Majority of the Indian Consumers still Prefer Buying a Low Cost Handset

lots-of-mobilesMajority of the Indian Consumers still Prefer Buying a Low Cost Mobile Handset. This is what revealed by a survey conducted by MediaTek India, a semiconductor company.  The survey was carried out over a sample size of 1000 people in Metros and about 300 shopkeepers. It consisted of a mixed group of people belonging to the middle and low income groups including young people and students. About 50% of the users interviewed still tend to buy a handset in the Rs.1500 – Rs. 2000 range with basic functionalities. This is similar to an earlier survey carried out by MediaTek in rural India, where 55% of the rural users too buy a low cost phone based on the recommendations of peers, friends, family etc.

However, some of the usage habits of users living in metro cities are changing, and this is in sharp contrast to people living in villages and other rural areas. While a rural person would prefer having a phone with a longer battery life, thanks to longer power cuts, one living in an urban setup or in a metro city would want a better looking phone which is high on features.

Study says that the margin with global brands is the lowest and it also remains the most demanded with the metro consumers. With the Indian brands it’s a 50 – 50 split between higher margins and higher demand with consumers. Non-branded phones, although are the most profitable to sell for shopkeepers, aren’t really popular with metro consumers since there are no after sales services and durability is an issue too.

Many of the users surveyed bought their handsets based on the recommendation of a friend or someone known to them or based on self knowledge and research. Also about 21% of them would go with a handset which has a higher warranty period. If users are satisfied with their handset and the services provided they would wholeheartedly recommend it to the people known. 70% of them would even buy the same brand again, if satisfied.

The study also reveals that a large number of urban users prefer a global brand over an Indian or a locally manufactured brand. Also 42% of them would prefer to buy a brand new handset rather than going with a used model.

According to Mr. Arun Gupta, Director-Business Development, MediaTek India Technology,
"The study was aimed at identifying the latest trends in mobile buying and how does the consumer have a say in such changes. Consumers are increasingly being aware of the latest models in the market and demand for more features and better looking handsets at a relatively lesser price. Usage patterns of a metro user are very different from that of a person living in a village. They are less likely to compromise on looks or functionality for price.”

India to have 60 million 3G subscribers by 2013?

3G-technologyIndia has one of the fastest growing telecom sector in the world. Reduction in tariff, low cost handset, value-added services and initiatives taken by the government are some of the main factors fueling growth in the Indian telecom market. The uptrend in growth is expected to continue in near future owing to the lower teledensity which currently hovers at around 40-45%. Low teledensity encourages telecom operators to spread their services in untapped areas which will help in raising the number of mobile subscribers.

According to Rncos' research the number of 3G subscribers in the country will grow from 2010 to 2013 to around 60 Million. There is a wide gap between the teldensity levels in the urban and rural areas. Rncos carried out research and analysis of the present and future trends in the Indian 3G market and has come to a conclusion that the deployment of 3G services nationwide will play a vital role in bridging this huge gap.

At present, only two Operators BSNL and MTNL are providing 3G services. What do you think, can India have 60 million 3G subscribers by 2013?

Which Indian telecom brand has made the most out of new media?

telecom-social-mediaWhen the entire world got rolled under recession last year, India gave surprises to others with a strong domestic back up. The main relief for advertising agencies (atleast for those who have a telecom account) is that they are guaranteed with a continuous business! India, as the whole world knows, is the gold mine for telecom companies. No one dares to ignore a market that generates 10 million new subscribers every month!

On the other side the evolution of new media and changing media habits of consumers has made it very tough for telecom brands to make the user see value in their offering. Though every telecom brand spends anywhere between Rs. 150 crore and Rs. 400 crore there are lots of buzz about the telecom brands, new offers, promotions etc. But only very few telecom brands made smart investment in new media to make the most out of it!

Without any doubt Tata DoCoMo is the clear winner. It’s a great job done by both the marketing team and their ad agency Interface.co.in. TATA DoCoMo turned the market upside down with per second billing, great brand tone, clever ads, (don’t forget that NTT DoCoMo is a pioneer in advanced technology). But what made the real differentiation is their involvement in social media like Twitter, Facebook, Orkut etc. They did marketing WITH the consumers and not TO them. They involved users to participate in the brand building and executed one of the smartest crowdsourcing campaign ever done in India. They used both twitter and facebook in a smart way with innovative ideas like ‘dietalk’, ‘animation contest’ etc.

How can I miss ZooZoos! Personally zoozoos is one of the finest creative product ever produced in Indian advertising! The way the zoo zoos occupied the life of customers is tremendous. Every one loves zoozoos. Every one on facebook has experienced the best of brand engagement by any Indian brands. Ideas like “See the ad first on facebook”, “Contests” has made inroads in consumers minds. I won a zoozoo t-shirt too ad I was extremely proud to spread the news. This is what the new age marketing all about. If the content is great, consumers will become a media and take care of the marketing for the brand!

