Chinese technology firm LeEco is attempting to achieve what no other smartphone manufacturer has attempted in India to date. The company is assembling its own delivery network in ten cities including the capital Delhi and financial hub Mumbai to deliver content to its smartphone users.
LeEco is putting up local servers for faster distribution of content as it tries to standout in a crowded and highly competitive market, in a bid to be the top online player within a few months and among the top three smartphone companies by the end of the year.
According to Atul Jain, COO of LeEco India, relying solely on the mobile phone is no longer profitable so they decided to set up CDNs in ten cities across the country. He added that they are negotiating possible tie ups with other operators, with the talks nearly complete with some telecom operators.
A content delivery network (CDN) is a globally interconnected system of proxy servers deployed in several data centers that are located close to where the clients are, providing for better user experience, particularly while streaming videos over the Internet. For India, LeEco is planning to partner with service providers in order to deliver third party content to its users, and it may even consider creating its own local content. It is has already established a partnership with Eros for videos-on-demand and YuppTV for television content streaming.
Jain further stated that phones only represent one of the verticals of the company which has acquired and produced content to put up a library consisting of more than 100,000 hours of TV episodes and more than 5,000 hours of movies in China. LeEco intends to launch televisions in India next month and electric cars later in the year.
Formerly known as Leshi Internet Information and Technology or LeTV Holdings, LeEco is duplicating in India its China model of creating an ecosystem composed of content, cloud, devices and a user interface platform. It is a strategic move because India has emerged as the fastest growing smartphone market in the world. Roughly seven million users access the company’s content in China.
LeEco currently operates 650 CDNs worldwide. Jain said those are connected through cloud, allowing the company’s smartphone or TV users to stream audio, video or internet TV content wherever they are. Experts claim that LeEco’s strategy to bank on content, instead of devices, differentiates the company from competitors in its home market, the Indian players and a plethora of Chinese players venturing into India like Coolpad, Oppo Meizu, and Zopo.
The Indian smartphone market is dominated by Samsung and Micromax, with Intex and Lenovo-Motorola battling it out for the third spot. Jain said they aim to be the number one online player within a couple of months and one of the top three players in the smartphone market by yearend.
LeEco said it managed to sell almost 220,000 smartphones via flash sales since the start of 2016. In order for its content strategy to be successful, the company will have to guarantee mass adoption of its phones and TVs. It is mulling local production of phones after opening a research and development facility in Bengaluru where it will have approximately 1,000 personnel dedicated to producing software for the Indian market.
The post LeEco Systems Setting Up Delivery Networks Dehli, Mumbai, and More appeared first on Stratusly.
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