Mobile handsets shipment boosts by 6.3% (India)

On 10.05.10, In Mobile, By Editor

As per the new market study, shipments of mobile handsets in India raise by 6.3% quarter-on-quarter to touch an all-time high of 38.63 million units in a single quarter.

According to market intelligence and advisory firm, IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2010, September 2010 release, Dual- and Triple-SIM card slot phones have grown to achieve as much as 38.5% of the total Indian Mobile Handset shipments, from less than 1% in 2Q 2009 (April-June 2009 quarter).

According to Naveen Mishra, Lead Telecoms Analyst, IDC India, the Indian mobile market saw a unique trend of multi SIM phones capturing 38.5% of the total market. This could be attributed to several new service providers responding with highly competitive tariff plans to a price sensitive mobile telephony user market.

This flood of new brands caused a gush in overall market and saw emerging vendors corner as much as 33.2% of total India mobile handset shipments in 2Q 2010. Nokia retained its number one spot with a market share of 36.3% in terms of units shipped, Samsung was set at 2nd position, while G’Five, a Chinese vendor emerged at the number 3.

According to Anirban Banerjee, Associate Vice President-Research, IDC India, in the recent quarters several new players successfully launched their own devices at considerably lower Average Selling Values (ASVs) in the price sensitive Indian market.Such handsets found complete acceptance amongst first time buyers, especially from small towns and villages. During the last 6 months (January-June 2010) the top five mobile handset vendors in India were Nokia, Samsung, G’Five, Micromax and Spice.

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Airtel becomes India’s first telco to launch Mobile Banking services

On 09.22.10, In Mobile, By Editor

Sometime back RBI had announced that every single village in India will be banking enabled by 2015 and with reference to the same Airtel not only announced two million more subscribers for the month of August, but also announced that it is the first ever network to get the green signal for mobile banking services from the Reserve Bank of India (RBI).

More significantly, the network announced that the RBI has awarded it a license for a semi closed wallet service over mobile phones. The mobile wallet helps subscribers to load money into an account hosted by Bharti Airtel. That money can then be used to pay for goods either over mobile channels, or using the phone like a pre-loaded debit card. Bharti hasn’t launched any such services yet, but claims it is assessing its options.

What makes it important is that the RBI, which is the central bank of India and holds the leads on monetary policy, has stated that every Indian must have access to mobile banking services by 2015.

Deputy Governer of the RBI, K C Chakrabarty has announced that mobile banks will be available to every Indian village by that time. However, in this case mobile actually does mean mobile the RBI will be sending banks-on-wheels around to each village in turn. The vehicles will offer basic services like deposits and withdrawals.

With a new license granted to Bharti for mobile device based finances, this will prove that mobile phones are more effective than mobile banks for rural India.

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India’s Mobile Market Subscribers to Top 350 Million by 2010, Says The Diffusion Group

On 08.14.06, In Mobile, By Editor

The number of mobile subscribers in India is expected to grow from just over 100 million today to more than 350 million by 2010, an addition of 250 million subscribers in just four years, according to The Diffusion Group. The analysts predict that the evolving mobile markets in China and India will reshape the global telecommunications and technology landscape and realign market share among today’s mobile market leaders.

According to The Diffusion Group, China market is widely heralded as the most immediate and largest market opportunity for mobile vendors. India’s growth rate will be equally explosive. When combined, China and India — what TDG calls “New Asia” — have a population of approximately 2.5 billion people and comprise the single largest opportunity for mobile vendors in the history of mobile telecom.”While India’s mobile market growth will in many ways follow China, the reasons for its growth are very different,” noted Michael Greeson, founder of The Diffusion Group. “India continues to experience a level of poverty far deeper than China and has little in the way of fixed-line infrastructure to support telecommunications. More than half of India’s 700 million rural inhabitants have no access to residential electricity and must rely on community pay phones. It is because of this unique confluence of factors that mobile technologies make so much sense to both India’s government and to operators.”

As Greeson notes, modern mobile telecommunications technology offers developing nations a way to cover expansive ‘greenfield’ territories — in this case, areas bereft of home or personal telecommunications — in a faster and less expensive way than traditional fixed telecom infrastructure. Combined with the world’s lowest per-minute charges, inexpensive handsets, and the social status of mobile phone ownership, India’s mobile operators are preparing to exploit this opportunity.

Other key findings from TDG’s study of India’s mobile markets include the following:

  • Despite 12 years of deregulation, the number of fixed-line telecom subscribers has increased less than 15% in the last three years: from 41.5 million to 47.5 million, most of which has been confined to urban areas.
  • In India, the cost of installing new fixed lines is roughly three times the price of installing a mobile line.
  • As of early 2006, about half of all the towns and villages in India could receive a mobile signal. The Ministry of Communication and Information Technology has set a goal to reach 90% coverage by the end of 2006 – a very ambitious goal, but one that could be within reach given the steps that the Telecom Regulatory Authority of India (TRAI) and the Indian government have taken to enable competition and increase foreign investment.
  • Despite the fact that government taxes on mobile phone revenues are amongst the highest in the world, TDG expects that taxes, levies, and spectrum fees will be reduced to cover only the Universal Service Obligation (USO) fund and administrative costs.
  • Given the rapid pace of growth, upgrading current infrastructure has taken a backseat to network expansion and quality of service in most areas is extremely poor.
  • Total mobile service revenue will increase over 170% from 2006 through 2010, which translates to a compound annual growth rate of 22.1%.

While India offers tremendous opportunity for mobile telecom vendors, exploiting these opportunities requires understanding India’s regulatory and business environment, as well as comprehending India’s unique social and demographic landscape.

About the market research report

TDG’s 65-page report, “India’s Mobile Markets – Analysis & Forecasts” (July 2006) by Thomas Wolf and Kambam Deepak with Michael Greeson, presents an in-depth analysis of the social, political, technological, and market forces that are shaping India’s telecom evolution and pushing mobile subscriptions to record levels. The report provides forecasts for total subscriber demand, an analysis of 3G subscriber growth, market share analysis among India’s mobile operators, and forecasts for mobile ARPU through 2010.

Source- http://www.tekrati.com

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