India to become world’s second largest mobile broadband market (India)
The GSMA has announced that India will become the second largest Mobile Broadband market globally within the next four years with 367 million Mobile Broadband connections by 2016. In doing so, India will overtake the US, which will account for 337 million Mobile Broadband connections by 2016, but will still be second to China, which will have reached 639 million Mobile Broadband connections in the same period.
Since 3G licenses were first awarded to mobile operators in India in September 2010, Mobile Broadband connectivity has grown steadily. There are now more than 10 million HSPA connections across the country, and this is expected to grow exponentially, by 900 per cent, to more than 100 million connections in 2014. This will make India the largest HSPA market worldwide within the next two years, surpassing China, Japan and the US in the process.
According to a company report Anne Bouverot, director general of the GSMA, said that the mobile industry in India is set for immense growth as Mobile Broadband technologies such as HSPA and LTE start to proliferate, but there is scope for far greater development. Further, to take full advantage of this, the Indian government should facilitate the timely release of additional spectrum in a fair and transparent way for all stakeholders. The benefits are clear to see – a 10 per cent increase in Mobile Broadband penetration could contribute as much as US$80 billion of revenue across the country’s transport, healthcare and education sectors by 2015.
As per a GSMA study, despite a large rural population, mobile growth in India is being largely driven by more affluent communities in cities. Net additions in urban areas reached 85 million last year compared to 57 million in rural areas, with mobile penetration increasing by 20 percentage points in urban areas to 161 per cent, against a 6.5 percentage point rise in rural areas to 36.6 per cent.
The provision of Mobile Broadband in rural and remote areas will help India bridge the so-called ‘digital divide’. It will improve productivity, help overcome the constraints of transport infrastructure and provide much needed services such as banking, health and education. Given the significant social and economic benefits, expanding affordable access to Mobile Broadband should be a high priority of the Indian government.
The study reveals that with an average retail price of US$500, the cost of an LTE smartphone is four times the average monthly GDP per capita in India, and at an average of US$200, the retail price of an LTE USB dongle is twice an Indian’s monthly income on average. As LTE networks proliferate worldwide and more devices become available, costs will come down. Initiatives like the introduction of the low cost Aakash tablet in India are helping spur widespread access to the Internet in emerging markets, but more can be done.
Bouverot also said that it is important that all citizens in India have access to high-speed Internet connectivity and the transformative opportunities it provides. The current average cost of an LTE device is prohibitive for the uptake of Mobile Broadband for those on low incomes. The GSMA is committed to working with its mobile operator members to investigate innovative ways in which to make access to the mobile Internet more affordable for all.
RURA pushes back MNP until 2012 (Rwanda)
The Rwanda Utilities Regulatory Agency (RURA) has reportedly postponed the introduction of mobile number portability (MNP) from this year to 2012.
According to RURA’s Director General, Regis Gatarayiha, the service, which allows subscribers to retain their phone number when they switch service provider, has been delayed to allow the country’s three mobile operators to fully establish themselves in the market. They have decided to postpone the introduction of the service to 2012 because the market is not yet ready for it; the company also wants the market to have a 60% mobile penetration.
Regis added that the bigger advantage for a subscriber comes in the form of better network connectivity with competitive tariff plans. Only those service providers who will deliver on these two fronts will retain a customer.
Africa has great potential among all emerging markets: Bharti CEO
www.WirelessFederation.com/news: While explaining the rationale for buying Zain, Africa was described as a potential emerging market by Sunil Bharti Mittal, founder Chairman and Group CEO, Bharti Enterprises.
The need of globalisation for Bharti has also been explained by him as Indian operations were generating free cash flows. While defending his decision to enter into talks with the Kuwait telecom major, he made it clear that competitive intensity is low for Zain in most countries and the valuations offered are fair and reasonable.
According to Bharti officials, Africa had good growth opportunities among emerging markets, given its high population, lower mobile penetration and relatively less competition and the tariffs too, in Africa are more than 10 times India.
Vimpelcom building a solid South East Asian Cluster – Boris Nemsic, CEO Vimpelcom.
VimpelCom will pay about $66 million for Millicom’s 78 percent stake in Millicom Lao Co. Ltd. The remaining 22% of Millicom Lao Co., Ltd. is owned by the Government of the Lao PDR.
VimpelCom’s CEO Boris Nemsic describes the deal as, “the next logical step in our international expansion strategy” and one that “fits perfectly into our strategy of building a solid Southeast Asian cluster.”
