically swap SIM cards.
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times
Many creases need to be ironed out. Who will be responsible for presenting all network
options, and all price options to consumers on their eSIM enabled device without any
commercial bias? What about security implications of being able to download a SIM
card profile directly over the air?
However, eventually when these issues are sorted, we are in for a sea change. If you
thought mobile phones drastically changed your life, wait for the eSIM enabled smart
devices!
4 Bibliography
1. Google Releases The Pixel 2’s eSIM Manager Android App | Android News. (n.d.).
Retrieved 23 September 2018, from https://www.androidheadlines.com/2017/10
/google-releases-the-pixel-2s-esim-manager-android-app.html
2. Google’s Pixel 2 phones don’t need SIM cards. (n.d.). Retrieved 23 September
2018, from https://www.engadget.com/2017/10/04/google-pixel-2-phones-use-
esim/
3. Meukel, M., Schwarz, M., & Winter, M. (n.d.). E-SIM for consumers--a game
changer in mobile telecommunications? | McKinsey. Retrieved 23 September
2018, from https://www.mckinsey.com/industries/telecommunications/our-insights
/e-sim-for-consumers-a-game-changer-in-mobile-telecommunications
4. The disruptive impact of the eSIM: your relationship with your telco will never be
the same - KPMG Newsroom. (n.d.). Retrieved 23 September 2018, from
http://newsroom.kpmg.com.au/the-disruptive-impact-of-the-esim-your-relationship-
with-your-telco-will-never-be-the-same/ [http://newsroom.kpmg.com.au/the-disruptive-
impact-of-the-esim-your-relationship-with-your-telco-will-never-be-the-same/]
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What is one factor which distinguishes the first set from the second (hint: see title)? At
the risk of sounding like a left leaning conspiracy theorist, the one common factor
distinguishing the above sets of mobile phone brands is the presence or absence of an
FM radio. Consider the below points:
1. Almost every premium phone which sells well, does not have an FM radio
(Google Pixel, iPhone, Samsung Galaxy series, Oneplus phones)
2. Almost every single phone already has the FM chipset bundled in. Bluetooth,
Wi-Fi and FM come bundled in a single chipset in most cases. That means, if you
buy a phone with Bluetooth and Wi-Fi, the FM hardware is already included for
free. If you still cannot find a radio app in your phone, it means that the
manufacturer has turned it off on purpose. Why would anyone deactivate a feature
that did not cost a dime to include anyways?
3. There are reported cases of some US carriers forcibly removing the FM radio
functionality even in phones which have the feature activated (eg- Verizon and LG
V20: https://forums.androidcentral.com/lg-v20/745772-lg-v20-no-fm-radio-verizon-
get-runaround-special-help-me-if-youre-annoyed-too.html
[https://forums.androidcentral.com/lg-v20/745772-lg-v20-no-fm-radio-verizon-get-
runaround-special-help-me-if-youre-annoyed-too.html] ,
https://community.verizonwireless.com/thread/922250
[https://community.verizonwireless.com/thread/922250] )
4. If a company (for eg- Samsung) makes both budget and premium devices-
the budget device has FM radio (think Galaxy grand) while the premium device
lacks it (think galaxy S7). This defies all logic- why would you pay more to reduce
features? This seems absurd, but only until you realise that Galaxy grand has
been manufactured mostly for non-US countries and Galaxy S7 is sold
everywhere especially in the US.
After this, the American imagery and culture reaches and influences us in subtle ways
we don’t always comprehend. For e.g. watching Tom Cruise save the world with his
iPhone in Mission Impossible could subconsciously make one want to use an iPhone
too. Plus there is the image of the US being a market where only high quality products
are sold. So if something sells well in the US, it must be a good product? Hence, the
phones which do well in the US do well elsewhere too.
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Why would the US carriers do this? So that you use more data instead of the free ‘FM
radio’. AT&T made a killing due to increased data usage by the then newly launched
iPhones.
There have been efforts to bring back the FM radio, albeit unsuccessful, from
companies like the BBC (British Broadcasting Corp), organisations like the NAB
(National Association of Broadcasters) and people like the current FCC chairman, Ajit
Pai.
Signing off with the hope that everyone is a little more sensitised against these
subconscious nudges while buying their new phone.
Bibliography
AT&T Profit Surges 41%, With Help From iPhone - The New York Times. (n.d.).
Retrieved 30 August 2017, from http://www.nytimes.com/2007/10/24/business
/24phone.html?mcubz=0
Broadcom’s new real dual-band Wi-Fi chip speeds things up. (n.d.). Retrieved 30
August 2017, from https://www.cnet.com/news/broadcoms-new-real-dual-band-wi-fi-
chip-speeds-things-up/
MailOnline, B. R. G. for. (2015, April 27). The FM radio hidden in your SMARTPHONE
that few people can use. Retrieved 30 August 2017, from http://www.dailymail.co.uk
/sciencetech/article-3054299/The-FM-radio-hidden-SMARTPHONE-Mobile-
manufacturers-denying-users-chance-listen-radio-free.html
Missing FM radio on your smartphone? It might soon be available on all phones. (2017,
February 20). Retrieved 30 August 2017, from http://www.ibtimes.co.in/missing-fm-
radio-your-smartphone-it-might-soon-be-available-all-phones-716725
Ramakrishnan, N. (2015, December 15). How the Deluge in Tamil Nadu Became a
Historic Occasion for Indian Radio. Retrieved 30 August 2017, from https://thewire.in
/17338/how-the-deluge-in-tamil-nadu-became-a-historic-occasion-for-indian-radio/
Samsung explains the absence of FM Radio on the Galaxy S4 | AndroidAuthority.
(n.d.). Retrieved 30 August 2017, from http://www.androidauthority.com/samsung-
explains-no-fm-radio-galaxy-s4-192398/
The FCC wants you to be able to listen to FM radio from your smartphone - Chicago
Tribune. (n.d.). Retrieved 30 August 2017, from http://www.chicagotribune.com/bluesky
/technology/ct-fcc-fm-radio-smartphone-wp-bsi-20170219-story.html
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25th July 2017 5G: What you need to know, if you don’t
know telecom
With the rapidity with which technology improves, 3G and 4G may be history. 5G will
be here sooner than you think. 4G may have just started, however, regulatory bodies in
India are already talking of setting prices of 5G spectrum. This article is an attempt to
demystify 5G and the jargon surrounding it.
