Today, Mobile Internet has completely changed the way people use their mobile phones. This on the move device along with mobile internet engages people from anything as simple as listening to music, content download, playing games, watching videos, getting live score updates, reading breaking news to as complex & secure transactions such as mobile payments – shopping and banking.

Here are some global statistics for all of us to know, which is acting as the backbone for mobile industry related growth (Source: mobithinking):

1. Over 5.3 billion mobile users worldwide (March 2011 report) – leaders China (879 million) followed by India (790 million).
2. Google’s Android market share was 32.9% in Q4 of 2010, passing the iPhone at 30.6%.
3. Top 5 mobile manufacturer sales in  2011 – Nokia, Samsung, iPhone, LG and RIM.
4. 8.2 billion mobile app downloads in 2010.
5. SMS is still king of mobile messaging with more than 6.1 trillion messages sent in 2010.
6. There are more than 200 million active users (40%) currently accessing Facebook through their mobile devices.
7. Mobile Advertising market is $2.7 billion.
8. Most popular activities on the mobile web are mobile search, reading news and sports information, downloading music and videos, and email and instant messages.
9. The most used mobile apps in the US are games, news, maps, social networking and music.
10. Japanese are still much more advanced in mobile behavior, with 53.3% using apps, compared to 34.4 % in the US and 28.0% in Europe.

Market research experts (IDC, ABI Research, Gartner, Coda Research) are predicting, there will be more to come. Here is what experts have to say:

1. Mobile advertising will rise to $6.6 billion by 2016, average growth of 19.4% each year.
2. Global app downloads will reach 76.9 billion in 2014 and will be worth US $35 billion.
3. Demand for app will peak in 2013 and app stores will slowly decline as subscribers migrate from download apps to mobile Web sites and more popular download apps, such as social networking, are preloaded on mobile devices.
4. By the end of 2011, revenue worldwide from mobile app store downloads could exceed $15 billion, amounting to a 190 percent spike from the $5.2 billion generated last year.
5. Premium content and paid apps will have limited demand.
6. Demand for Video content is on a rise. There will be 74millions mobile internet video users in US alone by 2015, up from 21 million in 2010.
7. The top 10 ways consumers will use mobile in 2012 – Money transfer, location-based services, mobile search, mobile browsing, mobile health monitoring, mobile payment, Near-field-communication services, mobile advertising, mobile instant messaging and mobile music.

What do you think? Will these numbers come true?  Let’s watch out how these numbers contribute to mobile industry growth in the coming years.

- Kavyanidhi Narayan

Methods adopted to attract more users

Operators are working on more attractive packages. Competitive data services packages offered by various Indian telcos such as Airtel, Videocon, Reliance for their GSM subscribers stand at Rs.96- Rs.99 per month with unlimited Internet browsing. Social networking seems to be very popular services used by many today. Keeping this in mind, Airtel also provided free surfing of social networking sites Facebook on the mobile to all their subscribers for two months. The idea was to attract more ‘new users’. Many are also coming up with plans for younger consumers as they play a major role in Mobile Internet consumption.

Role of 3G in Mobile Internet usage

Experts feel, after all Operators in India are 3G network ready, there will be  increase in demand for data services making it beneficial for both operators (increased revenues) as well as the users (faster data rate). Mobile Internet usage seems to be the key to success of 3G in India.

Scope for improvement

According to me, there seem to be, great opportunity for operators to grow in this space, however it depends on the ways in which operators attract the users. Some of the ways to improve are:

• Provide more user friendly browsers (better graphics)
• Reduce the tarrif rates with exciting offers every now and then
• Newer phones to come up with larger screen sizes at low cost
• Uninterupped connectivity with faster speed of data services
• Better marketing campaigns for awareness among Mobile subscribers

We still need to wait and watch how much role will 3G play in attracting more Mobile Internet users.

- Kavyanidhi Narayan

Some of the reasons for the growth are:

• Increasing number of mobile subscribers - Today the number of mobile subscribers has crossed over 500 millon in India
• Low cost of GPRS ready mobile phones - Low end handsets cost as less as 2000rs making it afforable for large numbers of users
• Innovative GPRS subscription packages -  Telecom operators are offering data plans for as low as 98rs/month with unlimited browsing, gaming, music. There are some telcos offering GPRS usage based on daily subscription rates with no hidden cost.The prices are as low as 3rs/day
• Prices falling for smart phones -  Sophisticated phones are priced between 10000 -15,000 rs . Many users are looking at purchasing smart phones for its large screen sizes and easy scroll options.
• Attractive Value added services – mVAS such as email, social networking and entertainment services are driving more users explore these services.

