According to reports, the proposed network infrastructure and services tax has been delayed until April 1 by the government-backed Open Network for Digital Commerce (ONDC). According to a media report, this choice was made following input from stakeholders and network members. It should be noted that ONDC first announced plans in December of last year to impose a tax of INR 1.5 on any transactions exceeding INR 250 starting on January 1.
Extension will Help Stakeholders in Aligning Transaction Process
According to the article, which cited ONDC’s communication to its network participants, the extension is meant to give stakeholders more time to synchronise their internal systems and guarantee a seamless transition. Only successful transactions over INR 250 that do not result in returns or refunds within the allotted time frame will be subject to the suggested transaction fee.
Orders that drop below the value barrier or are cancelled before fulfilment will not be charged the fee. The study also noted that up to January 31, ONDC had 173.5 million transactions. More than a month has passed since Thampy Koshy, the managing director and CEO of ONDC, stated that the company’s transaction volume has increased by about three times since December 2023 and is predicted to increase by seven to eight times by December 2025.
How the Entire Tax Dynamics Work?
The ONDC is a non-profit that aims to be a self-sustaining utility that facilitates digital trade, the network informed a prominent media outlet by email on December 15, 2024. In the upcoming year, a network fee will be implemented to accomplish this, eventually making it self-sustaining.
As a convenience charge, it would be simpler for vendor apps to transfer it to buyer applications. According to a network participant who wished to remain anonymous, “If a seller app receives between 4,000 and 5,000 orders per month, absorbing the network fee would mean INR 6,000 per month.”
According to ONDC, Shiprocket, Mystore, Magicpin, Growth Falcons, and a few more grocery players are among the top-selling applications in the food and beverage sector.
According to what the ONDC told the media outlet, its team works on protocol development and improvement, supports participants’ product and feature rollouts, brings supply and demand together, drives industry councils to develop roadmaps, supports sellers’ and network participants’ outreach and marketing, develops and improves network-level policies, develops and monitors standard operating procedures for network health and ecosystem development, supports capacity building and training, and responds
Why the Network Fee Being Charged to Sellers?
In e-commerce, platform fees are typically assessed on buyers, but ONDC is charging merchants instead. According to a person with knowledge of the situation, who was mentioned in a media house’s report on December 11 of last year, it is against one completed transaction that is collected at the seller’s end because all receipts would eventually reach the seller. When asked whether the network cost would be passed on to the buyer in any way, he replied that the vendor makes that decision. According to a survey by ONDC shareholders, there are 72 seller apps.
Rahul Mathur, a member of the investment team at venture capital firm DeVC, claims that, like all businesses, it requires funding in order to expand its network. The platform charge is expected to generate at least INR 11.25 crore in income for ONDC annually. ONDC may be able to break even with additional scale and more targeted platform increases.
The 5G network has been said to come into India in a few years. Jio has been working on it for the last year and had also announced about the 5G network in one of their Annual General Meeting. But now Airtel and Tata group have joined together to provide 5G network solutions in the country. In this article let’s look at how Tata group is helping Airtel to bring 5G in India.
The telecom major Airtel has announced that it has got into a strategic partnership with Tata group in order to implement its 5G network solution in the country. Airtel has conveyed that the company would be the pioneer for testing and launching the native solution as part of its plans for India in rolling out 5G solutions.
The company has announced in a statement that the pilot is expected to start by January 2022 as per the guidelines that are formulated by the Government of India.
How Tata Group is helping Airtel bring 5G in India
The Tata group has developed a telecom stack which is a state-of-the-art O-RAN (Open Radio Access Network) based radio and NSA/SA core. The company has been successful in order to integrate a completely native based telecom stack through leveraging the capabilities of its group as well as its partners. The company conveyed in a statement that the tech would be available for commercial development from the start of January 2022.
The Tata Consultancy Solutions is expected to contribute its expertise in the global system integration and is expected in aligning both the 3GPP and O-RAN standards in providing end-to-end solutions. TCS is a pioneer in software development and these networks and equipment are increasingly embedded in the software segment.
N Ganapathy Subramaniam representing the Tata group and TCS has stated that, As a group the company is excited about the opportunity that is presented by 5G and the adjacent possibilities and added that they are working towards developing networking equipment and solutions that is world-class in the networking space in order to address the business opportunities. They also added that they are pleased to have Airtel as their customer in this initiative.
Countries with most number of 5G installed in Cities
The MD and CEO of Bharti Airtel, Gopal Vittal had conveyed that they are really happy to join forces with the Tata group in order to make India a global hub for 5G and technologies related to it.
He added that, India is well-positioned with its talent pool and world-class technology ecosystem in order to build cutting-edge applications and cutting-edge technological solutions for the world. He also added that this step is expected to provide a massive boost to India in order to become an innovation and manufacturing destination.