VimpelCom already has mobile operations in Vietnam and Cambodia, having launched services in both markets in July 2008. It holds a 40 percent stake in a JV established with state-owned GTEL in Vietnam. In Cambodia, it owns 90 percent of Sotelco.
Laos has a population of 6.5 million people and low mobile penetration estimated at around 23%, thus making it attractive for Vimpelcom and an obvious choice for acquisition.
A mobile revolution in rural India
The total mobile penetration may have reached 14 per cent of India’s population. However, industry experts assert 13 per cent of this is in urban centres and only one per cent in villages.
The opportunity is not lost on market players like Bharat Sanchar Nigam Limited and Reliance Communications who have been present in this segment for a while.
Now Hutchison Telecom, Bharti Airtel and Tata Teleservices too have descended on the turf with big network expansion plans and innovative marketing strategies specially tailored for these regions.
“The B and C category census towns are raking in good business for us. Currently, almost 35 per cent of our business comes from these circles. However, the potential here is immense as only a per cent of the total population actually use mobile phones,” says a spokesperson for Tata Teleservices.
TTS, operating in 20 of the existing 23 mobile telephony circles in India, is using a door-to-door marketing strategy, involving members of gram panchayats and trained market-feelers to make residents of villages and small towns aware of the usefulness of mobile telephony and how the system of pre-paid refills work.
According to the company spokesperson, value-for-money handsets priced between Rs 1,000 and Rs 1,400 with a plethora of tariff plans to choose from is what is driving subscription growth in these regions.
Sanjay Kapoor, joint president, mobility, Bharti Airtel, agrees with the trend and says his company had enjoyed a growth of 166 per cent in June of 2005-06 in circle C towns, as compared to a growth of 65 per cent in metros.
“We are concentrating on improving network connectivity in the rural areas along with existing circles we and are spending $1.5 billion this year for that purpose only,” says Kapoor. Airtel is appointing distributors at the tehsil level and using existing channels of fast moving consumer goods in these areas to push their products.
Reliance Communications will also make investments to the tune of Rs 1,500 crore (Rs 15 billion) till March 2007 to enhance its network in the eight global system for mobile communication circles it operates in.
The company plans to extend its GSM network to 4,000 towns in the existing circles of Bihar, Orissa, West Bengal, Himachal Pradesh, Assam, north east, Madhya Pradesh and Kolkata. Currently, its GSM network covers 340 towns in these circles.
A company spokesperson says the company has added over 200,000 subscribers in its eight Category C circles in the previous quarter alone. Reliance is importing handsets in bulk for use in these markets and is trying to leverage its low tariff plans to increase subscriber vase.
Handset manufacturers too are gearing up. Devinder Kishore, director of marketing at Nokia India, notes that handsets priced between Rs 10,000 and Rs 15,000 are reasonably popular in these regions.
“While the handset market in India is growing at an approximate rate of 75 per cent annually, about 30 per cent of the demand comes from metros now. The rural market, therefore is growing rapidly in terms of sales and it has a tremendous potential in future,” he says.
Nokia is using channels with territorial reach like Doordarshan and All India Radio to reach the interiors. The company has also incorporated nine Indian languages on certain handsets to promote sales.
Says Dinesh Sharma, marketing and sales head of Samsung CDMA, “Sales in category C towns are growing at a rapid pace. Currently the fasted growing circles for us are the categories A and B. Sales in metros have been slower, although absolute numbers are growing as almost a per cent of urban populace buy a phone every month”.
Sharma feels that for rural areas, incorporating local languages in handsets will become a focus area in future, as will be voice short messaging service, the latter dependent on service providers.
“Rural India is keen on high feature phones but not as much as urban India. A customer in the rural area is happy to have features, which are available in the urban markets. They are happy to have colour handsets, other accessories like phone book wherein he can store details of contacts, games, alarm tones and so on,” explains H S Bhatia, National Product Group Head- GSM Division, LG Electronics India.
Industry experts feel an estimated investment of around $6.5 billion would be needed to increase India’s rural tele-density to four per cent from the current one. With the current investments, the expectation may not be far off the mark.
Source- http://inhome.rediff.com
Technorati : BSNL, Bharti Airtel, Hutchison Telecom, India, Reliance Communication
Ice Rocket : BSNL, Bharti Airtel, Hutchison Telecom, India, Reliance Communication