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[https://upload.wikimedia.org/wikipedia/commons/9/99/EM_Spectrum3-new.jpg]
(Fig 1, courtesy: https://commons.wikimedia.org/wiki/File:EM_Spectrum3-new.jpg)
Physics dictates that the lower the frequency of any wave, the higher/longer its
wavelength. And a longer wavelength can traverse more obstacles, travel further and
penetrate solids better. Think of it like a large ocean wave is not likely to be affected by
a moving ship, but a small ripple in the water may completely change direction, or get
subdued by the same ship. This is the same reason why Red lights indicate danger (or
stop in traffic signals)- red has the longest wavelength among all the colours we can
see.
So when you hear terms like 850 Mhz (Mega Hertz, a unit of frequency), 900 Mhz or
1800 Mhz, they refer to the spectrum which the telecom operator uses to enable
mobile phones to communicate. In a typical scenario when all this spectrum is
auctioned by the Government, there is higher demand for, and hence higher prices for
the lower frequency spectrum. This is because the lower frequency spectrum has a
longer wavelength, allowing the signal from the tower to travel longer distances (thus
they need to install fewer mobile-towers), and more easily penetrate walls.
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Why is it called the ‘cell phone’? That is because the network is structured in a ‘cellular’
way. A cell is an area covered by the base-station/mobile-tower. An adjacent cell
(covered by an adjacent base-station/mobile-tower) will likely use a signal of a slightly
different frequency to reduce interference of signals.
Voice (and data) communication is naturally supposed to be two way. Think of how
weird and unnatural speaking to a friend in a walkie-talkie is. 2-way communication
happens in modern telephony because of multiple access technologies. The first ever
was FDMA (Frequency Division Multiple Access). Information is sent on waves of one
frequency, and received on another frequency.
FDMA was simple, but was inefficient use of the spectrum which was becoming
scarce. Soon TDMA (Time Division Multiple Access) was developed. In TDMA, as the
name suggests, the signal is divided into very small time slots. Some time slots are
used for sending information, while others are used for receiving information. Because
the time slots are very small and imperceptible, it feels like two way communication.
This is like different people in a round table conference taking turns to speak one after
the other.
However, even the advent of TDMA could not reduce the spectrum scarcity due to the
ballooning usage of telecom. A more recent multiple access technology which
eventually went mainstream in 3G is the CDMA (Code Division Multiple Access)
technology. As the name suggests, different users speak in different codes, so more
people can speak at the same time. This is like different people in a market speaking to
each other at the same time. I will know whom to listen to because I know the voice of
that person.
2 5G
The G in 5G stands for generation, 5G being fifth generation of mobile networks. With
each generation (1G, 2G, 3G, 4G), the network gained in the following parameters:
1. The number of devices it can support: The number of mobile customers has
ballooned exponentially
2. The flow rate of data it can support (Mbps): Everyone can download large
movies in today’s network in reasonable time
3. The response time of the network (latency): Latency is not download speed.
Think of playing a graphics intensive shooting game online which is consuming 20
Mbps. If the bullet comes out of the gun long after you have pressed the trigger on
the screen, then the network has high (bad) latency/response-time.
5G will also show improved download speeds. However, there are other key reasons
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You would possibly be aware of recent 5G demos in countries like South Korea and
Japan. In fact, a South Korean operator intends to be the first operator to launch
mainstream 5G services during the 2018 Winter Olympics. For this, the operator needs
to manage:
1. Technical challenges: One key category of technical challenges stems from
the shortage of spectrum in the currently used bands. Free spectrum is only
available in the higher frequency bands. However, as we saw earlier, higher
frequency means the signal is less likely to pass through obstacles like trees,
buildings etc. Potential solutions for this range from advanced ways to form beams
of signals to setting up many mini-base stations/towers. There are other technical
challenges to improving network capacity too, which are not listed here. However,
technical challenges will sooner or later be solved.
2. Standardisation: With 5G still at its infancy, there exist no uniform standards.
This makes investment in 5G a very risky proposition. If you invest in a solution
which gets left behind, then you will be stranded. This is like writing data into
floppy discs when computers only have DVD drives.
3. Simpler and smarter network architecture: Each element in the network will
get smarter, like it has while evolving from 2G to 4G. This will result in the network
structure becoming much simpler and consequently cost efficient. If each element
knows what to do, then we do not need a complex set up to instruct and supervise.
Another aspect of this is virtualisation. Network functions which earlier had a
dedicated hardware, will now be implemented by software system in a more
general purpose hardware. This would reduce costs along with making the
network smarter.
4. Killer app: 5G may not really take off until some use case scenario(s) with a
large number of consumers (people who eventually pay) can be found. 2G took off
due to superior voice clarity. 3G took off due to superior internet browsing
experience, and 4G due to streaming videos. However, this does not seem to be a
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limitation. Self-driving cars, remote surgeries, VR movies and the likes are use
case scenarios which will benefit.
Today stakeholders and companies which are affected by 5G are forming alliances to
speed up development, and to be able to influence the final iteration to their benefit. 5G
technologies are also being tested in public, and hence we are likely to see commercial
deployment in the near future.
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A Safari in the famed Serengeti (Swahili for endless plains, indicative of the landscape
of the area) is quite rightfully in the bucket list of many people around the world. I was
lucky enough to be in Tanzania this June on work with colleagues from India. Everyone
in the local office right up to the CEO went the extra mile to help us organise a
Serengeti tour. However, these plans failed for multiple reasons. Our Tanzania stint
was coming to an end.
We were quite despondent. The last weekend in Tanzania was not too far away.
Moreover, the prospect of sitting in the hotel room in an exotic foreign location on my
birthday seemed quite preposterous. Thankfully, I regained hope soon after calling
home. I had less than a week to plan a trip which people take months to plan, if not
longer.
The problem was that Safaris in Serengeti were quite pricey, especially if you needed
to go solo. A solo budget Safari of 3-4 days would set you back by about $3000 (all
inclusive) because of long distances and steep Govt. fees. If you managed to go as a
group, you could get a decent Safari for about $1000 (all inclusive). The challenge was
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that people coming from around the world to Serengeti usually had their own pre-
formed groups. Very few people would come this far alone, and risk the uncertainty of
finding a group of random strangers who had similar interests and itineraries.
Because $3000 was way over my budget, I had the daunting task of finding a reputed
Safari operator, and a good group with similar interests all within a span of 3 days. I
owe a lot to the internet in general, and Tripadvisor and Google in particular for helping
me succeed in this daunting task.
