Note
I am sorry for this long delay with the posts! The previous post was in mid-Sept. The last couple of months have been really tight – a few travels (personal & official) with increased work at the office! Nevertheless, I assure you – no news has been missed. You get a collection of everything that happened since then here :-) The only glitch being it is going to be a slightly longish post.
[Sincere thanks to those who emailed in / DM-ed to see if all was well]
DEVICES
Hundreds of devices have been launched – I frankly lost track of them. As much as 27 new vendors have come into India in just 1 quarter – the competition is getting really heated up at the low end / feature phone segment. Cellphones assembled in India seem to be selling like hot cakes. Vendors like Spark & Karbonn aims for 7-10% market share. Even if they take only half of that, it is significant. Even television manufacturers like Salora are turning eyes on the Indian handset market. Airfone is another fringe player to emerge. ZTE also comes in, with $20 mobiles! Players like Fly keep launching series of handsets, all dual SIM. Reliance has tied up with Coolpad & Yulong, both Chinese players, to launch phones in India. The Government is also trying to boost local manufacturing of handsets.
Biggies better take note of them and counter them through pricing / advertising! Mind you, these are not ‘Chinese vendors’ that need to be ignored because they do not care for standards/health issues etc and so you cannot compete. These are serious players.
Let us look at what the biggies were doing during our break.
Reliance has launched special Windows Mobile solutions – not seen often in India. HTC Touch 2 has been launched with Reliance mobile. This was probably the first Windows Mobile 6.5 phone in India? Reliance is even trying for ‘hub & spoke” model for mobile distribution in India – first such an initiative it seems. Acer too gets serious about Smartphones – Several Windows Mobile phones are being launched in India. DoCoMo is also expected to launch Windows Mobile phones soon. Guess the mobility team in MS India has been working overtime!
LG has launched a ‘solar phone’ – just as the Samsung one before, this too would work for about 2 minutes after more than an hour under the sun. :). Qualcomm plans to launch its low cost 3G Netbook ‘Kayak’ in India in the second half of next year. It will be priced at about Rs. 10000 (~USD 200). Blackberry goes network independent – service/payment will be through operators only, of course! But Apple, that promised to offer unlocked phones to India has backtracked. ASUS & Garmin have launched a phone with GPS.
While these players are all fighting below, the grand daddy, Nokia, still with 50%+ market share in India was just playing with Diwali offers!
Market share of handset vendors is available here & here. It is only a question of who is second, as far as India is concerned. Samsung it is! If you want to know about the mobile handset brands that you have not heard as yet – look here.
SERVICES/APPS
Nokia has been making a lot of noise about ‘services’ business, particularly in emerging markets. Let us see some news about them here: An analysis on Nokia’s Life Tools is available here – mostly negative – but they have expanded this to Indonesia also now! See here a drilling interview with a Nokia person on their music store! (Aside: Hey Nokia Store people, I am not even able to unsubscribe from your mailing list!). Finally, Nokia’s free messaging service has come to an end. It is not clear if payments through operators has begun. Nokia Tej also seems to be taking off – though not advertised well, I heard they are actually calling up people who registered with them & are offering them demos, special rate plans etc. They have “Affordable Business Solutions Private Limited” as their partner for this. What concerns me about Nokia’s (mostly laudable) initiatives here is – They do not seem to have the support of operators in many of these. What use is it if I can access Nokia Life Tools only from Idea? Should it not be pan-India all operators/all circles?
Time to discuss Mobile Social Networks! A new mobile social network called Cellufun has arrived in India. Reliance has partnered with Moko.Mobi, an Australian firm to develop a mobile social community. Apparently, Airtel already has a relation with them. This is similar to Mig33 and RocheTalk. Unfortunately, none of them have been really as successful in India as they have been elsewhere. The big boss among social networks, Facebook too has India plans. They even conducted a developer meet in Delhi recently. They are trying to get hold of operator support for mobile adoption – there is no denying operator’s power in the country. They launched their SMS Subscription service too (you get an SMS every time there is an update on your favorite FB page) in partnership with SMSGupShup. Meanwhile, TringMe has created an app for Facebook – to make voice calls (VoIP based) from their Facebook page! Looks very interesting, they even offer to mask the call with your mobile number (just as an ID) so that the receive knows that it is from you!