These 5G products and solutions are Made in India and are aligned to the global standards and are expected to interoperate with other products based on certain standards that are defined by the O-RAN alliances and open interfaces.
Once the 5G solutions are commercially proven the diversified and brownfield network of Airtel would open export opportunities for the country which is now the second most market for the telecom services in the world.
Airtel is a Board member of the O-RAN Alliance and is committed towards implementing and exploring the O-RAN based networks in India. In early 2021, Airtel had become the first telecom company in order to provide a practical 5G service over its LIVE network in Hyderabad city. Using the spectrum that is allocated by the Department of telecom Airtel has started 5G trials in the major cities.
The media enterprises and the telecom of TATA group provide the requirements regarding communication from SMEs to global business houses and from home networks to wholesale networks. TATA consultancy services and Airtel both are a member of the O-RAN alliance.
FAQ
Will 5G be available in India?
Yes, Many telecom companies are preparing for 5G and India will be ready for 5G till 2022.
Which country are using 5G?
The top three countries that have the most cities with 5G are China at 341, the United States at 279, and South Korea with 85.
Is Airtel 5G ready?
Bharti Airtel become the country’s first telco to successfully demonstrate & orchestrate LIVE 5G service over a commercial network in Hyderabad city.
The Industrial Revolution of the 1800s came with unprecedented levels of production which greatly boosted the GDP per capita income of the economies in American and European nations. While this greatly reduced the need for imports in these Economies, Nations like India merely ended up as suppliers of raw materials and this had an adverse effect on the economy.
From then till now, there has been a lot of technological revolutions but none has come close to the role digitization and mobile broadband play in the growth of the Indian industry. The world is in the midst of yet another revolutionary change with the Information communication and technology industry and its focus on mobile broadband and the imminent rise of 5G technology that is expected to serve as a catalyst in this sector.
5G is a 5th generation technology that offers wireless connectivity across virtually all people and devices including objects and machines. Compared to its predecessors, 5G offers speeds in the range of multi-Gbps and reduced delays while improving reliability to assist with a wide range of critical activities such as remote surgery, self-driving cars, and increased surveillance, by offering lighting speed data with which movies can be downloaded within just seconds.
5G technology is all about the race to the future and whichever countries adopt this technology early in the race stands to gain a competitive edge among their rivals. However many countries are still early in their race to implement 5G networks due to the high cost and infrastructure required to implement the rollout of 5G technology.
Which country is ahead in 5G
South Korea has been one of the successful early adopters of 5G technology. American and European countries are not far too behind and have been heavily implementing 5G technology across their networks. China has also launched its own fully operational 5G network.
The rollout of its predecessors such as 2G, 3G, and 4G had been extremely slow in India with major delays in its implementation and this raises some questions on how India will fare in the race to setup 5G networks.
While the highly anticipated 5G is still in its planning phase, In December 2020, the chairman of Reliance Industries, Mukesh Ambani had revealed that his telecom company, Jio, would launch 5G networks in the second half of 2021 owing to native developed technology, hardware, and network components.
With the rise of mobile usage and increased need for data services, the digital economy in India is expected to reach 1 trillion dollars by 2025. With nearly 1.2 billion mobile users and 560 million internet users, India is the second-largest internet in the world. With a stride of developments, India had taken in the past years to enable digital growth, 5G is expected to add more in empowering a Digital India.
Industries that 5G begins to impact
Agriculture, Healthcare, Education, Automobile, Retail, Banking, Sustainable Energy, Tech Enterprises, Automation, Artificial Intelligence, Logistics Industry, Smart cities & smart homes, Gaming & entertainment Industry and Industry 4.0 are some of the fields being drastically altered by 5G technology. These are just some of the use cases I have provided at this time and 5G is enabling to do much more.
Majority of IoT devices of the future depend on 5G to provide connectivity and transfer massive sums of data to help companies bring more innovation. 5G is a major paradigm shift from 4G in the sense that 4G put the world in our hands and 5G seeks to do away with hands. IHS Economics projects that by the year 2035, 5G will enable around $12.3 trillion of the global economic output which from a business perspective will add a lot more jobs in the future.
Opportunities that 5G will provide to Startup Industry
The key to the successful implementation of 5G networks lies in the telecom partnering together with startups to focus on driving innovation and disrupting the marketplace. The usage of 5G technology is unlike other technologies where you build the block and the uses present themselves rather 5G should be geared towards specific and focused use cases.
Telecom ecosystem has a large responsibility to transition into 5G, they should be able to provide high speeds at zero near latency and should make it sustainable. Telecoms partnered with startup companies will likely lead to more use cases and new ideas being generated. For example, Radisys a company headquartered in the US which builds IoT and 5G product was acquired by Reliance Industries to help strengthen their 5G networks.
