Mdc2010 Key Note
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Transcript of Mdc2010 Key Note
Developer say “App”, Consumer says
“Experience”
R.N.Prabhakar
27th 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
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)
Various Statistics as on 31.01.10
Total Telephone Subscribers 581.81 mil
Wireline
Wireless
36.76 mil
545.05 mil
Internet Users (Sept 09) 14.62 mil
Broadband Users 8.03 mil
Teledensity (telephones/100 population)
Total 49.50
Urban 105.84
Rural 19.09
Telecom Scenario in India (Revenue)
Revenue Statistics (in Rs. Crores)
Gross Revenue (2008-09)
Half Yearly (2009-10)
152360
77963
Adjusted Gross Revenue (2008-09)
Half Yearly (2009-10)
113013
58848
License Fee (2008-09)
Half Yearly (2009-10)
9601
4957
Spectrum Charge(2008-09)
Half Yearly (2009-10)
3178
1731
Technological Developments
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 Society
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
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
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
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
Conclusion
Auction of spectrum for 3G/ BWA is scheduled for 9th 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.PrabhakarEx Member TRAIMob: +91 9868126363Tel: +91 120 4295666Email: [email protected] [email protected]