iWorld
Video streaming fastest growing service on mobile data in India: Ericsson
MUMBAI: Video streaming accounts for the fastest growing service on mobile data, followed by social networking.
According to a report titled ‘The Changing Mobile Broadband Landscape’ released by Ericsson ConsumerLab, 70 per cent of mobile broadband smartphone users regularly stream videos on their smartphones, and 61 per cent use social networking. Indian smartphone users are also seeing greater potential in mobile broadband when it comes to facilitating the way they handle their money and personal finances. The convenience and improved experience makes m-commerce services attractive to Indian smartphone users.
Of those users not using e-commerce services currently, 58 per cent stated that they would begin to do so in the next six months, while 52 per cent will use the Internet to pay bill online. Services like location navigation while travelling and cloud storage are also seeing an upswing in usage.
The report highlights the evolving mobile broadband adoption and usage in urban India. The report reveals diverse behavior and needs of different mobile broadband users and the need for service providers to offer personalization. Users’ needs are evolving as usage of services and applications on smartphones is becoming a way of life.
With the decrease in smartphone prices, the adoption of mobile internet within the lower socio-economic segment has increased over the last two years: from 38 per cent in 2013 to 45 per cent in 2015. Three in five smartphone users use mobile broadband in urban India. Mid-size and small cities are showing higher smartphone penetration levels at 33 per cent, as opposed to the smartphone penetration levels of 27 per cent in big non metros and large cities.
At the same time, the proportion of smartphone users above the age of 50 has quadrupled, from one per cent in 2013 to four per cent in 2015. The primary motivation for this increase is the desire to be connected with loved ones in different parts of the country and the world, particularly through emails, chat applications and instant messaging.
Ericsson India vice president and head of strategy and marketing Ajay Gupta says, “The Internet is finally coming of age and is empowering cross sections of Indian society. Though the most used smartphone services in India are for social networking and instant messaging, the usage of banking, e-commerce, navigation and cloud storage apps and services is increasing. It is for this reason we are seeing uptake and digital transformation of many industries like retail, transportation, and banking.”
Users face differing mobile data issues depending upon location. Connection quality and reliability problems have a higher tendency to occur indoors, while session failures and poor app accessibility are problems faced by outdoor smartphone users. Sixty-three per cent of users report that they face quality and reliability issues, such as lost connections and inconsistent network speeds, when using mobile networks indoors. App-related issues while outdoors or commuting, such lengthy lag times, apps taking a long time to refresh, maps failing to load, and session failures affect 68 per cent of consumers. Such problems are more common in mid-size and small towns compared to large cities.
For those consumers in India who do not use mobile broadband, affordability and digital literacy are the prime obstacles to adoption. While 88 per cent of Indian consumers on 2G feel that mobile broadband is too expensive, 53 per cent feel that mobile broadband adds no value and as many as 48 per cent believe there is no difference between 2G and 3G speeds.
Mobile Internet usage is expected to grow with the consumers’ better understanding of the data plans on offer. As per the study, only 10 per cent of mobile Internet users feel they understand their plan perfectly, and are able to make an accurate judgment when deciding on a plan.
Gupta says, “When consumers are confident in their understanding of what is offered, they tend to perceive better value from it. In fact, they consume twice as much data compared to users who find it difficult to understand their plan.”
“Understanding the main aspects that are valued by customers can help service providers differentiate their offerings and improve consumer experience which would help increase consumer loyalty. Personalization is being positively viewed and increasingly demanded by consumers,” he adds.
iWorld
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.