The trend for using handsets for accessing mobile internet is already picking up and is expected to grow ever faster after 3G is launched in all circles in India. Lets wait and see how 3G will contribute to attracting users to use the Mobile Internet.

What do you think? Will 3G play a major role in increasing the Mobile Internet usage?

- Kavyanidhi Narayan

Scope for improvement

There is an old saying that “ where there is a will, there is a way”. Same goes for location based service providers too. India being the second largest mobile market today, has great potential in terms of LBS provided, service providers focus on improving the service as per mobile users’ needs. Here are some thoughts for enhancing the usability of Location Based Services in India:

1. Create Innovative ideas – Work on new ideas based on location such as:
— Expand the list – have a comprehensive database with more places for information seeking such as schools, party halls,shops, commuting distance, time etc if not already available.
—  Generate more relevant applications – develop killer applications based on market segments
— Make it more attractive – Send pictures (based on handset compatibility), phone number details, most popular landmark                

2. Multiple service access channels – Expand your service to be explored through various other channels such as IVRS, SMS, Web, WAP, USSD (as applicable). Example – IVRS can be used by all age group people and by any handset.                                                                 

3. Increase service offerings based on handset compatibility – tweak technology based on handset

4. Continuously update your database – with new information about road digging, road construction,road blocks and with alternate routes

5. User friendly application  – Keep the product/service easy and simple to use

6. Strengthen your sources – Get information from relevant sources such as traffic police, residents, shopkeepers in that area

7. Conduct market research – Get to know your users, what their pain points are, gather their requirements and implement it

8. Accurate and relevant data – Work on delivering exact information requested by user 

9. Expand your sales
— Broaden your boundaries – Focus on attracting more enterprise and not just individuals
— Free trials – Provide services for free to users initially until comfortable
— Enhance sales pitch – Spend awareness by trying to promote the service

9. Reduce the cost – Try to support basic phones as well (SMS based service), nominal user fee and get advertisers and sponsors to pay for the service used by mobile users

10. Personal safety – Provide disclaimer about personal information being kept confidential

There are a lot of challenges that the LBS industry in India is facing and most important of these is availability of accurate Geographic Information System(GIS). At least by working on reducing the cost of the service and providing alternative methods for mobile users for seeking location specific information, service providers are sure to attract more users. After all, with the world’s second largest mobile population, it would not only serve as an excellent information delivery system on the fly, but a potentially huge market as well.

- Kavyanidhi Narayan

Location Based Services, based on GPS (Global Positioning System) technology is an informative service which provides location specific data to mobile users while commuting from one place to another. It makes use of mobile application which helps mobile users locate the destination address.

Service offering:

Location Based Services can be used in a variety of contexts, such as health, work, personal life. Some of the most popular services supported are:

1. Maps and direction – provides turn by turn navigation to any required address.
2. City Sightseeing – provides subscribers with location information of a place such as restaurants, museum, park etc.
3. Mobile Yellow Pages – allows subscribers to get location specific details of their interest such as doctors around that area, car service centers etc.
4. Locating place – malls, hospitals, movie halls, ATMs, banks etc
5. Receiving alerts – location based advertisements (about exhibitions, sale), traffic updates, road. construction, road block etc
6. Resource tracking – fleet management, courier tracking etc
7. Friend Finder – alerts subscribers when one of their friends in their buddy list is in close proximity to their location or vice versa.
8. Chatting – Location based chatting service to be in touch/meet people around that location.

There are many LBS players in India such as Yulop, Onze technologies, Map unity, Imere Technologies, MapmyIndia,Interchain solutions and many more.

- Kavyanidhi Narayan

How does it work?

It is based on SMS technology and mobile user needs to send an SMS to 90088 90088 with ‘current location’ and ‘destination’ as keywords. Directions are sent back to information seeker instantly.

