Mdc2010 Key Note

Developer say “App”, Consumer says “Experience” R.N.Prabhakar 27 th March, 2010

Agenda Telecom Scenario in India Technological Developments Impact of Telecom on Society Need for Mobile Applications Market for Applications Marketing of Applications Conclusion

Telecom Scenario in India The world has witnessed rapid growth and technology changes in Telecom India has also experienced very fast growth in this sector Annual compounded growth of 45% over last three years 10-15 years back the network was service specific Separate services for voice, data & video Technological developments have enabled seamless integration of voice, data, and video

Telecom Scenario in India (2) Growth is primarily in mobile subscribers This growth is mainly in voice segment Contribution of Value Added Services (VAS) towards operators revenue is about 10% Primarily in SMS, Ring Tones, Caller Tunes

Telecom Scenario in India (Users Statistics) 49.50 Total Teledensity (telephones/100 population) Various Statistics as on 31.01.10 19.09 Rural 105.84 Urban 8.03 mil Broadband Users 14.62 mil Internet Users (Sept 09) 36.76 mil 545.05 mil Wireline Wireless 581.81 mil Total Telephone Subscribers

Telecom Scenario in India (Revenue) (in Rs. Crores) 1731 3178 Spectrum Charge(2008-09) Half Yearly (2009-10) 4957 9601 License Fee (2008-09) Half Yearly (2009-10) 58848 113013 Adjusted Gross Revenue (2008-09) Half Yearly (2009-10) 77963 152360 Gross Revenue (2008-09) Half Yearly (2009-10) Revenue Statistics

Technological Developments Existing networks are mainly voice and low speed data 2G/2.5G Developments are towards voice and high speed data IP, NGN, 3G, LTE, Wi-Max, 4G These have enabled convergence of networks and services High speed transmission of information via broadband and dedicated leased circuits Developments in IT field has provided integration of various facilities

Impact of Telecom on the Society Mobile telephone is an ubiquitous tool of today It has transformed the life of people in various aspects Personal communication Commercial communication Life style of high mobility and connectivity An important and inevitable foundation for sustainable economic growth for any nation in the world There is need to install new technologies in India To give digital experience at different levels of affordability to Indian population Offer options required to generate value for them

Need for Mobile Applications Basic voice service revenue is decreasing Customers can afford additional facilities within their budget Penetration of telecom in rural areas is increasing In India by 2012 it is projected that more than 50% growth in users will be in rural markets Rural masses require VAS to generate value for money spent by them on telephone facility

Need for Mobile Applications (2) The ARPU (average revenue per user) is reducing for service providers They need to increase the revenue through VAS Basic VAS (SMS & mobile music) contributes about 10% to the current total revenue of service providers This is not a sufficient revenue model There is need to develop advanced VAS to trigger growth in revenue

Need for Mobile Applications (3) Handsets are coming with lot of advanced features e.g. Color+touch screens Polyphonic tones GPRS connectivity Prices of handsets are falling Smart phones with larger screens, greater processing power and real or virtual keyboards are becoming popular Estimated that they will account for 30% of the global handset market by 2012

Need for Mobile Applications (4) Thus there is need to develop advanced VAS e.g. video portals and video ring back tones location based services mobile advertising near field communication mobile internet social networks remote access network Telecom technologies, IT developments & handsets are capable of handling various types of advanced VAS

Need for Mobile Applications (5) Security of the network is vital. Must guard against unauthorized access malicious and unsolicited content delivery network disruption Must provide comfort level to customers regarding security and confidentiality of transactions and information

Market for Applications The requirement of applications are dependent upon the customers profile Education Nature of job Age and gender Type of city Busy business executives, educated urban customers may need information and commerce related VAS more than entertainment Rural middle aged population may need VAS related to agriculture, market information, health and e-governance Rural young population may need more information related to education

Market for Applications (2) Entertainment related VAS may be required by almost all strata of population with varying degree of expenditure Thus the demand for VAS is huge but identification of need of various segments of population is a challenge Technology is capable of providing large variety of information/ commerce/ entertainment services, through mobile telephone & broadband network, which a person at present avails by physically going to the facility provider

Marketing of Applications VAS value chain comprises of content owners, service providers, technology enablers/content aggregators, handset manufacturers The marketing strategy varies from country to country In some developed countries it is done by content developers for basic handsets For smartphones it is led by device manufacturers through application stores

Marketing of Applications (2) In India VAS is mainly promoted by telecom service providers for both basic and smartphones Majority of customers use basic handsets and prefer converting them into smartphone by application download The VAS industry is at a very nascent stage It may take time to develop a successful business model In the current scenario service providers and VAS developers need to have mutual understanding for delivering these services for the synergetic growth

Marketing of Applications (3) Indian market is highly price sensitive There is large diversity in customers Large population lives in rural areas Several regional languages Variegated education level amongst States TRAI has issued various guidelines for providing VAS Explicit consent is a vital aspect There is need to develop content in regional languages

Marketing of Applications (4) Multilingual handsets are being developed There is need to develop VAS on voice prompt concept as well Education of existing & prospective customers is an important requirement for popularizing VAS Provide innovative contents and exciting offerings to customers Also assure customers about reliability, quality and consistent delivery of the product

Conclusion Auction of spectrum for 3G/ BWA is scheduled for 9 th April, 2010 This will open the field for delivering advanced applications Potential for such applications is huge There is definite need for innovation in VAS The marketing model of VAS will depend upon the type of application and market conditions

Conclusion (2) Customer pull concept will give better revenue instead of customer push concept Hybrid concept is also possible Various stakeholders in the VAS ecosystem have to work in tight cooperation for the delivering applications that will attract customer interest

Thank You R.N.Prabhakar Ex Member TRAI Mob: +91 9868126363 Tel: +91 120 4295666 Email: ravi@prabhakars.org [email_address]

Mdc2010 Key Note

More Related Content

What's hot

Similar to Mdc2010 Key Note

More from momobangalore

Mdc2010 Key Note