The changing role of mobile in India

Preeti Chaturvedi
Event Reports
IAMAI Mobile Internet Conference, November 2013

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 2014 at 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 & Analytics a unit of classified advertising group
Info Edge reported 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 achieved
with 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

Downloaded from warc.com

2
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 providers Samsung, Nokia, Micromax and Karbonn together 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 mobile the 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 Sharma the founder of digital goods platform One97 Communication and payments platform Paytm confirmed
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.

Downloaded from warc.com

3
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 Economy and Business
World.
She can be contacted at preeti.chaturvedi@gmail.com, and blogs at chaturvedipreeti.wordpress.com.








All rights reserved including database rights. This electronic file is for the personal use of authorised users based at the subscribing company's office location. It may not be reproduced, posted on intranets, extranets
or the internet, e-mailed, archived or shared electronically either within the purchasers organisation or externally without express written permission from Warc.

Downloaded from warc.com