Over the next few days, I sent out a flurry of emails. This was the most failure I have
ever experienced in life. Just ~2-3% emails I sent out to tour operators I found with
Google received a somewhat positive response in time. Because as I’ve mentioned
earlier, last minute random group Safaris are quite rare.
The task now was to identify the good operators, and hopefully a good group too. I was
warned by the Lonely Planet guide of fake operators swindling money, and of those
who don’t have a licence. If you have been cheated here of hundreds of dollars, you
didn’t have much of a legal recourse. So most people selected tour operators based on
references. However none of the references I got catered to clubbing random groups
together. Tripadvisor was of mighty help here. All the positive responses I got from my
Google search were from smaller, less known travel agencies. Hence, I employed a
two factor selection criteria:
1. The information about the group they could share
2. How genuine the ratings on tripadvisor seemed (and not the average rating)
Some of the tour operators could not give me any details of the group I would be
clubbed with. I just wanted to have an idea of the age group and kind of people I would
be going with. However, some operators were not able to answer that. I had read
online about cases of Safari operators colluding with each other and exchanging
clients. That is, you book with operator A, but when you reach, you are greeted by
operator B. In some other cases, the operator had a perfect star rating on Tripadvisor,
but if you dig deeper, most/all of the ratings came from tripadvisor members who had
posted only one review- that of the concerned Safari operator. These were red flags.
I eventually found an operator called Amazing Kilimanjaro. Jeff from this firm managed
to give me an indication of the demographics of the group I would be part of (of course,
without divulging any personal information). This gave me some confidence. Also,
Amazing Kilimanjaro did not have the best ratings on Tripadvisor. There were a few
bad ratings and reviews, to which I saw prompt responses by the company. This
indicated to me that at least the company was genuine, and not the setup of a con-
artist. What gave me more confidence was that Jeff was ready to take the advance
payment in person after I landed, and did not insist on a full payment online before I
reached Arusha (the starting point).
I was also generally concerned about safety in the Safari- about wild animals in the
camp site, and specifically about snake bites. Hence after some research, I guess I
was one of the rare few who took a Flying Doctors Air Ambulance insurance. If
something untoward happened, an Air ambulance would take me to Nairobi, Kenya
which had much better hospital facilities than nearby places in Tanzania. It was just
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$10 extra- I’d recommend everyone to ask their Safari operators for it.
After landing in Arusha airport on Friday evening, there was an initial hitch. Jeff sent
the driver to pick me up from the wrong airport (the nearby Kilimanjaro Airport). But,
within 10 minutes, he arranged a pickup at the right airport. This gave me enough time
to buy a good hat in the airport.
I was given accommodation in a pretty good place with good ambience. The next day,
at 8:30 AM, I was taken to the office, and I met the first half of my group- the second
half would join us the next day. I was quite inspired by my group members. The five
others in my group were all from different places (Australia, France, Germany,
Slovenia, Switzerland), and had very inspiring stories. The Australian person was an
accountant, and wanted to travel the world. So he quit his job and joined as a tour
operator in London. After travelling the world (80 odd countries), he came to Tanzania,
scaled Kilimanjaro in record time, joined us for a Safari, spent 2 weeks more in
Zanzibar before returning to Australia to rejoin his profession. Oh, and he's not touched
30 years yet! The French person and the Slovenian person were a couple who met a
few years ago while holidaying in Madagascar with their families. Ever since, they have
a yearly ritual of 3 weeks off at an exotic far away land, and 1 week off somewhere in
Europe. I could go on about the other members of the group, but you get the idea.
You could be forgiven to think that they could afford all this because they came from
countries which had a strong currency. But even Tanzanians, whose currency is
extremely depreciated (10,000 Tanzanian shillings = 280 Indian rupees) live a fuller life
than us Indians. Their idea of an evening/Sunday well spent, is to set off camping on
one of the nearby islands with turquoise blue waters. On the other hand, our idea of a
good evening/Sunday is limited to the time spent at a pub/movie/mall!
The Safari far exceeded my ‘wildest’ expectations both in terms of the animals and the
facilities. We spent the first night in a proper lodge, the second night in a luxury
camping accommodation, the third night in the middle of Serengeti in a public campsite
and the last night camping on the edge of the Ngorongoro crater. All these places had
hot water facilities for bathing. At all these places, delicious meals were served
regularly. Our cook, Isac travelled with us along with a gas cylinder to prepare hot
meals. Tea, coffee and hot chocolate were standard provisions and given at least twice
a day. The guide, Edga, also lent us a pair of binoculars!
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[https://2.bp.blogspot.com/-Mha3lnyIk3A/WXeaKkZvJlI/AAAAAAAAQBM
/bx8adjfq3Y41uvZxSIv0AWMn3D1C_P-mgCLcBGAs/s1600/DSC01797.JPG]
Pic1: My own private tent on the second night called the Ngorongoro
[https://4.bp.blogspot.com/-TLgkgA9dutM
/WXebCoiQh9I/AAAAAAAAQBQ/69aUoDj2ea0hCq1QI54Cp112MqZ3zo6eQCLcBGAs/s1600
/IMG_20170619_180848.jpg]
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Pic 2:Hot chocolate! At the campsite on the edge of the Ngorongoro crater
The animals were another story altogether. Coming from India, and having studied in
the Indian Institute of Technology, Madras (which is basically a forest teeming with
animals), I was apprehensive about being awed by the animals. On the first day, we
went to Tarangire national park, which was all about seeing prey like elephants,
giraffes, zebra and gazelles. The quintessential Baobab trees in the landscape were an
awe inspiring sight. However, this was just to be a starter, as I would learn soon.
[https://3.bp.blogspot.com/-kuWMiXgooWk/WXebm549bjI/AAAAAAAAQBc/sATC-
gxUwcMxd3XbnGB25PgOX22bFvy5ACLcBGAs/s1600/DSC01757.JPG]
Pic 3:Baobab trees
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[https://3.bp.blogspot.com/-2SwIoUy99Tg/WXecIXZJlfI/AAAAAAAAQBg
/gZhmUg6Ayi8Cm16o7lIhBVrMf2Mq0utZwCLcBGAs/s1600/DSC01871.JPG]
Pic 4:Hi Melman!