Idea has executed few of innovative marketing for ‘use mobile save paper’ campaign by partnering with barista/CCD an delivering the menu to users mobile! This campaign was very well thought and aligned with the brand thought. But idea is a brand that should take full use of social media and not just stick to the online banners! Idea should INVOLVE users with the brand since they have a powerful brad DNA that can open more possibilities when they embrace new media.

Airtel, is always a trusted brand by millions. In fact I strongly believe that they don’t even want to create campaigns on new media. They have a better network, great service etc. I suggest Airtel to take their customer service to forums like Twitter/Facebook etc, which will logically reduce their cost and increase the trust the consumers have in Airtel

Aircel did some great initiative with ‘save the tigers’ campaign. But they just informed us about the numbers and wanted to join facebook groups. They never tried to provide us some directions on what has to be done and what role should a normal Indian play to save the tigers! But they got great brand recall with the initiative. I’m sure that folks in Aircel and Dentsu, their creative agency will come up a great follow up campaign that will spice up the new media.

With regard to other telecom brands, I’m very disappointed with their new media initiatives. In fact I had huge expectations from Uninor which has over Rs. 400 crore to spend, to make smart investments in new media rather than just a online banners.

Every thing said and done, I believe 2010 will provide these telecom brands to re-invent their marketing, media planning strategy.

Who are the winners?

Without doubt Tata DoCoMo and Vodafone are the winners when it comes to best usage of the new media. Other brands still have opportunities to make really interesting connect with the consumers. After all, consumers haven’t changed, but the way they consume media has!

India's 3G Auctions: Why mobile operators still look uncertain?

3g-whenIndian telecom companies were excited with the announcement of 3G auctions for high-speed mobile service. But now with the delay in auction for four times in a row, mobile operators are uncertain about the start of 3G services in the world’s largest wireless market by users after China.

The Indian government still expects to accumulate a total of USD 5.5 billion for four national and 22 regional licences, despite a weak growth in profit and falling stock prices due to a price war that has driven calling rates to well under 1 cent per minute. Carriers will need cash to bid on spectrum, and building a nationwide network will cost each as much as $4 billion. So far, the start of 3G has not been fruitful. State-owned operator BSNL, which the government allowed to launch 3G a year ago, currently offers service in 300 cities, has cut tariffs at least twice, and has just 700,000 customers. The company’s record doesn't seem to encourage competitors.

The auctions may lead to consolidation and greater overseas control of India's mobile business. The top three operators hold just over half the market, while a number of smaller players pmgtle for the rest and foreigners are keen to enter this market. Japan's DoCoMo offered $2.7 billion for 26% of telecommunication operator Tata Teleservices, and Russia's MTS purchased 74% of Shyam TeleServices in 2008. Norway's Telenor looked to buy another small player in 2009.

Most Indians look satisfied to use phones for just voice calls and SMS. Only 40,000 or so iPhone’s are being used in the country, and smartphones make up well under 5% of the handset market. Mumbaikars using handsets with built-in FM radio seem very contended for listening to music on the go and wonder how would internet enhance their mobile features. With few Indians using mobile Internet, carriers are suspicious over spending billions on network gear and licences.

Do you think that the launch of 3G services will give a major push to the telecommunication industry? Do post your comment if you are already using phones with access to 3G.

3G and its Benefits

3G-technology3G is making lots of buzz these days. Recently I published an article related to BSNL's 3G coverage. I got a mail on the the day on which I published above article, asking me what exactly 3G is? So, here is the answer.

According to wikipedia - 3G is a family of standards for mobile telecommunications defined by the International Telecommunication Union,  which includes GSM EDGE, UMTS, and CDMA2000  as well as DECT and WiMAX. Services include wide-area wireless voice telephone, video calls, and wireless data, all in a mobile environment. 3G allows simultaneous use of speech and data services and higher data rates (up to 14.0 Mbit/s on the downlink and 5.8 Mbit/s on the uplink with HSPA+). Thus, 3G networks enable network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency.

Benefits of 3G :

High Quality Voice Service
The quality of voice falls under 3G will be much higher compared to 2G services.  

Enhanced content services
3G users can download full music files, full movie files and other files at high speed.

Mobile Broadband
3G User can use his handset for high speed Internet any time anywhere (where connectivity is available :P)

Video Services
3G user can enjoy the video call facility wherein both the caller and receiver will be able to see each other while speaking if both have 3G services and 3G enabled handsets.  3G enables its users to send Video mails and , Video clips.

Mobile TV
3G users can watch TV programmes of different video channels as per his liking while on the move.

Do you still want Unlimted GPRS Packs from TATA DOCOMO ?

tata-docomo-aircel-gprs-warTata DOCOMO recently launched 5 new ‘GPRS on Demand’ Packs. These GPRS packs are available at Rs. 5, Rs. 15, Rs. 33, Rs. 48 and Rs. 98. It seems that with 5 new ‘GPRS on Demand’ Packs TATA DOCOMO is all set to take on Aircel in GPRS tariff battle. But are TATA DOCOMO plans are really capable of giving a tough time to Aircel's GPRS Plans? Do you still want TATA DOCOMO to come up with Unlimited GPRS Packs?