Mymo, an Indian based startup that makes chipsets for 5G devices and Signal chip which makes chipsets for a 5G powered modem is taking on Qualcomm a global giant in the 5G chipset segment.
FAQ
When 5G will launch in India?
5G will roll out in India by the end of 2021 or the beginning of 2022.
When will Jio launch 5G?
Jio is planning to roll out 5G in India in the second half of 2021.
Which countries have 5G now?
South Korea is the first country to deploy 5G network.
Conclusion
With all the hype surrounding 5G, it is easy to lose track of all the innovations it has to offer. The technological advances with 5G mean newer business models wherein it possible to decide and allocate resources over shared networks geared towards specific users to enhance their user experience without disturbing the existing users.
One of the biggest changes 2020 has brought in a company’s work culture is that most businesses have now switched to remote work.
Whether you are a two member team, or a large group of collaborators, work is mostly done remotely and might stay that way for a while. Even though there are a lot of advantages having small teams working from their homes, the biggest disadvantage to this type of collaboration is network barriers.
In a company, every team member shares the same network which made collaboration easy. Sending or receiving files instantaneously without having to rely on 3rd party solutions were the norm in offices. Needless to say, using different methods for sharing and collaboration via screen sharing is a tedious process, and its costs a lot in time and effort.
Remove all your network restraints and barriers using Simply5. This application allows your remote working teams to connect to a single virtual network and cast local web services, applications and file with just a click of a button.
Simply5 is a great addition to fasten your workflow and fulfill all your networking needs.
Simply5 CloudLAN will turn your remote working teams into local teams by allowing developers to access each other’s computers without any restrictions. You an also access code running on your colleague’s system, without any need to use server hosting.
You can access to CloudLAN room, a virtual private network which allows your users to connect and communicate with each other’s private IP’s as if you were sharing a local area network in your office.
Get access in real-time – Access and consume the latest version of Web Apps/ API as your team works on it.
Share your localhost – With Public and Team URL’s, share the latest version of code running on your localhost. Get an updated list of services hosted by your teammates.
Debug API’s faster – Using a Public URL, make under-progress API and websites accessible by anyone from anywhere without setting up servers.
Share files without uploading – Share files with complete privacy with P2P sharing. You need not compromise your security by uploading files on third-party apps and software.
Collaborating made easy with Private IP – Create quick demos and by sharing the project with anyone without relying on hosting servers.
Collaborate and share your project with your team
Secure access – Set up a collaborative and safe remote networking environment without any compromise in security. Simply5 lets you observe APIs and web apps in real-time as your team codes, making debugging lightning fast.
What is a CloudLAN room? It’s a virtual VPN network to which all your users can connect to & communicate with each other over private IP’s like you are connected on the same LAN network.
How many devices can be connected by a user? Each user can connect using 2 devices simultaneously to a CloudLAN room
What is a Server License? Servers feature is built for cases where you have an always-on machine to which you would like to have secure & private connectivity it. The adoption process is as simple as running a single command on the server terminal.
How is CloudLAN safe and secured? Each CloudLAN room is linked to a Virtual Network instance, to which the members are connected to using an encrypted tunnel. All the communication happens securely over this encrypted connection. Make sure you use Team VPN when connecting over unsecured public Wi-Fi networks for secure browsing.
How many rooms can a user create? There are no limits on the number of rooms a user can create, if you are part of multiple project teams please create multiple rooms & invite them to respective project rooms
Can a user create multiple rooms using the same lifetime deal? No, the One-lifetime deal coupon code is valid only for creating a single Room subscription.
According to a report of the Federal Trade Commission, 99% of all Multi-level Marketing (MLM) or Network Marketing companies fail, surprisingly, these failures come even before the companies have had a chance to flourish a profit.
Network Marketing is a type of business model which depends on person-to-person sales by independent representatives, mostly working from home. Also known as multi-level marketing, it involves a pyramid-shaped network of people who are responsible for the sales of the products. The participants in this network are usually paid on a commission basis for the following tasks like selling a product, their employees make a sale of the product.
This model involves a pyramid structure of non-salaried people who get paid whenever they or a person below them in the pyramid makes a sale. A common example is the Avon commission program in which women sold products for makeup, door to door. Modern examples include marketers who advertise the products of other companies on their own blogs or websites. Let us see the complete story on the topic- How does Network Marketing see a bump and a crash?
Network marketing industry took birth around 1886, with the start of Avon. Direct interaction with customers was greatly successful. Nutrilite in 1945 started an evolution when it came up with MLM compensation plans. In this, the individual representative got the opportunity of establishing their own business by bringing new distributors into the business and earning revenue from their own sales and the sales of the distributors.