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[https://4.bp.blogspot.com/-gHvgB4-7Ja0/WXebObwSJuI/AAAAAAAAQBk
/4arMWd3jANoPgd20SEUD2P8civZjdRAcACEwYBhgL/s1600/DSC01749.JPG]
Pic 5:Elephants digging into a dried river to hit water for drinking
The next day, we set out to Serengeti National park. Reaching Serengeti on 18th June
was more special, because it was a fantastic birthday treat. Serengeti, which in Swahili
means endless plains, did not disappoint. The endless plains of grass were dotted
occasionally by the quintessentially African Acacia trees. This is almost an inspiration
in itself. Trees couldn’t take root here because a volcanic eruption millions of years ago
made it next to impossible for the roots to penetrate. The few isolated trees you see
are examples of perseverance and pushing against all odds (and rocks).
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[https://2.bp.blogspot.com/-PRmwJ8EgO2E/WXedUCYdGxI/AAAAAAAAQBw
/e1zLhKvNISAgXteq2mdiGfk3bkD-xTHWACLcBGAs/s1600/IMG_20170619_223209.jpg]
Pic 6:The inspirational isolated Acacia tree in Serengeti
The lack of trees make it very easy to spot predators too. Anyways, the idea was not
just to spot animals (which can be done in a zoo), but to observe them live, eat, play
and thrive in their natural habitat. However, for purposes of record-keeping (and
bragging rights J), we saw 50+ elephants, 100+ zebras, ~200-300 gazelles, 30+ lions,
2 cheetahs, 3 leopards, scores of hippos, quite a few giraffes, many kinds of birds in
the 2 days we spent there.
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[https://4.bp.blogspot.com/-8B523GjvczY/WXedyYUSQJI/AAAAAAAAQB0
/AFq-44cEXTM5JruetV_lETCo7my8eQN5wCLcBGAs/s1600/DSC02062.JPG]
Pic 7: Siblings
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Pic 8:Sunrise in Serengeti
The animals were quite playful too. You could see elephants almost playing tug of war
with their trunks. The lions were fun loving too: when I was taking a selfie with a young
lioness in Serengeti, a gust of wind caused my hat to come off my head. The lioness
almost leapt at me to catch the hat. It continued playing with it for the next 45 minutes.
Its friends tried to take the hat from it, but it simply pushed them away refusing to part
with my unintentional gift. At the end of an hour, when the pride of lions was leaving,
she tried to stop them. But when she didn’t succeed, she took my hat along when she
went.
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[https://3.bp.blogspot.com/-R55dL2VrjVs/WXeeZ7H9pMI/AAAAAAAAQB8
/E59nm3Za4JAFJqVKM_tqQOj-RtmYIC8UwCLcBGAs/s1600/IMG_20170619_100711.jpg]
Pic 9: My failed selfie with the young lioness which was more interested in my hat
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[https://2.bp.blogspot.com/-2PM3s-XZaT8/WXeeobuy_0I/AAAAAAAAQCA
/HU0UVgBhULgwzdOGnJl0rxY_W8Vj_b_AwCEwYBhgL/s1600/DSC02069.JPG]
Pic 10: My new friend, the young lioness, had to take my unintentional gift along when
her friends were leaving. And yes, this is how close animals get to us
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[https://4.bp.blogspot.com/-ujY7SNFcBi4/WXefERIdMjI/AAAAAAAAQCE
/1EFOiPL4wO0R6gH3V2SOM_hlvyTlTGxtgCLcBGAs/s1600/DSC01980.JPG]
Pic 11: Lions eating, and a daring hippo asking them to make way
Finally, we were to return after seeing the Ngorongoro national park. This is basically a
large crater of 260 square kilometres- it is another world in itself where we saw other
ways in which animals right from baboons to wilderbeest and zebras literally playing.
We even saw the critically endangered Ngorongoro lions (because of inbreeding and
no new genes in their genetic pool), thousands of flamingos along the Crater Lake, the
endangered rhino which just disappeared among the flowers by sitting down when cold
wind started blowing. We had camped at the Simba campsite on the edge of the crater.
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[https://1.bp.blogspot.com/-GTvkvsVbXsE/WXeflCNk2lI/AAAAAAAAQCI
/lqawAgSmcHYUtoZ0z11TAoLmD3AszzazQCLcBGAs/s1600/DSC02245.JPG]
Pic 12: Zebras in the foreground, and thousands of flamingos in the background,
Crater lake
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[https://3.bp.blogspot.com/-7zLbFLK-LKY/WXefxCPgYXI/AAAAAAAAQCM
/zMPTMw7UDoswh3SzCUiuynzOSF8Rk1EkACLcBGAs/s1600/DSC02201.JPG]
Pic 13:You always stop at a Zebra crossing! This picture also gives an idea of the
typical vehicles and the proximity of animals
Soon, it was time to go back to Arusha, and then further fly to Dar Es Salaam where I
was working. It was a fantastic experience, and the perfect way to start a new year.
When people ask me about the souvenirs I brought home from Tanzania, I just open
my Gallery. Sometimes, the best souvenirs are memories.
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[https://4.bp.blogspot.com/-EOmBd-eVVD8/WXegiSFShrI/AAAAAAAAQCU
/EdrBXYgt5s0vmX91yj1kHnZmKdvB-F6GQCLcBGAs/s1600/DSC01879.JPG]
Pic 14: Thanks to this tower, I could video call home from Serengeti :)
(PS- All photos were taken using a mobile phone or a basic point and shoot, not with a
DSLR's telephoto lens. The point of mentioning this is to show how close to nature you
are in Serengeti)
0 Add a comment
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Context
Customers are increasingly communicating with firms via Social platforms. Social
media is becoming an increasingly important arena for customers to complain, ask
questions, or give feedback.
This is because:
1. Some people find it more convenient to tweet, or write a Facebook post for some
issues than to call someone (Customer care).
2. There is also the perception that the public nature of Social platforms pushes
companies to resolve their concerns faster.
Objective
The objective for most companies, at whatever stage they may be in, would be to
develop an efficient, responsive, and scalable model for a Social Media care centre.
Technological enablers
For any organisation which is likely to receive multiple comments and posts, a tool
which can perform the following functions would be needed:
1. Distribute the multiple scattered posts on Social media among agents in the
Social media team such that every post gets answered, and no post has more
than one agent working on it.
2. Ability to coordinate and forward the post to the right ‘teams’ which are equipped
to address the post on Social media.
3. Ability to track the performance of the team for reporting (periodic) and monitoring
(real time) purposes
There could, and would of course be other specific requirements of any company.
