data explosion - bets

Indias data usage will be 50 times from now in 2020. which are good bets??

 

@w4wealth I would reiterate, that content is king. This data usage explosion will help increase reach of content companies. Telcos will also make money but they have to invest a lot in the infra (using debt) and low margins. I would reiterate that Eros, Shemaroo are great bets for riding the data explosion wave.

 

how about smartlink?

 

I wouldn't be betting on these small hardware companies. The data explosion is going to happen because of 4G, more smartphone penetration, improving literacy and rural growth. Modem creating companies may not be the best beneficiaries of this, I dont think.

 

How about zee entertainment, onmobile global ?

 

ok. is there any mobile manufacturer to bet on??

 

onmobile may be good as mobile devices no.s will jump manifold.

 

@w4wealth I dont know of many mobile manufacturers in India who are listed. OnMobile has been prominent in VAS service which is basically shortcode based call subscription packs which they used to sell via operators like Airtel, Idea etc. In that business, OnMobile only gets 30% of it, 70% goes to the operator. Data explosion might remove VAS industry because then it will not be so relevant.

 

OnMobile Global Limited (NSE: ONMOBILE, BSE: 532944) delivers comprehensive end-to-end solutions for network operators, media companies and consumers. With an innovative suite of mobile life solutions, OnMobile transforms everyday mobile communication into an enjoyable, exciting and personal experience for consumers and a profitable opportunity for our customers. OnMobile creates engaging user experiences, and possesses an extensive multi-platform catalogue, leveraging best practices globally. From Music, Mobile Apps to Ring Back Tones, OnMobile has it all!

Excerpted from https://www.onmobile.com/investor-relations



Excerpted from https://www.onmobile.com/sites/defa...le-Buy-back-Daily-Reporting-April-08-2016.pdf

 

@New_Investor OnMobile doesn't do much besides VAS and subscription related products. Their major source of revenue is RBT (Ring Back Tones), and other VAS products. They do provide a VAS platform and have great contracts with all major operators (probably the only company in India with operator linkages for VAS across 60 countries). But they haven't shown a lot of promise in moving to other integration services like 4G etc. It seems like it is buying back shares for a possible acquisition. They are not experimenting much, just making their topline and bottomline better.

 

@dineshkapoor - UPI and RS Software.. What do you make of this space : overall potential and stock specific impact?

 

What is UPI? BSE Code?

 

@New_Investor I think what @darth meant was Unified Payment interface. RS Software is building that with NPCI ( See: https://articles.economictimes.indi...ftware-national-payments-corporation-a-p-hota )

@darth I think the potential is huge! Mobile money transfer is taking off and moving at breakneck speed and future is even brighter. (See: https://trak.in/tags/business/2016/02/23/npci-upi-potential-kill-mobile-wallets-india/). Govt's focus is to move to mobile payments and increasing use of smartphones and RBI backing is going to act as a catalyst I'd think.

Thanks for pointing this domain out. I forgot about it probably because my focus is currently on 4G and content explosion. RS Software seems a great opportunity if it is going to support expansion of this platform across India.

 

Thanks Dineshkapoor. But do you recall that RS Software stock was in trouble when their major client Visa setup their own unit in Bangalore? RS Software must have learnt a lesson and taken due care. Do you have any idea of their existing clients?

 

Please see this comments from a ex-employee of RS Software



Excerpted from https://www.glassdoor.co.in/Reviews/RS-Software-Reviews-E200992.htm

 

@darth, @dineshkapoor27, please watch the following video for interview of Rajnit Jain, CMD of RS Software

https://www.moneycontrol.com/news/b...at-opportunity-for-cors-software_6209121.html

UPI to revolutionise India; great opportunity for co:RS Software

 

@New_Investor thanks for sharing this. I feel that VISA contract cancellation was definitely a big blow, but I think thats pretty much priced in. This source of revenue is new, and will take its time to grow but I think the speed of growth will be quick. Its 4 crore right now, so short to medium term there might be some pressure. But it should pick up pace within 6 months.

 

RS up ~19% yesterday and 27% last 3 days

 

It jumped up much faster than I anticipated. Wanted to add more. Got some at around 78 levels.

 

I doubled my holding monday. The rally has been fast and furious