Smart-phones to make up half of Asian sales by 2015

Singapore: Smart-phones will make up over half of Asian mobile phone sales by 2015, with 477 million units likely to be sold, reports PTI quoting an industry report.

Consultancy Frost and Sullivan said smart-phones would account for 54% of the Asia-Pacific mobile market in five years, up sharply from 5% in 2009.

The sharp take-up rate for smart-phones will be a huge revenue boost for telecom operators as it means a surge in demand for data services, the consultancy said.

The consultancy said data usage from smart-phones would generate over $38 billion for the region's telecom operators by 2015, from slightly over $1.3 billion last year.

Smartphones are high-end mobile devices providing faster access to data connections such as e-mail and Internet browsing than so-called feature phones, which have less computing ability.

Subscribers usually pay more for mobile data services, translating into higher average revenue per user (ARPU) for operators keen to make up for flat or declining earnings growth from feature phones.

"Smartphones are critical to every operator's mobile broadband business case, as a smartphone user's ARPU typically increased by 25% to 100% after adoption depending on the market," said Marc Einstein, the consultancy's industry manager.

"The Asia-Pacific market is particularly interesting for smart-phones as there has been significant uptake in emerging markets like China, India and Indonesia, even among prepaid users," he said in the report.

Apple's phenomenally popular iPhone and Research in Motion's BlackBerry, a favourite with corporate users, are largely credited with sparking consumer interest in smart-phones in the last few years.

Despite the upbeat assessment, telecom operators still need to overcome a few hurdles, Frost and Sullivan said.

"Eighty per cent of Asian mobile users use prepaid cards, and in fact in many markets are as high as 97%, making smartphone subsidies impossible for most users," said Mr Einstein.

"Furthermore, there is a lack of public Wi-Fi, particularly in emerging markets, which has been a smartphone saviour in the US and other developed markets.
 

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DTC Bill in current session of Parliament: Official

New Delhi: The government plans to introduce the Direct Taxes Code (DTC) Bill, that will replace the archaic Income Tax Act, in the current Monsoon session of Parliament, reports PTI quoting a key finance ministry official.

"We do expect the DTC to be introduced in Parliament in this session," revenue secretary Sunil Mitra told reporters on the sidelines of a CII event.

The current session of Parliament ends on 31st August.

Mr Mukherjee in his Budget speech had indicated the Centre's intention to implement the DTC from 1 April, 2011.

After holding discussion with the industry and other stakeholders the government came out with a revised DTC draft in June.

The DTC, on which the government had invited public comments twice, will replace the archaic Income Tax Act, 1961.

DTC and Goods and Services Tax (GST) are the two major tax reforms that the government is aiming to introduce by 1 April, 2011.

DTC aims at reducing tax rates, but expanding the tax base by minimising exemptions.

Last month finance minister Pranab Mukherjee had said the government would introduce the DTC Bill in the monsoon session of Parliament.

He said that the new direct tax law, which seeks to substantially change the direct taxes regime, will make "Indian trade and industry globally competitive.

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COMMENTS

kishore ghiya

6 years ago

It will be of great benefit to small investors having incomes upto rs 20 lacs as far as capital gains are concerned. Though my views are not liked by big CA firms looking after interest of their HNI clinets.
Simply for income upto rs 10 lac Long term capital gain will be taxed at 5% against zero now,short term will be 10% against present 15%.But gerat advantage is your 80 (c) linit is incerased to 3 lacs extra 2 lacs to save tax,it will be terated as business income and hence all expenses like interest on loan,salary to college kid for office work and car deprecition will be allowed,which as denied to investor.After adjusting loss in certain script no small indian investor will be paying any tax on share transaction.
still it is being wrongly criticesed.
mo 9825217857

SEBI asks MFs to furnish distributor commission details

The regulator wants to make sure that fund houses are not distributing commissions from investors’ pockets

Market watchdog Securities and Exchange Board of India (SEBI) has once again turned the heat on mutual fund distributors. The regulator has sought details of commissions paid out to distributors over the last 10 months from asset management companies (AMCs). Some fund houses have already submitted this information to the regulator while others are in the process of doing so. According to industry sources, the regulator wants to ensure that AMCs are complying with SEBI's recent diktat which disallowed fund houses to disburse upfront commissions from the load account. AMCs had to comply with this rule from 1 April 2010.