There are multiple vendors who offer a solution for the above needs. There are two
categories of service providers:
1. The integrated vendors who provide the Social care tool as part of their larger
bouquet of enterprise CRM software.
2. Specialists who have an exclusive Social media solution. In fact many Indian
startups fall in this category.
The current trend in the industry is one of consolidation, and a movement towards an
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integrated solution. However, as of today, there are many specialists who offer niche
features, and promise agile development to suit custom needs.
Finding these tools are easy- a simple search engine query returns multiple results, of
which some are shown below in no specific order:
Specialists
Agent processes
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Conclusion
It is important to decide on the key objectives of the Social media team. This would
help one look at processes in a new light, enabling one to develop simpler and better
ways to get things done.
---
Grateful thanks to my project-guide, Mr. Krishnan Govindan, and my colleagues at the
corporate office, for the opportunities, insights and for facilitating a good project which
encouraged me to find out more about this field.
---
(Disclaimer: Any views expressed are entirely personal, based on sources entirely
public, as detailed in the bibliography below)
Bibliography
Bianchi, R., Schiavotto, D., & Svoboda, D. (n.d.). Why companies should care about
e-care | McKinsey & Company. Retrieved 9 January 2017, from
http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights
/why-companies-should-care-about-ecare
Dixon, M., Freeman, K., & Toman, N. (2010, July 1). Stop Trying to Delight Your
Customers. Retrieved 9 January 2017, from https://hbr.org/2010/07/stop-trying-to-
delight-your-customers
Gillies, T. (2016, October 23). Why Twitter, Facebook may make company call centers
obsolete in a few years. Retrieved 9 January 2017, from http://www.cnbc.com
/2016/10/23/using-twitter-and-facebook-to-demand-customer-satisfaction.html
Kawasaki, G., & Fitzpatrick, P. (2014). The Art of Social Media: Power Tips for Power
Users. Penguin.
LaFrance, A. (2016, May 25). Is Vine Dying? The Atlantic. Retrieved from
http://www.theatlantic.com/technology/archive/2016/05/vines-death-knell-gets-
louder/484301/
Matthew Dixon, L. P. (2012, January 23). Stop Trying to Delight Your Customers: The
Idea in Practice. Retrieved 9 January 2017, from https://hbr.org/2012/01/stop-
trying-to-delight-your-cu
Messaging Apps Are Changing How Companies Talk with Customers. (n.d.). Retrieved
9 January 2017, from https://hbr.org/2016/09/messaging-apps-are-changing-how-
companies-talk-with-customers
MOBILE, D. G. A. of B. S. (500, 41:26). The Future of Twitter? Statistics Show 2016
Death. Retrieved 9 January 2017, from http://www.huffingtonpost.com/david-
giannetto/the-future-of-twitter-sta_b_9232280.html
Mobile app for CPGRAMS portal to address governance-related grievance through cell
phone - The Economic Times. (n.d.). Retrieved 9 January 2017, from
http://economictimes.indiatimes.com/news/politics-and-nation/mobile-app-for-
cpgrams-portal-to-address-governance-related-grievance-through-cell-
phone/articleshow/49482157.cms
Molla, R. (2016, February 12). Social Studies: Twitter vs. Facebook. Retrieved 9
January 2017, from https://www.bloomberg.com/gadfly/articles/2016-02-12/social-
studies-comparing-twitter-with-facebook-in-charts
Overcoming obstacles to digital customer care | McKinsey & Company. (n.d.).
Retrieved 9 January 2017, from http://www.mckinsey.com/business-functions
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/marketing-and-sales/our-insights/overcoming-obstacles-to-digital-customer-care
Providing great customer service through social media. (n.d.). Retrieved 9 January
2017, from https://www.zendesk.com/resources/customer-service-through-social-
media/
Singer, G. B. and D. (2012, December 19). Turn Customer Care into ‘Social Care’ to
Break Away from the Competition. Retrieved 9 January 2017, from https://hbr.org
/2012/12/turn-customer-care-into-social
Social media raises customer service stakes in India: Report - Techradar India. (n.d.).
Retrieved 9 January 2017, from http://www.in.techradar.com/news/Social-media-
raises-customer-service-stakes-in-India-Report/articleshow/49453341.cms
Social Media Tool Review: Aspect Social for your Customer Support on Social Media
@AspectSocial. (n.d.). Retrieved 9 January 2017, from
https://www.socialsamosa.com/2013/11/social-media-tool-feature-aspect-social/
Sorry CMOs, you must share Twitter. (n.d.). Retrieved from
http://www.economistgroup.com/marketingunbound/channels/mckinsey-cmo-coo-
owns-social-media-customer-service/
Srivats, K. R. (2015, October 14). More Indians take to social media for customer
service response. Retrieved 9 January 2017, from
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social-media-for-customer-service-response/article7760423.ece
The Complete Guide to Using Social Media for Customer Service. (2014, February 20).
Retrieved 9 January 2017, from https://blog.bufferapp.com/social-media-for-
customer-service-guide
The magic of good service. (n.d.). The Economist. Retrieved from
http://www.economist.com/node/21563295
The New Customer Service Mandate - It’s No Longer Socially Acceptable To Not Be
Social | Forrester Blogs. (n.d.). Retrieved 9 January 2017, from
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the_new_customer_service_mandate_its_no_longer_socially_acceptable_to_not_
be_social
The rich tweet, too. (n.d.). Retrieved from http://www.economistgroup.com
/marketingunbound/channels/wealthy-social-customer-service-mckinsey/
The Social Care Imperative: Four Steps to Drive Brand Health and Cust…. (n.d.).
Retrieved 9 January 2017, from http://www.slideshare.net/NMIncite/the-social-
care-imperative
TREBAUL, P. (2016, May 10). Snapchat Vs FaceBook Vs Twitter Vs Instagram, Who’s
The KING?! Retrieved 9 January 2017, from https://www.linkedin.com/pulse
/snapchat-vs-facebook-twitter-instagram-whos-king-philippe-trebaul
‘Twitter accounts for only 17% of Indian social network users’ - The Hindu. (n.d.).
Retrieved 9 January 2017, from http://www.thehindu.com/sci-tech/technology
/internet/twitter-accounts-for-only-17-of-indian-social-network-
users/article6830300.ece
Twitter vs Facebook for Business - Which Is Better? (n.d.). Retrieved 9 January 2017,
from https://www.thebalance.com/twitter-vs-facebook-which-is-better-3515069
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on-social
Your Company Should Be Helping Customers on Social. (n.d.-b). Retrieved from
https://hbr.org/2015/07/your-company-should-be-helping-customers-on-social
0 Add a comment
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With the recent demonetisation drive of the Indian Government, and the recent high
volatility in its value, the bitcoin has again come into prominence.
