Ronnie05's Blog

Positioning: Still relevant in the digital age

Posted in Social context, media and advertising by Manas Ganguly on February 21, 2009

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http://www.contentsutra.com/entry/419-big-adda-to-break-even-in-3-years-says-rajesh-sawhney-president-relianc/

 

In 2008, ADAG backed Big Adda spend money on advertisement campaigns to get eyes balls. Not stopping at that they hosted Amitabh Bachchan’s blog and ran promotions. The cost of all the spends on advertisements and promotions was about 5 crores. The other prominent spender in the social networking space in 2008 was iBiBo.com with its “Balti nahi Bolti” campaign. The spends were budgeted at 60% on the traditional mass media and 40% on the online audiences. The results of those efforts is that while total internet audience in India surged by 22% and the Social networking numbers surged by 51%, BigAdda lost 25% of its audience and iBibo lost 50% of its audience.

On the contrary sites like Bharat Student, Linked In, Orkut, Face Book,hi 5 and others didnot invest in any marketing activities and yet they registered significant growth beating the median (growth of the market).

Does this lend credence to the fact that online marketing is more than eyeballs. Probably it is content related, probably more features to do more things, probably the No 1 social networking website Orkut is riding a threshold mass. Probably it is do to with being “in”, as in Facebook. I have a inkling that while in 2008 Orkut rode Threshold and Facebook was “in”, in 2009, Orkut will saturate, Facebook will ride the threshold and Twitter will be “in”. Probably it is to do with your positioning, e.g Bharat Student or serving a speciality, LinkedIn.

In absence of a clear hook, IBibo and BigAdda spent a lot creating awareness, but were after all not able to make a clear and uncontested spot in the mind of the user (positioning themselves effectively). That could lead them to a “aslo ran” status. That could be one of the reasons of their negative inspite of the social networking scene being in 50%+ positive.

Lessons from the day 1. Dont try to be too many things to every consumer. He will seek you out if you deliver the benefits. 2. Traditional media vehicles may create awareness. But if the offering is not sticky enough, you cannot get your consumers to stay back. (I believe in.com is headed the same way) 3. Postioning is as relevant as ever.

One important thing is Monetization bit. How do you monetize the 3.3 millions users on your books.

Debating WiMAX and LTE (Part II)

Posted in Industry updates by Manas Ganguly on February 21, 2009

Picking the winner

Experts and bloggers all over have contested and claimed on which one is better than the other LTE or WiMAX? This is perhaps precipitated by the camps which back the technologies. However, a third view on these technologies suggest that there is no winner in strict terms because these technologies are complementary in nature. Bore OFDM parent, WiMAX has a data background and LTE has a voice background. Furthermore, WiMAX will work on 5 levels of service such as emergency services, public safety, data transmission (real time and otherwise) and Voice. To that extent it appears to be more versatile than LTE which has only two levels of service (one for voice, and the other for everything else). So the usage and market positions of these two technologies will depend on customers and their usages, spectrum positions and other technology quantities. Thus the idea (as depicted bythe graphic below) is complementary technologies for divergent telecom needs. There is a possibility that a single vendor may be use both these standards to provide services to different class of consumers!wimax_and_lte_pic

Advantage LTE: Where does LTE score above WiMAX?

LTE is the natural evolution resultant from 2G to #G and onto LTE. Thus

1. Handset manufacturers are likely to weight toward LTE handsets (as an extension of their 2G,3G,3.5G lines)

2. Using the existing UMTS network for 80% of its needs, LTE will not involve very high CAPEX involvements. Thus a better experience can be rewarded to the consumer with less investment as far as Telcos are concerned.

3. Mobile operators will roll out LTE and users can fall back on the 2G/3G networks where-ever there is a “hole” in the LTE network.

Advantage WiMAX: Where WiMAX would outscore LTE?

1. WiMAX works on a open standard which translates into a cheaper network.This reduces the cost of operations to almost half of that of LTE

2. As discussed earlier with 5 levels of service, WiMAX is a more versatile service compared to LTE.

3. Build on the IEEE 802.16 wireless broadband standard, fixed WiMAX (802.16D) will tantamount to a huge WiFi area. So this can be used in large campuses and office complexes and for within city Broadband and voice services (as long as in line of sight). Thus in terms of usage, WiMAX can be versatile in terms of group usage as well.

Weaknesses LTE and WiMAX

1. LTE will be limited to single subscriber system on a large carpet area.

2. WiMAX would work on a multi subscriber system in a small carpet area. Also, with loss in line of sight and distances between the tower and the reciver, the rates of data transfer may be erratic and inconsistent.

Final Verdict

Yet again, it will be different strokes for different folks sort of a thing out here. Taking pole positions with any one technology could prove to be counterproductive for the players in the market. While LTE will ride upon 80% GSM market share, WiMAX will be handy in Enterprise operation markets and data heavy networks. So while LTE will be at a lesser advantage in Data, WiMAX may find it difficult to cover full geographies as exhaustively as LTE!

The interesting bit is that a study into cellular subscriber patterns in 2012 still reveal that 55% of 4.8 billion cellular subscribers (by 2012) would still be using the GSM/EDGE/GPRS technologies and only a lowly handful will be into WiMAX and LTE.

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Debating WiMAX and LTE (part 1)

Posted in Industry updates by Manas Ganguly on February 21, 2009

215id2_art_110LTE (Long term Evolution) and Wimax (Worldwide interoperability for Microwave access) are the two competing fourth generation technology standards that will usher in next generation wireless. (Thats a long long way off for a country like India, which struggles with 3G roll outs.)

As the graphic above suggests, the debate today centres around LTE versus WiMAX. Interestingly enough both these technologies come from the same parent OFDM. To that extent they are siblings and this is about sibling rivalry (Kane and Able anyone?)

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Graphic on how data speeds stack up in Technologies. This doesnot mention the super standard which would be a combination of LTE and WImax and is supposed to have 1GB/Sec speeds on data transfer.

The Camps and the Lineage
Wimax is being rolled out by Sprint Nextel – Clearwire partnership. The roll out barnd would now be Clear (It was Xohm earlier). The roll out is expected to begin in 2009. This group has the auspices of Intel, Time Warner Cable, Google and Comcast and we will see why they have this backing. Mobile WiMAX has been implemented by WiBro in South Korea since 2006. As a technology WiMAX has been around for sometime now and it is now that it is beginning to see serious on the ground action.

 

LTE is being spearheaded by carriers At&T and Sprint in US, NTT Docomo in Japan. 7 major Telecom companies have agreed to a mutual framework for licensing I P Rights relating to LTE. This includes Alcatel Lucent, Ericsson, NEC, Next Wave Wireless, Nokia, Nokia Siemens Network and Sony Ericsson. The clamor for LTE standards recieved a big boost when Nortel deserted its WiMAX position to check into the LTE camp (Nortel is a toast of recesssionary history now). Vodafone, the worlds No 1 operator also supports LTE standards, which comes as a huge fillip to the LTS camp!

 

Time to Market

 

WiMAX will see the first level of deployments and serious action in 2009 and it will have a head start over LTE, which would only come alive by 2011-12. Having a 2-3 years head start can be a boon as GSM proved against CDMA. GSM was ahead of CDMA in terms of launch and till date enjoys 80% of the world market share.

 

This time to market for WiMAX as a technology will be offset by the pace of LTE launch. LTE will use the existing UMTS networks for a quicker launch. Thus it makes up for the time disadvantage by the incumbent advantage in terms of roll outs
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