Amazon, Flipkart creating jobs only for delivery boys: Manufacturers’ body FISME

Agencies
January 16, 2020

Claiming that e-commerce giants like Amazon import as much as 80 per cent of the items sold on their platforms, small manufacturers' body has said that their business models do not benefit local industry and are creating jobs of delivery boys only.

"Neither manufacturers nor traders are getting any benefit from the business models of Amazon and Flipkart because they largely import their products from China and Korea and sell here. Nearly 80 per cent of their products are imported," said Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME).

Bhardwaj said that the global e-commerce players generally source and sell products through their own preferred suppliers and as a result a large number of local manufacturers and traders get crowded out.

He listed out deep discounting and buying products from preferred companies as unfair practices.

"Even if they buy products from local suppliers the commission charged is very high," Bhardwaj said adding that the issues related to unfair practices have been raised with Commerce Ministry on multiple occasions.

FISME maintains that the technology-driven retail is way forward and one cannot be oblivious of the benefits it brings to consumers but at the same time the local industry can also not be ignored given its role in job creation.

"If both traders and local manufacturers are crowded out then how would the local industry survive and employment be generated?" asked Bhardwaj.

As Amazon Founder and CEO Jeff Bezos is currently on his three-day visit to India, the local traders are up in arms against the "unfair" trade practices of the tech giant. Delhi-based Confederation of All India Traders (CAIT) has launched a countrywide protest against the company and has organised protests across 300 cities.

In a setback to Amazon and Walmart-backed Flipkart, the fair market watchdog Competition Commission of India (CCI) has ordered probe into the business operations of both the companies on multiple counts including deep-discounts and exclusive tie-up with preferred sellers.

"For the first time some concrete step has been taken against Amazon and Flipkart who are continuously violating the FDI policy in indulging in a vicious racket of controlling and monopolising not only the e-commerce but even the retail trade as well," CAIT National Secretary General Praveen Khandelwal said after the CCI order.

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Agencies
May 27,2020

Due to impacts of COVID-19, shipments of total mobile phones are forecast to decline 14.6% in 2020, while smartphone shipments will achieve a slightly slower decline of 13.7 % year over year to total 1.3 billion units this year, according to a Gartner forecast on Tuesday.

"While users have increased the use of their mobile phones to communicate with colleagues, work partners, friends and families during lockdowns, reduced disposable income will result in fewer consumers upgrading their phones," Ranjit Atwal, Senior Research Director at Gartner, said in a statement.

"As a result, phone lifetimes will extend from 2.5 years in 2018 to 2.7 years in 2020," said Atwal.

In 2020, affordable 5G phones were expected to be the catalyst to increase phone replacements, but now it is unlikely to be the case.

5G phones are now forecast to represent only 11% of total mobile phone shipments in 2020.

"The delayed delivery of some 5G flagship phones is an ongoing issue," said Annette Zimmermann, Research Vice President at Gartner.

"Moreover, the lack of 5G geographical coverage along with the increasing cost of the 5G phone contract will impact the choice of a 5G phone."

Overall, spending on 5G phones will be impacted in most regions apart from China, where continued investment in 5G infrastructure is expected, allowing providers in China to effectively market 5G phones.

The combined global shipments PCs, tablets and mobile phones are on pace to decline 13.6% in 2020, according to the forecast.

PC shipments are expected to decline 10.5% this year. Shipments of notebooks, tablets and Chromebooks are forecast to decline slower than the PC market overall in 2020.

"The forecasted decline in the PC market in particular could have been much worse," said Atwal.

"However, government lockdowns due to COVID-19 forced businesses and schools to enable millions of people to work from home and increase spending on new notebooks, Chromebooks and tablets for those workers. Education and government establishments also increased spending on those devices to facilitate e-learning."

Gartner said that 48 per cent of employees will likely work remotely at least part of the time after the COVID-19 pandemic, compared to 30 % pre-pandemic.

Overall, the work from home trend will make IT departments shift to more notebooks, tablets and Chrome devices for work.

"This trend combined with businesses required to create flexible business continuity plans will make business notebooks displace desk based PCs through 2021 and 2022," said Atwal.

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Agencies
July 13,2020

New Delhi, Jul 13: The Telecom Regulatory Authority of India (TRAI) has blocked Bharti Airtel's Platinum and Vodafone Idea's RedX premium plans that offer faster data speeds and priority services to customers as both the plans were violating net neutrality norms.

The telecom watchdog has asked Bharti Airtel to explain within seven days how such a similar plan being launched does not violate the rules of net neutrality.

Vodafone Idea's RedX plan has been in the market since November 2019. They made some modifications in May 2020 and the Bharti Airtel was soon going to launch a similar plan.

According to TRAI, the higher speed for premium customers discriminate against others and violates net neutrality.

Responding to TRAI's move, Airtel spokesperson said: "We are passionate about delivering the best network and service experience to all our customers. This is why we have a relentless obsession to eliminate faults and have been consistently recognised by international agencies as the best network in terms of speed, latency and video experience."

"At the same time, we want to keep raising the bar for our post-paid customers in terms of service and responsiveness. This is an ongoing effort at our end," the spokesperson said.

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Agencies
February 17,2020

Google on Monday announced it is gradually winding down its free public Wi-Fi Station programme currently available at over 400 railway stations in India, and will work with the Indian Railways and Railtel Corporation to help them with existing sites so they can remain useful resources for people.

Google launched its Station initiative in India in 2015 to bring fast, free public Wi-Fi to over 400 of the busiest railway stations in the country by mid-2020.

"We crossed that number by June 2018 and implemented Station in thousands of other locations around the country in partnership with telecommunications companies, ISPs and local authorities," Caesar Sengupta, Vice President, Payments and Next Billion Users, Google, said in a statement.

"Over time, partners in other countries asked for Station too and we responded accordingly. We're grateful for these partnerships, especially with the Indian Railways and the Government of India, that helped us serve millions of users over the last few years," he added.

According to Google, the decision to shut Station has been taken keeping the affordable mobile data plans and mobile connectivity in mind that is improving globally including in India.

"India, specifically now has among the cheapest mobile data per GB in the world, with mobile data prices having reduced by 95 per cent in the last 5 years, as per TRAI in 2019," said Sengupta.

The Indian users consume close to 10GB of data, each month, on average, according to reports.

"Our commitment to supporting the next billion users remains stronger than ever, from continuing our efforts to make the internet work for more people and building more relevant and helpful apps and services," Sengupta noted.

Global networking giant Cisco last year teamed up with Google to roll out free, high-speed public Wi-Fi access globally, starting with India.

The first pilot under the partnership was rolled out at 35 locations in Bengaluru.

Sengupta said that in addition to the changed context, the challenge of varying technical requirements and infrastructure among our partners across countries has also made it difficult for Station to scale and be sustainable, especially for our partners.

"And when we evaluate where we can truly make an impact in the future, we see greater need and bigger opportunities in building products and features tailored to work better for the next billion user markets," he said.

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