Bitcoin is so much more than an online wallet. It is an entirely new currency. But it is
also so much more than a new currency- the underlying blockchain technology has the
potential to disrupt many industries. At the very least, this new technology is a pointer
to the direction in which humanity has been evolving over the millennia.
Paying someone
First, the basics. When a person (A) needs to pay a stranger (B), something to which a
certain value is ascribed is transferred from A to B. This item of value can be a physical
good (like wheat, fruits, rice etc.-Barter system), gold, rupee notes etc. However, the
above means of payment become very inefficient and slow because it involves actually
moving a physical and tangible entity from A to B.
The internet brought a much faster way- A transfers part of the credit he holds in his
account to B’s account. The only way A and B know that the transfer has happened, is
if it reflects in the account statements/ledgers of both A and B. In this transfer however,
if A and B are the only parties involved, there would be a lot of fudging. A would claim
in his ledger that he sent only Rs. 10, but B would claim in his ledger that he received
Rs. 10,000. Hence, we need a neutral intermediary (like the bank or Government) to
ensure fair recording and to guarantee the payment.
The most exciting part of Bitcoin is not the currency itself, but the underlying
technology. The underlying blockchain technology is basically a way to get two
strangers to agree without any central intermediary. In the previous payment-to-
stranger example, one needs to ensure that if A enters a debit of Rs. 10, then B will
only enter a credit of Rs. 10 without involving any intermediary whatsoever.
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Blockchain’s solution is a very simple and elegant one- instead of having one central
supervisor, A announces and shows his ledger entry to the whole world that he is
giving Rs. 10 to B. Now B shows his ledger entry (of the credit of Rs. 10) to the whole
world too, and if they match, everyone will “vote” to allow the transaction to take place.
Once sufficient people have vetted the transaction, the software records it permanently.
Myriad applications
The blockchain technology powering the bitcoin is much more than just a payments
solution- it is a way to make two strangers sign a common agreement in the absence of
a powerful central intermediary to match records. The applications range from signing
contracts, to storing records of clinical trials to even voting for our political parties.
However, over the centuries, the capabilities of the general public seem to have
increased. As a consequence, we seem to increasingly (albeit, slowly) take more and
more power into our hands. Come to think of it, our earliest rulers were unquestionable,
and in some cases even divine. This transitioned into having kings, queens and
monarchs as rulers who were feared, but occasionally questioned because they were
looked at as humans. Slowly the idea of self-rule and democracy took shape to give us
the kind of Governments most have today.
The blockchain is basically a way to further transfer power away from these central
figures to the society, because certain transactions no longer need these central
intermediaries.
Criticisms of bitcoin/blockchain
The blockchain, and the current implementation of the bitcoin have their fair share of
criticisms:
1. They have been used in the infamous Silk route for drugs.
2. Bitcoin mining (the computational process powering this currency) is intentionally
designed to be computationally intensive- their data centres cause a lot of
unnecessary emission of greenhouse gases. For context, as on 2015, the bitcoin
network had 100 times more computational power than Google.
3. Moreover, till date they are very cumbersome to use.
4. Also, the bitcoin lacks some features available in normal credit cards like payment
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reversal.
5. Another important limitation is the time it takes for any transaction to get
confirmed- about 10 minutes currently.
Conclusion
The bitcoin may or may not survive. Even the blockchain technology may be replaced
by a more disruptive technology. But the paradigm of decentralisation will only
continue.
Bibliography
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1 View comments
This trend is very apparent in PCs and Laptops. Think of how much a Macbook Pro or
a Surface Studio would set you back by. Vlad Savov in his post [http://www.theverge.com
/2016/10/28/13452084/microsoft-apple-new-pc-surface-macbook-prices-expensive-exclusive] on
The Verge had a very compelling theory- The rise of mobiles and tablets has reduced
demand for PCs and Laptops. And once any product ceases to be a mass market
product, basic economics directs you to make it more niche, and more expensive.
While this seems intuitively appealing, it may be just part of the story. A study of what
drives prices in the long run would be instructive.
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suggested that, for some goods, as the price increases, the demand increases.
This is because, consumers are status conscious, even if the extra price is simply
wasteful expenditure. A similar theory, the Handicap principle theorises that
extravagant and costly signalling is often indulged in to improve chances of
reproductive success, and is thus evolutionarily conserved.
2. There is increased customisation in products whose prices refuse to go down. For
instance, today’s luxury watches are hand-made, and there is a dazzling array of
designs and features to choose from. Customisation usually increases costs. As
Henry Ford puts it- “any color you want, as long as it's black”. However,
customisation also increases willingness to pay because of the value we humans
attach to exclusivity (point 1).
3. In the electronics industry, there is the impending death of Moore’s Law. Moore’s
law was a self-fulfilling prophecy which said that the number of transistors (and
hence, to an extent, computing power) will double every two years. Every year,
with Intel at the lead, chip manufacturers worked hard to make this law work by
pouring in more money in R&D, new fab lines etc. They managed to recoup
investments because they mass produced chips which were readily bought.
However, two factors will not let this continue indefinitely:
So, if you want to buy a new phone/laptop, don’t wait for the perfect device, and don’t
wait for prices to fall. Prices for such personal items will never fall, and there will always
be a better device tomorrow. Buy it right now, if you need a new device. Wait till you
need a new device, if you don’t need it right now, because you will invariably get a
better one tomorrow.
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Bibliography
Google’s AI Bots Run On Custom-Built Computer Chips. (n.d.). Retrieved December 4,
2016, from https://www.wired.com/2016/05/google-tpu-custom-chips/
Jones, P. (n.d.). Intel customizes chips for data center giants. Retrieved December 4,
2016, from http://www.datacenterdynamics.com/content-tracks/servers-storage/intel-
customizes-chips-for-data-center-giants/87412.fullarticle
root. (2011, April 14). Conspicuous Consumption. Retrieved December 4, 2016, from
http://www.investopedia.com/terms/c/conspicuous-consumption.asp
The chips are down for Moore’s law : Nature News & Comment. (n.d.). Retrieved
December 4, 2016, from http://www.nature.com/news/the-chips-are-down-for-moore-
s-law-1.19338
The price of age | The Economist. (n.d.). Retrieved December 4, 2016, from
http://www.economist.com/node/457272
The Theory of Honest Signaling - Defining the Handicap Principle. (n.d.). Retrieved
December 4, 2016, from http://octavia.zoology.washington.edu/handicap_old
/handicap_principle.html
Why cheap phones are getting better and expensive phones aren’t - AndroidPIT. (n.d.).
