Conference on Rural Telecom Markets by Tele.net

1. IMImobile
Promise of Rural VAS

2. Next Wave of Mobile Growth
• Next Wave
It is believed that the next wave of mobile growth will come from the bottom of the
pyramid.
• For a majority of the population in the rural segment, the mobile phone is the first
communication device.
• Going hand-to-hand with telecom operators, MVAS providers are also ready to
explore rural India. Rural should not always be interpreted as poor and therefore
some categories of MVAS might apply directly to them.
• The increasing rural penetration of telecom players is believed to help in increasing
the ARPU of VAS players as well.
• But VAS players have a different opinion. They believe that rural expansion might
not necessarily help in increasing ARPU in the near-term, especially since rural
services will take some time to evolve, and in general, the rural consumers have low
ARPU from an overall telecom spend perspective
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3. Content is King
• Rural VAS is turning out to be a huge opportunity as operators expand in this area.
But innovative and relevant content catering to the needs of the rural masses would
be the key to success for VAS providers. Basically, rural segments have two sets of
needs: needs similar to the urban market, for example infotainment
content, updates on various utilities; and second, needs unique to rural areas, like
rural-focused content, commerce transactions, updates on local activities, etc. And
to expand successfully in rural India, VAS players should develop applications
addressing both these needs.
• M-commerce has considerable potential in rural India. As stated by TRAI in its
consultation paper, mobile-payment will be a great benefit, particularly in rural and
remote areas where there is easy accessibility of mobile phone services, but banks
are not easily accessible. The RBI has also taken some initiatives in this direction.
• MVAS is going to address two main needs of rural consumers-connectivity and
entertainment. Connectivity will provide information VAS. Mobile also has the
potential to evolve as a key entertainment mode considering the lack of other
entertainment options in rural areas. So, by leveraging these two aspects, MVAS can
be a success in rural areas.
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4. Demands of the Segment
• The focus of rural expansion has to be services which enable the rural population to
have access to infotainment content, and updates on local utilities in local
languages. The content has to be delivered in a medium which is easily reachable
and usable. The primary focus for RURAL VAS is on voice applications for now.
• Going rural also means covering geographies where there are few entertainment and
information outlets other than television. This has given a fillip to MVAS. Apart from
having access to entertainment, rural consumers are also willing to spend a little
more on mobile phones, primarily because it is a device that empowers them.
• Rural markets are a different audience. The content served to them needs to be
customized to suit their requirements and preferences. Localized regional content
and utility-based info services have great potential.
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5. What Lies Ahead
•
According to a Gartner report, the total cellular service revenue in India will grow at
a CAGR of 18% from 2008-2012. The mobile subscriber base will increase to over 737
mn connections by 2012. The cellular market penetration is projected to increase
from 19.8% in 2007 to 60.7% in 2012, due to the rapidly proliferating rural
market, low tariffs rates in the Indian market, increasing focus on the rural market
and lower handset prices.
• Success in the rural market is dependent on the interplay of a multitude of complex
factors. On one hand, government policies will probably play the most critical role in
growth of MVAS in rural India. This will affect penetration drivers such as the level of
competition in the sector, tariff and non-tariff barriers for ICT products, and use of
Universal Service Obligations Funds for the development of rural telephony.
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6. Cell Shakti
• Potential Service Reach
– 70% of Indian population living in
rural or semi-urban belts*
• Business Opportunity
– Overcome the infrastructural
deficits in rural India
– Addresses key areas
• Healthcare
• Education
• Agriculture
• Entertainment
• Travel
• Fashion
• IMImobile Strength
– Readily consumable SMS and
Voice-based services geared to
cover wide audience.
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7. Cell Shakti > Empowering Information across all Segments through Mobile
Mandi Bhav
• Allows farmers & traders access prices on a real time over SMS & IVR
• Tie-up with over 3000 commodity markets across India
Education
• A tutor over the phone for children in far flung areas
• SMS based language material – Elementary topics including Maths, Science, etc.
• IVR based counseling Secondary level students
Health
• The STD-code based service provides Health tips for families.
• Informs about health camps being held, medicines & vaccines available in an
area.
Fertilizer & Pesticides
• Educates on soil type, fertilizers to be used for specific areas.
• Provides regular updates on seasonal crop pests & diseases along with remedy.
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8. Cell Shakti > Empowering Information across all Segments through Mobile
Animal Husbandry
• SMS & IVR-based animal rearing & farming
• Informs about animal diseases and symptoms, drugs and feeds.
• Panchayat or Block –level veterinary consultation services
Law & Order
• Enables access to basic legal information with regards to theft,
encroachment, property settlements and enforcement of law.
Weather
• Daily & seasonal forecasts aid farmers with respect to sowing of seeds and
crop harvesting
• Enables preventive actions in event of natural calamity such as floods and
drought.
Gadgets
• Provides information on latest gadgets in the market – mobile, electronic
goods, farming equipment, household accessories and transportation
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9. Cell Shakti > Empowering Information across all Segments through Mobile
Entertainment
• Hindi & Regional movie content distribution over IVR in form of Ringtone or CRBT.
• Movie gossips, snippets and reviews
Travel
• Information on various cities and region within the country & abroad along with
travel advisory for top destinations including Sea Coasts, Hill Stations and Pilgrimage
sites.
• Approximate Fare calculator services
Religion & Astrology
• Religious content such as devotional songs, mantras and sutras.
• Dates & Timings of festivals including Solar and Lunar calendars.
• Almanac information pertaining to auspicious timings for various activities, along
with astrology services
Fashion
• Fashion trends and textile styles
• Lifestyle information
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10. Rural VAS
Thank You
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