the changing role of mobile in india

7/27/2019 The Changing Role of Mobile in India

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The changing role of mobile in IndiaPreeti Chaturvedi

Event Reports

IAMAI Mobile Internet Conference, November 2013


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The changing role of mobile in India

Preeti Chaturvedi

Rising mobile internet usage is transforming the communications sector in India, a shift that will force growing numbers of

marketers to adapt their strategies.

This process was discussed in depth at the Mobile Internet Conference, an event convened by the Internet and Mobile

Association of India (IAMAI) in November 2013. Figures recently published by the organisation, in partnership with research

firm IMRB International, showed there were 205 million mobile internet users in India at the end of October 2013, a figure due

to hit 243 million by June 2014at which point India is set to leapfrog the US to become the second-largest market worldwide

on this measure, behind only China on 300 million.

Sanjay Goel, founder and chief executive officer of technology firm ACL Mobile, provided a statistical backdrop to mobile's

upward curve during the conference. In 1999, he reminded delegates, an incoming call was charged at Rs22.50 and an

outgoing call cost Rs.43.50, meaning the mobile phone was essentially a luxury product. Different demographic segments,however, were soon targeted by telcos keen to explore the wider growth opportunities on offer.

Ravi Jhakhar, managing director of ICE X Electronics, neatly described the contemporary landscape, which is starkly different

from a decade ago: "In this rapidly-evolving world, devices such as smartphones and tablets have emerged as the foundations

of the edifice of technological evolution. These devices are not just altering communication for the better, but also transforming

the manner in which people interact, execute their work and seek entertainment and knowledge."

Building on this idea, Vivek Jain, executive vice president at Naukri Product & Analyticsa unit of classified advertising group

Info Edgereported that the company was receiving a strong response from mobile users, a situation which is only likely to

improve further as this audience expands. "The rise from 100 million to 300 million [users] is very clear, and will be achievedwith consistent efforts and technological backing," he said.

Ravi Sunderajan, chief revenue officer of mobile-messaging platform Webaroo, was equally optimistic about the prospects for

the future. "There can never be a saturation point at this stage. It has not reached tipping point," he said. "There is a lot of

scope in the coming future; there are new avenues to be probed."

Many current users, he observed, already cannot imagine how to function without their mobile phone: "One feels very

incomplete and insecure without a mobile in his pocket. We are dependent upon mobile for most of our daily needs."

Title: The changing role of mobile in India

Author(s): Preeti Chaturvedi

Source: Event Reports

Issue: IAMAI Mobile Internet Conference, November 2013

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Research firm IDC reported that smartphone shipments in India rose by 229% to 12.8 million in the third quarter of last year.

The overall share of shipments taken by these devices stood at 19% in Q3 2013, the company continued, compared with just

7% a year earlier. The top four providersSamsung, Nokia, Micromax and Karbonntogether held 49.2% of the market.

In addressing the outlook for 2014, insights provider CyberMedia Research predicted that indigenous brands should take 47%

of smartphone sales in India over the course of this year as a whole, with many local firms seeking to expand overseas, too.

Deepak Khurana, chief executive officer and co-founder at ad exchange Vserv.mobi, talked about the broader developments

that are likely to reshape the mobile arena in India. While cash is the dominant form of payment today, credit and debit cards

are gaining ground, with internet and mobile banking also pegged to enjoy significant growth. Relatedly, app downloads are

expected to increase across the board, aided by the on-going growth of smartphone and tablet sales.

All this points to an expanding slate of options when it comes to generating revenue from the mobile channel, according to

Khurana: "Mobile internet monetisation can be through mobile advertising, in-app purchases, virtual goods and paid apps."

One common assumption is that most usage of the mobile web will be casual, meaning mobile ads and in-app purchases will

be particularly important, as items like virtual goods are mainly of interest to a smaller core of users.

"Monetisation strategies must be conceived from the beginning. But [the] initial focus on monetisation can make things very

tactical, or shift focus from creating a great experience. The first priority should be [delivering the] best

usability/gaming/entertainment/utility experience for the user. The focus should be on creating a mobile product which has the

potential to be loved by the user," Khurana said.

Vuclip, the mobile video and media provider, is well-positioned to tap into such a progression. Nikhil Naik, its director of global

distribution and content, suggested the role of phones was changing. "Earlier, mobile was used as a communications device.

Then it was linked to [the] internet, and all the benefits of a laptop were incorporated by technology in mobilethe major one

being faster networks and connectivity," he said. "The convenience of mobile over laptop is immense. The portability factor is

crucial."

Convergence is also exerting an enormous impact. "The recent advent of Tata Sky TV in mobile is a technological

breakthrough. Now people can watch TV on mobile. This brings entertainment inside the pocket. Advertisements and

revenues will pour in. This will generate immense additional revenues. The benefits will be reaped by the industry."

Equivalent trends are at work in the field of commerce. "The mobile internet is a good source of making payments like phone

bills, internet bills and online payments. The mobile internet has opened a door to make payments to many outlets. This has

added to the convenience of the mobile internet user," said Naik.

Vijay Shekar Sharmathe founder of digital goods platform One97 Communication and payments platform Paytmconfirmed

that shoppers were open to making purchases through this channel. "While 16% of smartphone and tablet users are currently

using mobile payment services, 74% are aware of such services and an additional 39% indicated they would be interested or

plan to use mobile payments apps," he said.

On a similar note, a 59% majority of mobile web users are aware of cloud storage solutions and 23% already leverage such

services, with many of these users willing to pay for premium services.


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About the author

Preeti Chaturvedi writes about marketing issues for a variety of online and print media in India and internationally,

and has contributed to publications including The New Indian Express, Business and Economyand Business

World.

She can be contacted at [email protected] , and blogs at chaturvedipreeti.wordpress.com.

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