Mobile Service Boom in India300 million cell phones vs. 30 million PCs
Indian mobile market is ranking in the second place on earth. Today about 300 million people are using cell phones and 8 million new subscribers sign up every month. Last year Indians spent about $250 million on extra services such as text messaging, games, wallpaper for mobile display, music and internet. Why demand for these services is huge? Because there are only 30 million PCs in the country and e-commerce is still not popular through Internet. Therefore average revenue in the country is $10 compare to China $12 and $30 in United States and the mobile cost per minute is as little as 1.2 cents vs. 8.4 cents in Pakistan and 3.5 cents in China. So while offering low price calls many services remain luxury for many Indians who use cheap cellular phones but want the same services available for premium handset. The demand for these extra services became a reason for many multinationals like Google, Yahoo and Microsoft’s MSN to be sharer in the market. They are cooperating with great number of top telecom providers such as Vodafone, Reliance Communication and Tata Teleservices in order to offer information like taxi services, stock quotes, news and hospital and business listings. The range of offerings is extensive. Airtel, Indian leading company offers weather forecasts and sells mobile services which allow users to make purchase in stores and book train and flight tickets using their mobile instead of credit cards. Hence by these services telecom providers want to increase the share of their income currently 10% of revenue and 13% of profits on average, to about 20%.
“India is leading the way for mobile solutions globally.” Manoranjan Mohapatra CEO at carrier Bharti Telesoft.
Opinion
I think Indian telecom providers can increase their revenue share if they find the ingenious ways to fulfill needs of mobile users considering big market and population of the country. Now days customers are mostly focusing on convenience and leisure so many users in India think that handsets are their extension of their self and a cool one stop shop for many personal needs. Especially young people have high aspirations but they can’t satisfy it from banking to entertain. So it is very important to make value preposition by understanding customer’s expectations because service is intangible, perishable, variable and inseparable. Indian cellular phone users expect to get more than from their mobiles then just talk. Let’s see how companies in the country will please their customers and increase their revenue.
Reference: http://www.businessweek.com/
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