Daily Pulse India: Heated Exchanges Between Facebook And TRAI, Digital Will Be The Ad King, Uber To Invest More?

Trading barbs: The heated exchanges between Facebook and the telecom regulator just went up a notch. After TRAI asked Facebook last week to explain the difference in the numbers of mails it claims were sent in support of Free Basics (Facebook claims 11 million mails, while TRAI puts the number at 1.35 million), the social media company has gone on the offensive. A top executive of Facebook has alleged that someone at TRAI has blocked mails from its website in support of Free Basics.

“On December 17 at 5.51.53 GMT, an individual with access to the TRAI email account designated to accept comments took action that blocked Facebook from delivering any additional email to that address," says Facebook.

 TRAI has responded publicly to the allegation, with three key points:

• The responses, sent as a template through a Facebook notification, do not answer TRAI’s specific questions.
• Users have not consented to Facebook speaking on their behalf on this issue.
• Why did Facebook take 25 days to raise this issue of an email issue?

 Net neutrality activists are of course crowing, urging people to ask Facebook why it kept this dispute a secret. However, TRAI’s point about template responses and turning a consultation process into a “crude majoritarian and orchestrated opinion poll” holds true for both parties. We can’t help wonder, though, if taking such a combative stand with the regulator will really help your case, Facebook?

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Spend more: Advertising spending in 2016 is expected to grow 15.5 percent over last year, driven mostly by digital advertising which is pegged to grow by nearly a half! TV will dominate about 47 percent of advertising, while print will shrink to 30 percent. The balance will be filled by, you got it, digital advertising. The big spenders will be consumer, auto and e-commerce companies. These are stats shared by media agency Group M, which is part of the global WPP group.

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Reliance shines: IT companies delivered tepid results and Reliance Industries has outshone them. A 40 percent increase in profit, at a 7-year high, beating street estimates. Low crude prices pushed down its costs (it makes polymers) and helped it shore up healthy margins, so it may not be true for other industries.

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Uber could double its investment in India if it sees more than five times the return, founder Travis Kalanick said. It is currently spending $1 billion in India to set up it’s biggest office outside the US. Uber is doing a lot of things differently to establish itself in India – accepting cash payments, testing out auto rides, so it’s quite possible that it could look at a bigger investment. But, as long as the rides continue to be as deeply discounted, returns will be a big question mark.

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Apple is still ambivalent about its plans to set up a manufacturing base in India, but it’s clearly looking more deeply at its India business. The latest we heard is that Apple has applied for a license to set up its own branded stores, compared with its current franchise model. The Apple aura isn’t working as well in this clearly price sensitive market, so other strategies have to come into play.

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Cover Image: Net neutrality protests. The drama has been on since April and it's time TRAI comes out with a clear stance on this contentious topic.

A Few Must Reads

India:

• As Arun Jaitley heads to the WEF at Davos, he takes with him the opportunity of a billion-strong market, says Anuj Puri.
• Food Advertising to Children in India: A classic case of setting the Cat among the canaries, says Sripriya Venkiteswaran
• Stock market investors, do not get taken in by fear, the reality is that the outlook is bullish, says Sandip Sabharwal
• Aamir Khan was sacked as brand ambassador for Indian tourism. Prabhakar Mundkar explains why.

International:

Global Daily Pulse: Big Tech's Child Labor Problem, Quick — Name Any CEO, Dinner is Served (My Way)

• I know you love me — now let me die. 
• How Tech is Helping Fashion Return to its Roots
• The Secret Behind Bloggers’ Impressive Incomes
• Is Davos an elite book club — or something even worse?

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