When this plan succeeded, global players like Avon, Tupperware, and Amway stepped into international markets of India, Brazil, China in the 1990s .
Network Marketing came to India in the 1980s with companies like Amway, Avon, Oriflame, Modicare, etc. In less than two decades, the direct selling industry has furnished 5 million self-employment opportunities.
According to the blog post on the topic:- 10 most popular MLM multi-level marketing companies in India by bestwebsiteinindia.com
More than 1.5 million Amway Business Owners are present just in India.
Tupperware, Avon come under Fortune 500 companies.
Modicare has a network of about 2.5 lakh members.
MLM Business revenues were more than 4500 crores in 2015-16 based on the Indian Direct Selling Association report(IDSA).
Future looks promising for Network marketing in India, a report by KPMG in India and FICCI states a whopping growth of ₹645 billion by 2025. It almost doubled in the year 2016 when compared with the year 2011. From the report of Assocham, it is evident that it will touch the record of around 159.3 billion in 2021. The average sale is increasing for each individual, and it is almost about $300 annually.
According to a survey held during the year 2015-16, around 50,000 people gained benefit from the MLM opportunities offered by the direct selling companies. Government schemes like Digital India, Make in India, Skill India motivated the growth of network marketing.
Policies like FDI (Foreign Direct Investment) policy and consumer protection bill will offer a retaining environment for the MLM business.
It has also impacted social and economic factors like the empowerment of Women (around 3.4 million females are distributors of MLM business), Contribution to the Government Sector(helps in improving the Indian economy with its huge revenue), during the year 2013, the tax generated was around INR10 billion, started Social Responsibilities, Network marketing companies have supported social responsibilities. For example, Amway’s Sunrise project and Avon’s Breast Cancer crusade.
Even with several years of significant increase and contribution in the Indian economy, this industry is considered regardless of the business. This is due to the Ponzi and Money Circulation schemes. Lack of awareness and knowledge makes people fall in scams and blame the whole industry.
In most cases, a low success rate is the byproduct of poor planning or execution, perhaps even both.
Illegal companies were the biggest hurdles in making network marketing success. On 9th September 2016, the Indian Government issued the guidelines to regulate the MLM companies in India. Prior to this, there were 3000+ legal/illegal companies in India. After the regulatory, 90% of fake Ponzi schemes companies were shut.
The following schemes lead to the fall of the Network Marketing industry in India:
1) Pyramid Schemes
A pyramid scheme in Indian law is a scheme where the organizer forms a structure of a pyramid which starts with one person, who represents the tip of the pyramid and subsequently adds the levels below.
Recently, the Reserve Bank of India (RBI) cautioned investors against pyramid scheme fraud, that promise easy or quick money upon enrolment of members. The RBI advised that the public should not be tempted by promises of high returns offered by multi-level marketing companies, that run network marketing.
2) Money Circulation Schemes
A money circulation scheme is defined as any scheme which assures quick and easy earning money through money chain or if someone demands money from another in order to invest it into a money circulation scheme. Money Circulation Schemes or money chain business are not legal in India.
3) Ponzi Schemes
A Ponzi Scheme is a fraudulent investment scheme and is a kind of MLM fraud which promises a high rate of return to its investors.
The cash inflow of the new investors is used to pay returns to old investors. Thus, any problem with the constant flow of investors makes the whole scheme crash. for example, as many as 650 people, especially housewives, were duped of more than Rs 8.16 crore in the nut case fraud in Cyberabad.
The busting of multi-level marketing (MLM) companies fraud by the Cyberabad police resulted in the freezing of Rs 550 crore in bank accounts.
4) Chit Funds
A chit fund is defined as a transaction by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money by way of regular instalments over a definite period.
Each such subscriber in chit fund shall, in his turn, is entitled to the prize amount.
The way it works is that a group of people contribute a fixed sum of money after this, any member can draw a lump sum through ways such as a lucky draw.
From the above statistics, details, it can be deduced that the Network Marketing industry has great potential to develop more success in the future of India. Prediction is that will reach around network marketing growth in India 159.3 billion in 2021 and INR645 billion by 2025. It involves 58% of women workforce.
Although choosing a reliable MLM source is crucial otherwise one can easily fall into scams and lose crores of money.
The next time offers an easy business that will change your fortunes, think twice!
FAQs
What is the future of network marketing in India?
Beginning as a part-time job, direct selling has now a proper path in career-building opportunities. In the spam of the last five years, it has emerged as a viable source of income and growth in business marketing. Network marketing growth in India has drastically spiked in recent times.
What is the scope of Network Marketing?
To promote Network Marketing business and direct selling Indian Govt approved 100% FDI Policy. So we can say that the future of network marketing is very good in India and this sector will give lots of jobs opportunity. You can join any best direct marketing companies in India to start extra income.
Nitin Konde