Retrieved November 27, 2016, from https://www.androidpit.com/why-cheap-phones-
are-getting-better-and-expensive-phones-arent
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The recent launch of the iPhone 7 has garnered a lot of attention for its slew of new
features, and for the missing 3.5 mm jack.
An iPhone is a high quality phone with a great camera. There are many people and
reviews out there which tell you why you need to buy it- reasons right from aesthetics
to quality and attention to detail.
However, there are quite a few hiccups and practical difficulties in using this device-
some well-known, and some less known. This article is about those irritants which
Apple will hopefully take note of:
1. iMessage reliability in areas of unreliable internet: iMessage on the surface is
a very simple and easy to use app. It theoretically scores over WhatsApp because
the convenience of using a single app for both rich multimedia messaging, and
basic SMS.
However, it is not very reliable. If the recipient of the message has his/her net
turned off, or is in an area with a poor data network, the message doesn't get
delivered. Moreover there is no way to ask iMessage to send as a normal
message immediately, because the message has already been sent from one end-
it just hasn't been delivered yet.
2. Incompatibility with other devices: Transferring an attachment to a
(Windows/Linux) laptop from an iPhone when there is no data connection, and no
cables is a near impossible task. Such scenarios are not uncommon- for example
when one is in a flight.
3. Customer service in India: In India, Apple’s customer service is outsourced to
third party agencies. This would mean that one may not expect the same
standards of service as in countries like the US.
4. App store is limiting: The Apple app store might boast of the largest number of
apps. However, most apps are commercial apps for the masses. It lacks niche
apps which will never have a vast audience (for eg- Netmon). This is because of
the way the revenue sharing agreements of the stores are structured- Apple
demands an annual fee, while Google demands only a one-time fee from
registered developers. An annual fee discourages apps which have a very niche
target segment.
5. Restrictions: The multiple restrictions on software and hardware are quite well
known. These restrictions somehow seem quite inconsistent with Apple’s stated
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ideology. Apple came into being by claiming that its products were truly 'personal'
and original. It abhorred competitors like IBM in its famous 1984 Superbowl
commercial [https://www.youtube.com/watch?v=VtvjbmoDx-I] for being a control freak
which brainwashed the masses into accepting their version and worldview.
Ironically, Apple seems to be doing exactly the same with its restrictions, and lack
of personalisation,
6. Lack of an FM radio: This is important enough to be part of a separate
subheading. Especially because the iPhone (like a lot of other high end flagships)
already has the FM radio chipset bundled in. For example, the iPhone 6 has the
Murata 339S0228 chip which has the FM functionality. It is just that these are
disabled.
Apart from the obvious advantages of understanding local culture, being light on
battery life (uses one sixth the battery used by an internet streaming service), and
being free, the humble FM radio has one crucial advantage: It is a reliable means
of communication during a natural disaster. The FM radio, for example, played a
key role in conveying information during the recent Chennai floods.
Hopefully (though not likely), these irritants would be taken care of in the next iteration
of their phone.
BIBLIOGRAPHY
Apple 1984 Super Bowl Commercial Introducing Macintosh Computer (HD) - YouTube.
(n.d.). Retrieved September 12, 2016, from https://www.youtube.com
/watch?v=2zfqw8nhUwA
Apple iPhone charger teardown: quality in a tiny expensive package. (n.d.). Retrieved
September 12, 2016, from http://www.righto.com/2012/05/apple-iphone-charger-
teardown-quality.html
Lovejoy, B. (2015, April 20). National Association of Broadcasters calls for Apple to
switch on the iPhone feature you didn’t know you had. Retrieved from
https://9to5mac.com/2015/04/20/fm-radio-iphone/
MailOnline, B. R. G. for. (2015, April 27). The FM radio hidden in your SMARTPHONE
that few people can use. Retrieved September 12, 2016, from
http://www.dailymail.co.uk/sciencetech/article-3054299/The-FM-radio-hidden-
SMARTPHONE-Mobile-manufacturers-denying-users-chance-listen-radio-free.html
Williams, R. (2016, September 12). iPhone 7 and iPhone 7 Plus hands-on review:
Surprisingly daring. Retrieved September 12, 2016, from http://www.mirror.co.uk
/tech/iphone-7-iphone-7-plus-8790256
Posted 12th September 2016 by Akhil Sai
Labels: Apple, Apple iPhone, iOS, iPhone, iPhone 7, Should I buy an iPhone, Tim
Cook
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Let us consider the most economical mass market plan of Rs. 149 per month. It is quite
likely that tariffs would be revised before they start charging customers. The following
calculation would be illustrative:
a. TRAI mandated interconnection usage charge (IUC) is 14 paise per minute to
be paid to a wireless operator in whose network your call terminates. The IUC is a
means of enforcing the principle of Calling Party Pays, and consequently
compensating the receiving party for using its infrastructure for completing your
call (note that the customer who receives the call isn’t charged anything). The IUC
is calculated based on the cost of running the network.
b. Now, assuming that Jio reaches its target of achieving 10% customer share, it
would be paying this interconnect charge on 90% of its calls. That is, Jio would be
paying an average of 12.6 paise per free voice call its customer makes to other
operators.
c. If a customer speaks for just 40 minutes a day, Jio would spend Rs. 149 a
month on just interconnect charges (Rs. 149/(90% of 14 paise per minute)). If a
customer speaks for more than 40 minutes a day (very likely if you have unlimited
free voice), Jio is already losing money on each customer without even taking into
consideration the costs of running the network and the company.
The most likely way Jio is going to continue with the unlimited free voice plan even at
Rs. 149 is if TRAI revises the interconnection charges. This is unlikely to happen soon
because of the following reasons as gleaned from the TRAI website:
1. Currently, TRAI is engaging in a consultation process on reviewing
interconnection charges as seen in their website. It is likely to take much longer to
come out with a final change in policy.
2. While IP based networks (like that of Jio) are likely to have a different cost
structure, the entire costing exercise is yet to be completed to determine if the IUC
must be revised for such IP based networks.
