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Reliance Jio, China’s Omnicom fuel massive global mobile data traffic
NEW DELHI: Global mobile data traffic growth reached a six-year high in the third quarter of 2017, increasing by 115 per cent worldwide year-on-year with China and India—riding on Reliance Jio primarily—accounting for half of all traffic growth globally, according to new report released yesterday.
According to Strategy Analytics’ latest `Wireless Operator Performance Benchmarking’ database and accompanying report, Reliance Jio, China Unicom and Vodafone drove accelerated mobile data traffic growth in Q3 2017.
India and China accounted for half of all traffic growth globally with Jio’s continued disruption in India and strong growth in unlimited data plans in China driving both of those markets. In Europe, Vodafone has enjoyed healthy early traction for its zero-rated Passes, the report said.
Strategy Analytics provides competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success.
Other key findings of the report include:
— Reliance Jio was carrying more data traffic than any mobile operator globally within six months of launch, but its disruptive impact on the market has meant profitable traffic growth has been hard to find.
— Unlimited plans have accelerated traffic growth in China, up 166 per cent year-on-year in Q3 2017 and have generated a healthy recovery in both service revenue and EBITDA.
— Vodafone had eight million customers using Passes by the end of September 2017, with a positive impact on ARPU and usage. It has delivered 2.6 times growth in traffic in Europe over the last two years with near-flat opex.
Phil Kendall, report author and director, Service Provider Group, in a statement said, “It is encouraging to see more success stories from operators using unlimited or zero-rated pricing to unlock growth in both revenue and profitability. The success of China’s Unicom’s unlimited plans and collaborations with local internet giants highlights the importance of partnering with content providers to add value to data plans.”
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Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
