Mobility

November 23, 2006
Indians crazy about SMS

NEW DELHI -- The mobile phone has become ubiquitous in recent years having seeped into multiple strata of Indian society. Indeed no other consumer electronics product has gained such market traction and penetration so quickly. According to COAI (Cellular Operators Association of India) there were 78.5 million GSM subscribers and 26.92 CDMA in India June 2006.

Whilst the rest of the world continues to watch the explosive growth of the Indian mobile ‘economy’ (which along with China, is expected to drive global subscriber growth in the coming decade), Indian consumers are adapting to ever more advanced services. From games, music and even TV, the mobile handset is no longer a tool just for managing our social lives and businesses.

But with such a diverse population, just what is the profile of the ‘average Indian mobile consumer’. Using findings taken from its global ‘Mobile Trends Guide’ report, mobile device management company SmartTrust 's Tim Deluca Smith, Communications Manager spoke to Convergence Plus to identify the characteristics that help to make up the average Indian mobile consumer.

Convergence Plus: How addicted is a typical Indian to his phone?

Tim Deluca Smith: These days, a fast paced life has forced the Indian user to rely on SMS, voice and calendar functionalities to keep his life in order. SMS is an integral part of any Indian mobile users life with over 95 percent Indians making use of this service.

The SmartTrust Mobile Trends Survey reveals that men in the age group of 25-34 use the SMS function more than women (80 percent of the respondents). However, on the whole, females are the biggest daily texters with 83 percent of women texting every day as opposed to 65 percent of men. An interesting fact is that children seem to impact the way you use your phone in India. Respondents with no children are the biggest texters - the more children you have the less you text.

CP: On an average, how much money does a teenager spend on his handset?

TDS: The cost of purchasing mobile equipment remains consistent across all age groups with an average investment of approximately Rs. 5,000 for a handset. Typically it’s the older users (35-49) who are the biggest spenders, paying an average of Rs. 8,500. Teenagers follow next, with 58 percent spending between Rs. 3,000 to Rs. 7,500 on a handset.

CP: Which is the 'hottest' application? Are such preferences for applications governing their choice of handsets?

TDS: Outside of SMS (which still contributes approximately over 85 percent of a typical operator’s data revenue), the industry is still searching for the killer data application that will trigger mass market data usage and a much needed hike in ARPU. That said, use of services such as GPRS, MMS, WAP etc., although existent, are less than half as popular as text messaging which stands at almost 100 percent of the audience polled. Since handsets are still mainly being bought for basic functionality (calls and SMS), preference is towards handsets that are low on features and cost anything between the price range of Rs. 3,000-7,500.

Operators have however succeeded in developing and running value added services based on SMS. SIM menus services such as those offered by Bharti Airtel allow access to sports results, news, etc. Such services are based on the delivery of data over the SMS channel.

CP: Have niche applications such as mobile banking and mobile TV picked up? How intensive is the demand for entertainment such as video on mobile?

TDS: Mobile banking is still limited to checking account balances and receiving transaction updates on SMS. Advanced transactional/payment services are not mainstream although a number of trials relating to secure mobile payments are currently live.

India will likely lag behind other markets (Europe/North America/SE Asia) when it comes to mobile TV. Such services require both high-speed networks and advanced feature phones, both of which need to grow in market adoption. Many handsets today offer media player functionality to play locally-held video/music clips (not streamed). However, even these technologies suffer from -10 percent usage.

CP: In a country like India, how will people react to 'bold' applications such as Mobile Gambling and porn? Are content providers/operators prepared to offer such services?

TDS: The Indian consumer is quite conservative. According to the survey, less than two percent of respondents access pornographic content on their handsets – this is largely sharing of content between consumers rather than downloaded content from third party content providers. Even in western markets such as the UK, operators have been careful not to associate themselves with adult content. Such services are largely available from third party content providers, although it is unlikely that this will be a growth market in India

The figure is similar for mobile gambling. As of today no operators offer such services. However, third party providers around the world are cashing-in on the global trend for online gambling/poker and a move into the Indian market is only controlled by governmental policy on gaming

CP: What are people doing with their multimedia devices - listening to music or taking pictures?

TDS: Despite 26 percent of Indians having camera phones, Indians are not regular users. In fact they are amongst the lowest regular users of camera functionality in the world. Music on the mobile is becoming increasingly popular – particularly amongst the younger generation. As per the study, of the respondents that had these capabilities on their mobile device, 29 percent listened to music at least once a week whereas 23 percent took pictures.

Another factor is that in some cases, the mobile phone is also making Indians anti-social! More than half of the consumers who use their handsets to listen to music have done so whilst out with family and friends. Equally amazing is the fact that 21 percent of males who listen on their mobile have done so whilst at work.