iWorld
5G to challenge 4G services: Jio President
MUMBAI: With time, third generation services (3G) were replaced by fourth generation services (4G) and Reliance Jio played a vital role in the transforming phase. And once again India’s youngest telecom company is eager to quickly roll out the ultra-fast fifth generation services (5G).
While speaking to the Economic Times, Jio president Mathew Oommen spoke about the challenges which 4G will face after the deployment of 5G.
Oommen explained, “Once 5G digital services arrive, business will be based on the actual value that the telcos offer a consumer in terms of digital solutions, content, and services.”
He briefed about traditional pricing models being revamped, “4G will be challenged by the imminent wave of 5G services that will no longer be charged based on minutes, bits or bytes anymore.” Rather telcos would adapt to a new pricing mechanism which would look to measure the “overall revenue per subscriber” for a combination of digital services.
With that being said, Jio believes that it’s high time for telcos to “either disrupt the marketplace or face disruption”.
Oommen stated that “normalcy would soon get restored” in the telecom sector as once the telcos catch up with the technological advancement which will only increase usage that would drive compensation from newer services.
The 5G spectrum allocations will take place by the second half of 2019 according to the government. Jio Chairman Mukesh Ambani recently had said that India would be ready for 5G services by 2020. Jio has indicated its eagerness to roll out 5G services as it seeks an early auction of 5G airwaves, whereas Bharti Airtel and Vodafone Idea want the auction dates to be pushed back to late-2019 and 2020, respectively.
iWorld
Snapchat parent Snap cuts 16 per cent of workforce in AI-driven restructuring
The Snapchat parent is axing around 1,000 jobs and closing 300 open roles to save $500m, as artificial intelligence makes smaller teams the new normal
CALIFORNIA: Snap is snapping. The Snapchat parent has confirmed plans to cut around 1,000 employees, roughly 16 per cent of its full-time workforce, as it bets that artificial intelligence can do what headcount once required. Shares jumped more than 10 per cent in premarket trading on the news, a brisk vote of confidence from a market that has watched the stock shed about 31 per cent this year.
The restructuring, which also closes more than 300 open roles, follows pressure from activist investor Irenic Capital Management, which holds an economic interest of about 2.5 per cent in the company and has been loudly pushing Snap to tighten its portfolio and lift performance. The firm got what it asked for, and then some.
Chief executive Evan Spiegel told employees the cuts would reduce annualised expenses by more than $500m by the second half of the year. The company expects to incur charges of between $95m and $130m related to the layoffs, mostly severance, with the bulk landing in the second quarter. Staff in Snap’s North America team were asked to work from home on the day of the announcement.
The financial backdrop is not without bright spots. Snap expects first-quarter revenue to rise around 12 per cent to approximately $1.53 billion, broadly in line with analyst estimates. Adjusted core profit for the January to March quarter is forecast at about $233m, comfortably ahead of Wall Street’s expectation of $186.8m.
The harder question surrounds Specs, Snap’s augmented reality smart glasses subsidiary, which Irenic has urged the company to spin off or shut down entirely. The unit has absorbed more than $3.5 billion in investment and burns through approximately $500m in cash annually. Snap is pressing ahead regardless, with a consumer product expected later this year, even as Meta leads the market in the segment.
Spiegel is betting that leaner teams, smarter machines and a consumer AR play can restore Snap’s credibility with investors who have run out of patience. The redundancy notices have gone out. The harder restructuring, the one that requires a hit product rather than a headcount reduction, is still very much pending.