Distinguishing Features

There are some interesting features supported by this service. Such as:

• Displays the exact distance, appropriate auto fares
• Shortest and best route to get to destination
• Landmark information available with exact turning details (right, left)
• Automatic language correction – Gives accurate address even if there is an typo in destination name
• Tag your business – Shows your business on someone’s map if you wish to
• Feedback options available

Benefits of Short Map Service

• Provides you with exact directions
• Cost effective – pay only the SMS charge
• Supports any mobile phone
• Continous update of information in database – souces: traffic police, BBMP, media and local population

Currently the services are for Bangalore and Chennai within India, it is expected to cover other cities in India sometime soon. In a developing country such as ours where commuters rely on pedestrians for directions, this service sure has a bright future. It not only eliminates the difficulties for commuters to stop and ask people around for directions, but provides mobility and is not expensive too.

What do you think about this service?

- Kavyanidhi Narayan

To actually notice if this change will make a lot of difference to consumers and other service providers, we will need to wait and watch after its implemented by all operators in India.

What do you think?

- Kavyanidhi Narayan

What is mobile marketing?

Mobile Marketing is any sponsored infotainment or entertainment service that the mobile subscriber receives for free and the content/service is paid by advertiser. In traditional sense, it is a method by which advertisers  promote their service/product through mobile technology, mainly through cell phones.

What are the various methods of Mobile marketing?

Advertisers reach the end-users (mobile users) through various channels based on channel availability and handset compatibility. Some of them are:

• Via SMS - Advertisment message of few characters is sent to end-user along with regular text message (Text message + ad = 160 characters)
• Via USSD - Relevant ads are broadcasted to subscribers based on their interest and location
• Via Mobile games – Promotional messages are delivered along with mobile games during mobile games download or while playing games online
• Dial through IVR – Advertisment clip is played just before mobile user browses through the voice portal for CRBT, infortainment subscriptions or content download
• Mobile web marketing – Advertisments are displayed on WAP portals in the form of web/wap banners on sites which are most popular among subscribers
• Location Based Services – Mobile user receive advrtisment clips at the right time, as per mobile user interest and based on their present location
• Via Bluetooth – Transfer advertisments between cell phones but more popular in the western world than in India

What are the benefits of Mobile marketing?

For mobile users

Many of the users think it is good to have this service specially because:

• Phone calls/ games are sponsored by advertisers
• Many a times ads are informative
• Easy and free method of receiving relevant information

For Promoters

• Good source of revenue generation for advertisers and service providers
• Easy method for promoters to reach their potential customers

What is its potential in India?

Popularity of Mobile marketing in India is growing every day. India having over 400 million mobile subscribers, seems to be having good potential provided the ads are delivered for free, say industry experts. Based on reports and analysis, it is observed that there are more takers if the ads are free and very few are interested in paid services. So for promoters, a good business model is in which they do not charge their viewers for ads. Look at what others in this Industry have to say:

http://www.telenity.com/telescope/09-01/lbs-based-mobile-marketing.php

Many companies such as OnMobile, Telenity,Velti , Activemedia technologies (bought by 2ergo), ACL wireless etc are focusing in this space. What do you think is the potential of mobile marketing in India?. Do you think there is agood chance for it to grow?

- Kavyanidhi Narayan

Gaming developers and companies are also taking lot of interest in implementing new games specially designed based on women’s choice. For example: Zapak has come up with a portal exclusive for women called zapakgirls.com. Exclusive women games are make over, cooking, fashion, dress up, celebrity and doll games. Some gaming companies are suprised to see that women are also getting attracted to games related to cricket.

Based on a report of game downloads, it has been observed that women usually take up games which is easy to understand and requires minimal instructions. Also by reducing the prices of the games should get more women gamers try out new ones.

So lets wait to see what the ratio of gamers will be in near future and how fast women will catch up with men in playing mobile, PC and Internet games.

- Kavyanidhi Narayan

Telecom companies are making conscious effort to come up with new products and services to attract the rural mobile users, specially by coming with beneficial and educational programs for farmers on agricultural information. Teaching them to use cell phones, sending SMS and attracting them to subscribe to services which will be benefical for their crop growth. This is achieved by providing information such as best price rates to set, weather updates, fertilizers to use, right season to grow crops etc. Telcos have been observing recently that they have started getting more than half of their monthly increase in mobile subscriber base from rural and semi-urban parts of India.  Vodafone, Reliance communication, Idea cellular has seen 50% of their new subscribers are rural areas  (Percentage – Source Business standard)

This potential to which telecom companies thought about 3 yrs ago is paying off now. Nokia the leading mobile phone manufacturing company with its low priced mobile phones is also experincing increase in handset sales, specially by rural users.

Industry experts say, even thought immediate benefits are low, rural markets are profitable in the long run.

- Kavyanidhi Narayan