Mobile Banking & Payments are a topic that is being discussed in India for a long long time with not much progress. WATBlog has an article about it here. As rightly said there, without the need to link up to a formal bank account, it just cannot take off in a big way. Operators are big time willing to work with banks to bring out mobile payment services. Vodafone’s chief boss expresses concern that he is not able to offer mobile payments to Indian consumers. Reliance has tied up with Atom. There was even a plea to allow telecom companies to act as banks. However, may be the conservative nature of RBI will save us on this too, just as their conservative nature saved us from the recession! :-) As of today, this is what you can do with your mobile phone in terms of banking! Launch of railway ticket booking over mobile is also delayed because of these regulations. Meanwhile, One more mobile payments company has come up – Beam! Just as Pluggdin argues there, their positioning is really not clear!
Closer to banking is ‘personal finance’ – our next topic. Tarang Software has apparently released a ‘mobile wallet’ application that will aggregate data from banks. I use web-based Yodlee service on my PC/mobile – it is able to get data from all my banks. What is not clear is – who is the partner for Tarang in this. Further, I do not understand how Tarang is distributing this software. A visit to their site does not help. Meanwhile, Nokia has signed a pact with Tanla Solutions to use their mobile payment solutions (and license management solutions)
Google has launched its ‘Search by Voice’ service for Nokia handsets – that is, in the S60 platform. This has been launched specifically for the multilingual Indian market where the voice search platforms are being experimented. Talking about languages & India, here are some more news: Quillpad has launched a transliteration tool for Indian language SMS usage. Looks good but they seem to be wanting to charge users for it. Ahem, only that it may not work. We are not used to paying for such stuff, are we? :) BTW, there has been some standardization effort towards Indian language SMS – but I wonder when there will be a time when all handsets would support this!
Reliance has launched a “personalized call manager” service at Rs. 15 a month – where one can have a voice mail box, pre-recorded messages for specific numbers etc. Looks good, but I may want it for free :) But this is anyways a much better service than this - Aircel has launched a ‘TALK A MAIL’ service – you need to apparently talk to a human, specify the email ID of the recipient and then talk to a machine to record the conversation. Grr. The recipient apparently receives an email as text – so who does the Speech-To-Text here? Some human again? If not, it anyways is going to be all wrong. So they also send a link to listen to the conversation! :) Instead of all these, would you not just call the person and speak to him? Or just type an email yourself. Seriously, who is the target segment for this, boss? Will its usage be worth the time it got installed, got covered in a blog and then commented upon here? Grr!
Some mobile initiatives by the Indian Government come next! IMD (Indian Meteorological Department) has launched a ‘weather information service’ in partnership with HandyGo. This is IVR or GPRS based. There is no information about the number of operators that support this! Since it is over a short-code and available at Re.1 per minute, it is not possible with the support of operators. One hopes services like this and others like Nokia Life Tools, Reuters Market Light etc develop well and all operators support it. After a lot of noise during launch, there is not much news about Nokia Life Tools now. Who said Indian PSUs are slow to respond? After the LPG agencies offering bookings over SMS, Speed Post has offered tracking of parcels over SMS – I am not sure if even private courier agencies have this yet. Another SMS based info service that made news recently is the “gold rates”.
Next we discuss music & video! Comviva (Bharti’s VAS arm) launched voice based song search this October in partnership with Nuance. Airtel has its ‘voice based’ CRBT setting, right? As far as I understand, it was powered by OnMobile and they have their own voice recognition engine (through Telsima acquisition). Why Nuance now? Also, Dhingana has launched a native app for iPhone – apparently the first music streaming app from India. Mobile Content is getting sophisticated – Apalya has video streaming solutions on the technology side while even CPs are getting bigger & better. Star TV plans to have several of its channels available on mobile while Balaji Tele Films plans to actually create specialized content for mobiles. Guruji has launched a ‘ringtone search’ on its site. I read one more news later that this has been a huge success. I wonder if Guruji a big success at all?
