Expert View

February 18, 2004
Mobile Internet will likely take off in India by 2005

Geetanjali Wadhwa & Pradeep Chakraborty

NOIDA -- In addition to offering new services for today's mobile user, operators are continuously trying to enhance the quality of their basic services. They are focussing on better customer care services, network expansion, network improvement, faster and easier roaming services, engaging mobile Internet services, increase in dealership, etc. Fast technological evolvements have allowed operators to focus on marketing "essential values" to the technology-savvy consumers by offering the hottest mobile services to address their entertainment and social needs. Convergence Plus met up with Tarun Singhal, managing director, AIRCOM, India & SAARC, to discuss more about the subscriber management tactics being used by the operator to compete. Excerpts from the interview:

Convergence Plus: What all services are being deployed by various mobile operators?

Tarun Singhal: Gone are the days when operators used to focus on highly segmented groups. Fast technological evolvements have allowed operators to focus on marketing "essential values" to the technology-savvy consumers by offering the hottest mobile services to address their entertainment and social needs. Most of the mobile operators are offering variety of value-added services that improve the way they communicate and offer a medium of self-expression. The young generation, for instance, has shown great affinity to new ringtones, picture messages, SMS chat and dating, etc. Mobile Telephony has come of age and is not only a means of exchanging voice and data but also a medium of personalised entertainment & instant interaction.

CP: What churn and subscriber management tactics are being used by the operator to compete?

TS: In addition to offering new services for today's mobile user, it is becoming more important for the operators to enhance the quality of their basic services. Operators are focussing on better customer care services, network expansion, network improvement, faster and easier roaming services, engaging mobile Internet services, increase in dealership, etc.

Operators have long focused on marketing their offerings to highly segmented groups, although the success of campaigns to lure and keep customers is still up for debate. However, recent research reports confirm that operators have to master the marketing aspects of winning new users, as well as offer the right services to the right groups. At the end of the day, the customer wants quality service and seamless connectivity. Operators, who are more empathic to the subscribers and can adjust their offerings accordingly, will benefit.

CP: What services are bringing the most revenue to operators? What interoperability issues need to be resolved?

TS: Increase in competition in the industry has led to a sharp fall in tariffs. The operators are trying to establish newer revenue streams and continuously experimenting.

Substantial part of the revenue would come from SMS and inter-connect charges. Roaming also contributes a large chunk to the revenues. Increasing subscriber base also calls for the better infrastructure. India is already the world's second-fastest growing telecom market. Now the thrust is on quality and reliability. Since the whole edifice is dependent on end-user or customer satisfaction, operators should focus on resolving issues such as billing, better infrastructure access, etc.

CP: What strategies are mobile operators using to fight WLL and what is/isn't working?

TS: Mobile operators have adopted various strategies such as improved customer care services, network expansion, tariff restructuring, promoting roaming -- domestic and international. I believe that more than individual strategies, it is the overall quality of services that will be the deciding factor in this tug of war between mobile and WLL operators.

CP: How do you foresee mobile data services taking off in the country?

TS: Indian consumers are technology savvy. Once the benefits of a particular technology are evident, it is adopted as a standard by the masses. The growing popularity of the mobile telephony is a classic case in example. I see it happening in the case of mobile data services as well.

We might have to wait for a while before we witness exponential growth in the segment. However, with GPRS and edge technologies coming into the picture, the services will grow beyond the basic utilities such as SMS, voice mail and online gaming, video screening, etc. will become a rage.

CP: When and how do you forsee mobile Internet taking off in this country?

TS: I believe that mobile Internet will take off in India by 2005, when GPRS is fully deployed and the speed of data transfers will actually increase multifolds from current technologies like CDMA. It is the natural and logical progression in the evolution of technologies where the latest superior technology will take over from the currently more popular but outdated technology. The change will bring in its wake a number of added benefits, one of which will be mobile Internet.