3. Moreover, the IUCs of legacy operators like Airtel and Vodafone are unlikely
to significantly change. This is because the cost structures of the networks of
legacy operators are unlikely to have drastically changed in recent times. The only
way the IUC would significantly change is if the TRAI takes a policy decision to
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completely scrap the cost based IUCs in favour of a more market driven
mechanism.
The other possibility is that Jio uses some means to selectively cap consumption of
some power users of voice.
This means, the unlimited free voice promised by Jio is not a sustainable proposition,
unless there is an upheaval in the policy environment.
Personally, I loved the Rs. 499 per month plan which gave 4GB data. I would have
definitely taken this plan if I was in college because:
1. The plan is simple: 4GB of data, unlimited voice and no hassles of roaming
2. I was already paying about Rs. 400 per month on my non-Jio phone bill
However, anyone who has seen the market will know that India is a vast country with a
very diverse set of people. The average revenue per telecom user in India is Rs. 170
per month, with some spending as low as Rs. 50 per month for both data and voice.
Convincing them to upgrade to Rs. 499 a month, much less the more expensive plans
could easily backfire, especially when not everyone has a 4G device.
The other apprehension I have here is that Jio might have gotten their targeting wrong.
The low data rates are only on its high end plans which can only be bought by the rich.
And such rich people are quite likely to already have the faster and the more
economical wireline broadband internet already installed in their home/office, thus
obviating the need for any high end data packs.
However, consumers could face/already are facing other difficulties with such a
network:
1. Poor signal: Considering that Jio is holds pan India spectrum only in the
1800Mhz or in the 2300Mhz frequencies, the range and indoor connectivity would
be limited. This is because of the same principle we learnt in high school- Lower
frequency, longer wavelength (like red light) waves travel further than high
frequency, short wavelength (like blue light).
2. Much higher battery consumption: LTE may be very efficient in units of
(energy/MB of data) while downloading large amounts of data. However, it is not
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very efficient in units of (energy/time online) because voice does not consume
large amounts of data. Poor range of the signal accentuates the problem of high
battery consumption (point 1).
3. The principal benefit of calls with higher bitrate (quality) is applicable only
when both the caller and the receiver are on the VoLTE network, have sufficient
signal strength and have VoLTE capable devices. This required ecosystem is not
yet ready.
While it is clear that VoLTE and a complete IP based network is the future, the question
is about timing- is now the right time to jump into it? Other rival telcos have thought
about this question, and have decided to wait a little longer before completely
upgrading their voice services to VoLTE or comparable services. For instance:
http://telecomtalk.info/airtel-doesnt-feel-the-desperate-need-to-deploy-volte-just-
yet/156561/#!parentId=598481 [http://telecomtalk.info/airtel-doesnt-feel-the-desperate-need-
to-deploy-volte-just-yet/156561/#!parentId=598481] . As an analogy to drive home the point,
the first touchscreen phone- the IBM Simon was launched in 1992. It was not until two
decades later, with the launch of the iPhone, that a touchscreen phone became
practical, relevant and usable for the masses.
4. Content
This may well be the ace among Jio’s cards. By offering a complete bouquet of
services free for a year and a half, Jio will likely achieve the following:
It will give a reason to access the internet. Many people lack a compelling enough
reason to access the net.
It will increase stickiness. Someone used to their suite of apps may not change
their operator. For instance many Airtel users swear by Wynk music.
However, this advantage may not continue when they start charging their customers for
these services.
Conclusion
While a lot of opinion pieces have appeared in recent times, the need of the hour is a
more thorough analysis and research by some experts in the sector. For instance, one
can explore the sustainability of prices among telecom operators to get a glimpse into
the future. There are surprisingly absolutely no well researched articles on this topic,
even though the most talked about topic today is Jio’s low prices.
In conclusion, the entrance of Jio is a welcome step for the industry. The industry will
see increased activity and improvement, in part due to the nudge by Jio. Jio could be a
good product, but just not revolutionary.
(Disclaimer: Views expressed are entirely personal, and not necessarily static, based
on information which is entirely public as detailed in the bibliography below)
Bibliography
(2) Long Term Evolution (LTE): Why is VoLTE battery consumption so high? When will
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10, E. C. | S., 2016, & Ist, 11 47 Am. (n.d.). Airtel, Vodafone want higher fee to handle
Jio’s call “tsunami.” Retrieved September 11, 2016, from
http://economictimes.indiatimes.com/news/company/corporate-trends/airtel-vodafone-
want-higher-fee-to-handle-jios-call-tsunami/articleshow/54261769.cms
10, P. S., 2016, & Pm, 12:45. (n.d.). Airtel & Vodafone to Open Up Reliance Jio Calls,
But Only in 2017. Retrieved September 11, 2016, from https://www.thequint.com
/technology/2016/09/10/airtel-and-vodafone-to-open-up-reliance-jio-calls-but-only-
in-2017
Airtel CEO Gopal Vittal on mobile Internet strategy - TelecomLead. (n.d.). Retrieved
September 11, 2016, from http://www.telecomlead.com/telecom-services/airtel-ceo-
gopal-vittal-mobile-internet-strategy-70883
Analysis, I. A., 4, N. L. U. J., & 105, 2016 at 11:16 Am. (2016, July 4). Rcom 4G vs Jio
4G how do they compare? Retrieved September 11, 2016, from http://telecomtalk.info
/rcom-4g-vs-jio-4g-how-do-they-compare/154789/
Jio effect: Airtel urges Trai to ensure networks not abused by free traffic | Latest News
& Updates at Daily News & Analysis. (2016, September 9). Retrieved September 11,
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networks-not-abused-by-free-traffic-2253583
Parbat, K., 07, E. B. | S., 2016, & Ist, 01 50 Pm. (n.d.). Not bound to give interconnect
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give-interconnect-points-to-reliance-jio-telcos-to-pmo/articleshow/54039052.cms
Rajawat, K. Y. (2016, September 9). Telecom war in India: collateral damage on music
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content-rajawat
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Trai spectrum pricing: Bharti Airtel’s Gopal Vittal says 700 Mhz prices too high - The
Economic Times. (n.d.). Retrieved September 11, 2016, from
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airtels-gopal-vittal-says-700-mhz-prices-too-high/articleshow/50775743.cms
Why Bharti Airtel and Reliance Jio Chose 1800 MHz for LTE? (n.d.). Retrieved
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reliance-jio-chose-1800-mhz-for-lte-14509.html
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have-fdd-lte-and-tdd-lte/
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rival-credit-suisse/50180103
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