It is a season of COMICS now – After Airtel’s move, Tata DoCoMo starts CoMix on the Go. The usual suspects in comics like Amar Chitra Katha are available here too – the pricing seems to be cheaper though! (well, that is kind of expected from DoCoMo)
Mindtree, that recently bought Kyocera’s mobile R&D division in India & announced mobile production as a future area of business has launched a Bluetooth Health Device Solution for Android. From what I understand, Bluetooth has certain “profiles” for connecting to health devices (like profile for connecting to camera, printer etc) and those profiles have been implemented by Mindtree and an application on top of it.
Some tie-up/M&A news next: Rediff, that runs one of India’s premier portal has bought stake in Imere (I am here!), a location based service provider for mobile phones. Reliance has tied up with Babajob for job search on mobile. BIGMaps has been launched on their GSM mobiles. I had huge expectations from BIGMaps – I thought it would give Google & co a run for their money but it is very quiet since launch. And what point offering it only to RCom customers!
Finally some tidbits: Capillary, a mobile solution for retail businesses, has won the Qualcomm’s B-Plan contest. Zook (mobile search engine from India) has expanded wings and gone international. Telibrahma, that excels in indoor advertising (been to Forum Mall in Bangalore?) have started with ‘stadium’ advertising too! They offer scores, statistics etc and of course ads. IBM claims to have developed solutions for operators – social network analysis & customer analysis. Interesting, but are there takers?
OPERATORS
M&A News first!
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Essar was about to buy Warid Telecom of Pakistan, Bangladesh, Congo & Uganda.
‘Pay per second’ has become the de-facto standard now, with the biggies like Airtel & Reliance too joining the bandwagon, once they saw DoCoMo gaining the most market share for 2 consecutive months! However, the telecom minister is not happy even with this and wants local calls at 10 paisa and STD at 25 paisa. We are told that the SMS rates are the next to tumble.
BSNL is re-evaluating its plans to launch full fledged CDMA service in the country. Not being able to really cope up with the private players in terms of subscriber additions, it has another business up its sleeve – renting out the towers - its latest client is Sistema Shyam. Slowly but not really steadily, BSNL & MTNL are inching their way to woo subscribers for the 3G service by expanding their coverage. Several towns in Maharashtra & Tripura have received 3G coverage now. MTNL has even reduced the prices to as low as Rs. 109 for the connection. After being available in several remote locations, 3G is coming to Bangalore finally! :) BSNL (who else at this moment) is starting it in November.
This news is stale for sure :) The Bharti-MTN deal did not materialize for legal issues! This article covers what was lost because of this! An interview with Sunil Mittal about this. Airtel has upgraded SMS 2.0 application – with a quick search feature. In spite of the heavy marketing spend, I do not think Airtel went anywhere with this. Meanwhile, Affle, makers of SMS 2.0 sold a significant portion of their stake to Microsoft. Wonder what they are up to now! SMS 2.0 is available with Idea & Reliance also – I wonder if they too are offering this upgrade or not. Not that it matters :-) Airtel has even tied up with Twitter – exclusively! More benefit to Twitter than Airtel, IMO. However, since Airtel wants to show itself as launching innovative services every now & then, we see mChek, SMS 2.0, Twitter etc. After the initial hype/marketing spend, Airtel does not talk much about it.
Tata DoCoMo, that prided itself with per second & per character billings did a flip flop with their GPRS plans. They launched their plans as “unlimited” with a lot of fanfare but soon enough, backed off and said it was not “unlimited”. Luckily for them, this issue was not blown out big. I am sure other operators heaved a sigh of relief.