"We are not paying commission from the load account. The problem is peculiar with fund houses which are in existence since the last 7-10 years. Their load accounts will be heavy. AMCs which have entered the business recently will neither have many schemes nor much money in their load accounts," said an official from a mid-sized fund house. Typically, it is Unit Trust of India that can pay a lot of money from its load accounts.

Equity schemes come with a lock-in period of one year while equity-linked saving schemes (ELSS) have a three-year lock-in period. If an investor exits the scheme before this lock-in period, the fund house charges 1% exit load. This money is stored in the load account and is utilised for investors' benefit. SEBI has been asking fund companies to carry out investor education programmes with this money.

There are variants of incentive structures like age-wise (tenure of investment holdings) and target-wise commission (among others) which are offered to intermediaries. Big fund houses that are ready to push their funds by going that extra mile are paying money from their own pockets. The distribution of schemes is carried out by filtering the top performing schemes. The schemes which have a consistent track record are pushed. Some industry players say that national distributors are only pushing schemes of a few fund houses which are ready to pay a handsome commission in return for sales.

Distributors are now paid 45 to 75 basis points (bps) trail commission depending on the fund house. Moneylife had earlier reported on how fund houses were offering upfront commission to the tune of 2%-3% under ELSS.
See: (http://www.moneylife.in/article/8/4440.html).

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COMMENTS

shankar

6 years ago

I think Mr Bhave is taking out some personal enimity with the IFAs.Firstly he banned the entry load and now he is not satisfied with that.He is now again trying to ban the small amount that the AMCs are giving.Is any thing wrong with mr bhave.Does he not see who is selling mf wrongly.the IFA or the Bankers...I think there is something with the bankers

shankar

6 years ago

Mr Bhave...what do u think of urself..hitler or chengez khan..2m Un logo ka pairo ki dhul bhi nahi ho.2mhe bahut baddua lage hai...ur going 2 suffer

surendra

6 years ago

SEBI is actually trying to make cler the way for big layers who can milch well investors, there in insurance field even 505 comission is being given out of peoples pocket, the SEBI is happy.

gautam

6 years ago

i want to ask mr. bhave what types of mutual fund selling Bankers. most banks are misselling mutual funds. they selling mutual funds only because of how much commission getting & gift

ganesh

6 years ago

After the entry load ban the retail investor is affected more and in industry the retail money will back long time but mr bhave is thinking that he is doing favour to the investor actually speaking he is pass the rule to kill the retail investor and i will ask mr.bave how to collect money or service charge from a investor who is investing Rs500/- sip is it possible to collect 2% every month from him or in what manner a distributor will do service to the clients. Distributor did not have any problem he will sell another products, and finally he is not at all did any favour to the investor.

Abhijit

6 years ago

Entry load should be proportional. The longer is the stay in Mutual Fund the shorter is the entry load. This is the best formula for Mutual Fund industries. SIP should be “no-entry load” as like it were in 2003-04 era in all AMC.

sharath

6 years ago

All this drama for a mere 2%. Bhave a personal question to you. Who do you think is the common man getting ripped by the most Bankers or Individual agents. You must first look at the amount of false selling that happens at the bank.

Why are banks given the permission to sell investments any way. Who do you think sells the most in insurance policies . you got it right (HOPEFULLY) the BANKERS. If you sincerely looking at safe guarding the interest of the investors, have the rights of bankers being able to sell investments terminated. On a second thought, forget about it. I & everybody else knows you & your team are on the other side

Bornali

6 years ago

I/we invite Sebi chairman to come N. E State n see how distributor work. He is a brainless

pgprabhu

6 years ago

I have a suggestion. Anyway Mr. Bhave is not going to get any extention. so why dont he pass an order that Mutual Fund Industry in India stands closed from the date he is relieved from office.I think that will be the greate service to nation

REPLY

Roopsingh

In Reply to pgprabhu 6 years ago

I support your stand-and all distributors should ask president of india to award Mr bhave ''BHARAT Ratna"" for killing MF industry and IFA's without a bullet shot-award should be given during with big guard of honour from all existing IFA's.

shankar kumar

In Reply to Roopsingh 6 years ago

As Mr Bhave...has killed the IFA and made them starve I pray ti God that He n his family also starve.

Roopsingh

In Reply to shankar kumar 6 years ago

I guess Mr Bhave does not believe in god-so he does not fear doing such sinful acts.USE APNE PAPO KA KOI MALAL NAHI HAI-

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