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As Indian telcos start seeing traction with 3G take-up, we take a look at the
data tablets recently introduced in the market. We believe we are at just the
beginning of several more data-focused devices being launched at attractive
price points which in our view remains a key consideration for 3G services
take-up. We are encouraged to see this catalyst coming through and we expect
telcos to limit data usage offerings – especially on Tabs – and to stay away
from unlimited plans given the modest 5MHz of 3G spectrum award.
Reliance 3G Tab at INR 13K: Reliance Communications launched its
ZTE-manufactured 3G Tab at INR 12,999. We note that the data bundles
(1/2/5GB) can add another INR4.5-7K bringing total cost of ownership
(TCO) to INR 17.5-20K for the year. See the table overleaf for detailed
specs.
Our experience with the Reliance Tab: Overall we believe it is a good
device with a responsive capacitive touch-screen (a la iPad), good sound
and video quality and a decent processor. We were able to experience
download speeds of 2Mbps+ (the maximum is 7.2Mbps). The battery is
expected to last 9 hours. The store we visited in Mumbai had sold about 25
pieces within 10 days of launch and our conversations revealed that the
Advance Rental plans are proving popular. One negative we’d highlight was
that the accelerometer had a bit of a lag.
Beetel MagiQ at INR 10K: Beetel Teletech, a Bharti Enterprise group
company, has launched its 7-inch tablet – MagiQ – for INR 9,999,
manufactured in partnership with Huawei. On specs, we believe it is
comparable to the Reliance 3G Tab, but at a 20%+ lower price point. We
expect Bharti Airtel to be an operator partner here but the tablet allows for
SIM-independent calls. Please see http://www.beetel.in/magiq for more.
Other Tabs: Besides the tablets launched by device majors – Apple, RIM,
Samsung – as well as those launched by Reliance and Beetel, there are
several other tablets available in India starting at INR 8-9K (Olivepad,
Accor etc). Other domestic handset vendors like Micromaxx, Maxx Mobile
etc are likely to participate here too. We expect pricing competition to
increase in the tablet segment much like it has with smartphones.
Smartphones > Tabs: We continue to expect the multi-purpose nature of
smartphones and “smart-like” phones to render them the data-device of
choice while Tabs being largely “nice-to-have” devices within the broader
3G sub base. India's sub base already has 5-8% penetration of smartphones
and the rapidly declining pricing is helping. Smartphone prices are declining
to $120 levels fueling 3G services take-up according to Idea management
while RCOM management stated that the handset ecosystem needs to
develop further with pricing getting to INR2,000-2,500 (~US$50). However
some segments - education institutions, SMEs - are good target markets for
Tabs in our view and devices like the Beetel MagiQ allow for SIM-calling.
Apple is covered by Mark Moskowitz, Samsung by JJ Park, ZTE by Alvin
Kwock, and RIM by Rod Hall.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
As Indian telcos start seeing traction with 3G take-up, we take a look at the
data tablets recently introduced in the market. We believe we are at just the
beginning of several more data-focused devices being launched at attractive
price points which in our view remains a key consideration for 3G services
take-up. We are encouraged to see this catalyst coming through and we expect
telcos to limit data usage offerings – especially on Tabs – and to stay away
from unlimited plans given the modest 5MHz of 3G spectrum award.
Reliance 3G Tab at INR 13K: Reliance Communications launched its
ZTE-manufactured 3G Tab at INR 12,999. We note that the data bundles
(1/2/5GB) can add another INR4.5-7K bringing total cost of ownership
(TCO) to INR 17.5-20K for the year. See the table overleaf for detailed
specs.
Our experience with the Reliance Tab: Overall we believe it is a good
device with a responsive capacitive touch-screen (a la iPad), good sound
and video quality and a decent processor. We were able to experience
download speeds of 2Mbps+ (the maximum is 7.2Mbps). The battery is
expected to last 9 hours. The store we visited in Mumbai had sold about 25
pieces within 10 days of launch and our conversations revealed that the
Advance Rental plans are proving popular. One negative we’d highlight was
that the accelerometer had a bit of a lag.
Beetel MagiQ at INR 10K: Beetel Teletech, a Bharti Enterprise group
company, has launched its 7-inch tablet – MagiQ – for INR 9,999,
manufactured in partnership with Huawei. On specs, we believe it is
comparable to the Reliance 3G Tab, but at a 20%+ lower price point. We
expect Bharti Airtel to be an operator partner here but the tablet allows for
SIM-independent calls. Please see http://www.beetel.in/magiq for more.
Other Tabs: Besides the tablets launched by device majors – Apple, RIM,
Samsung – as well as those launched by Reliance and Beetel, there are
several other tablets available in India starting at INR 8-9K (Olivepad,
Accor etc). Other domestic handset vendors like Micromaxx, Maxx Mobile
etc are likely to participate here too. We expect pricing competition to
increase in the tablet segment much like it has with smartphones.
Smartphones > Tabs: We continue to expect the multi-purpose nature of
smartphones and “smart-like” phones to render them the data-device of
choice while Tabs being largely “nice-to-have” devices within the broader
3G sub base. India's sub base already has 5-8% penetration of smartphones
and the rapidly declining pricing is helping. Smartphone prices are declining
to $120 levels fueling 3G services take-up according to Idea management
while RCOM management stated that the handset ecosystem needs to
develop further with pricing getting to INR2,000-2,500 (~US$50). However
some segments - education institutions, SMEs - are good target markets for
Tabs in our view and devices like the Beetel MagiQ allow for SIM-calling.
Apple is covered by Mark Moskowitz, Samsung by JJ Park, ZTE by Alvin
Kwock, and RIM by Rod Hall.
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