Tidbits at the end: Unitech Wireless & Telenor will launch their service as “Uninor”. I am not liking this name :) Services will start by end of this year. In spite of the security concerns expressed about their operations, ZTE is expanding in India – They are setting up an NOC in India.
REGULATION
3G is back in news :) We usually see news about auctions getting postponed. But this time, it is actually advanced!! It was told to be happening in March but has now been brought forward to January by none other than Pranab da, who has become like a head master for the other ministers – austerity drive, forcing to conduct auctions etc :) Once the headmaster (finance minister) rapped the knuckles, the student (department of telecom) did complain about other students (defense department) but after some raids and all, things seem to have been settled. One good news is that if an operator wins a bid but does not roll out services, the spectrum will be taken back. In case of 2G, it was just some penalty and even that would be reduced often.
Anyways some important aspects of 3G now - Foreign firms can also bid (we need money, that is all, to cover the fiscal deficit) in the auctions that will start on January 14 (Pongal day!! Politicians in TN, please raise a concern, after all Raja is the minister). AT&T & Telstra seem very interested. Intel has partnered with HCL & BSNL to play a role in the Wimax game in India. Google too was rumored to have had an interest in the Wimax auctions in India – An interesting read on that here. Back to the details of the auction: There will be a 4 stage auction. Private players in Rajasthan & NE will not get 3G spectrum. BWA (Wimax) & CDMA auctions will happen 2 days after the close of 3G bids. Oh well, though grand plans have been announced, the exact frequency band is not known yet – defense ministry should allot it. For BWA, space organizations have a problem! Good Gods, do you still believe auctions will happen and we will get 3G service ever? Nevertheless, there are estimates that India will have 275 million 3G subscribers by 2013. :)
Security restrictions abound these days! Ban on IMEI less numbers (with a request to ban cloned ones too), banning grey market CDMA phones, snooping of mobile calls – even missed ones, tracking of Wi-Fi users, ban on Internet telephony apart - Indian Government has banned pre-paid mobiles in the state of J&K. ISPs have raised the issue of Net Telephony not being allowed by DoT to the competition panel. Another long dispute is on the cards.
Tidbits time: The telecom minister of India had discussions with mobile operators about rural telephony & usage of USO fund. Some significant announcements can be expected once he meets up with ISPs too. MNP will be implemented as per the plan mentioned here. Let us see if they stick to it! For detailed rules on MNP, see this. Tamil Nadu Government has received 12 crores for m-Government initiatives! No news about the usage of it is known as yet. Provide Samsung-Armani phones to all MLAs, what say? :) A panel from the US has provided quite a few inputs on telecom governance in India that includes allowing 100% FDI & opening up Internet Telephony.
OTHERS
Tata Teleservices have become the fastest growing operator – CDMA & GSM put together. With the kind of pricing policy they have, this should not be really surprising. But, rural India has surpassed Urban India in subscription growth – 48 million added from rural India while only 32 from urban India, in 1H 2009. Here, only the old operators are more active in rural India than the newer ones that have better pricing schemes! Something wrong somewhere! Latest statistics (after September) on mobile subscriptions – here & here. With controversies on the number of subscriptions aside, India has officially declared to have 500 million telecom subscribers as of September 2009. By December 2009, it is expected to have 500 million mobile subscribers alone! It is claimed that one in three people in urban India has more than 1 subscription.
Research time: Opera has released the statistics for mobile web usage from India; A study on the mobile usage pattern in India is available here. Note that this is only for GPRS users! Nevertheless, a good attempt.
Gyaan time: A recent panel discussion on VAS in the Indian market concluded that India is not a very good market for VAS players, given the current climate of relations between operators & CPs. An insightful article on SMS Advertising in India can be seen here! There is going to be an “interconnect charges” regime for SMS now and that will affect all these! Anna University, Chennai has tied up with BSNL to offer a course on mobile telephony to its final year students. Good move, I feel. Similarly, even MBA students can be offered a course on the business aspects of mobile services – after all, several of them might join the industry that is expanding the most.