In this post I will be mentioning what are the advantage as well as disadvantages of GPRS Packs of TATA DOCOMO and Aircel. I have prepared a table to compare TATA DOCOMO and Aircel GPRS Packs. Go through it and then read the rest of the Article.

TATA DOCOMO
Aircel
PACK Day free (7am to 11pm) Night free usage
(11pm to 7am)
Validity Days Post Free usage with validity left PACK Validity Days Usage
95 200 MB 4 GB 30 50p/1MB 98 30 Unlimited
48 100 MB 2 GB 30 50p/1MB
33 50 MB 1 GB 15 50p/1MB
15 30 MB 500 MB 3 50p/1MB 14 3 Unlimited
5
10 MB
12 Mid Night 50p/1MB

Before trying to make my point let me tell you that I have neither used TATA DOCOMO nor Aircel as both the operators are at present not available in my state.

  1. Speed : I have read in many forums where people complain about Aircel GPRS speed but let me also tell you that I have read similar views about TATA DOCOMO also. One of our team members, Mihir, who himself uses Aircel GPRS said me that Aircel is good enough he easily streams youtube videos with it however sometimes he faces speed problems but he do not mind it as it happens rarely and apart from that its always fun to use unlimited GPRS. Mihir has also used GPRS of TATA DOCOMO and said that speed is good with TATA DOCOMO.
  2. Usage : Some of you might use GPRS for just surfing the wap-sites and some you might use it for downloading and surfing both. TATA DOCOMO GPRS packs are good for surfers who download very less or nothing during day time. However four GPRS Packs of TATA DOCOMO  - Rs. 15, Rs. 33, Rs. 48 and Rs. 95 provide download of 500 MB, 1 GB, 2 GB and 4 GB respectively between 11 PM to 7 AM. Aircel on the other hand provides unlimited usage so the size of your downloads and surfing hardly matters.
Do Share your views about TATA DOCOMO and Aircel GPRS. Do you want TATA DOCOMO to launch Unlimited GPRS Packs again?

WiMAX technology : What can it do for us?

wimax_logoIndia stands in the second position in maximum usage of mobile phone, with 550 million consumers streaming in the country. The teledensity in the country is growing at a fast rate with 97% of the urban population lifeline is with the mobile phone, whereas only 18% of rural population is accessible. With the rise of wireless phones, the wire line sector is facing a drop, and is left with 37.5 million consumers.  

After the success of 2G technology, the 3G in India is a big boon, not only in this particular telecom sector but also in the overall economy. To further add experience to mobile services, WiMAX services are coming up with mobile broadband service not only for mobile users in the urban areas, but it has features to uplift the rural sector.  

Before I share what WiMAX can do for us, here is a brief description of WiMAX : WiMAX mean Worldwide Interoperability for Microwave Access. It is a telecommunications technology that provides wireless transmission of data using a variety of transmission modes, from point-to-multipoint links to portable and fully mobile internet access. The technology provides up to 10 Mbit/s broadband speed without the need for cables. The technology is based on the IEEE 802.16 standard (also called Broadband Wireless Access). The name "WiMAX" was created by the WiMAX Forum, which was formed in June 2001 to promote conformity and interoperability of the standard. The forum describes WiMAX as "a standards-based technology enabling the delivery of last mile wireless broadband access as an alternative to cable and DSL".

The bandwidth and range of WiMAX make it suitable for the following potential applications:
  • Connecting Wi-Fi hotspots to the Internet.
  • Providing a wireless alternative to cable and DSL for "last mile" broadband access.
  • Providing data and telecommunications services.
  • Providing a source of Internet connectivity as part of a business continuity plan. That is, if a business has both a fixed and a wireless Internet connection, especially from unrelated providers, they are unlikely to be affected by the same service outage.
  • Providing portable connectivity.
Apart from enhancing mobile phone capabilities, the WiMAX technology can be used in both urban and rural sectors, enhancing mobile services for betterment.  The advantages in urban sector include a broad range of converged services, from one/single IP station to numerous connections. The features experienced with the broadband service are Voice over Internet Protocol (VoIp), video telephony, multimedia messaging and conferencing, location and telematic services. Extending the services to the rural sector, new applications such as telemedicine, distance education, issuing birth certificates, keeping land records, initiation of ATM’s and railway reservation center.  

Also, the rural sector finds a boon with applications on health system, money transfer, reservation and booking of railways, issuing of birth certificates, voters card, ration card, registration of vehicles, Village Panchayats, education, and many more. Implementing these applications not only brings mobility in the rural areas but also brings in new hope to improvise lifestyle, learn new technologies and get along with the passing time.   

Mr. Arun Gupta, Director-Business Development MediaTek said "WiMAX technology in India is coming up with great prospects, especially in the rural sector. Applications such as telemedicine, e-learning or distance learning, implementation of security and disaster management helps in the health, education and disaster management, boosting the growth of Indian economy. The applications in WiMAX can be accessed from anywhere as it is a broadband mobile service, increasing the connectivity spectrum, when compared to the limited access of 3G technologies."   

In India, it is expected that the Mobile WiMAX technology will be a respected process of broadband service, which will be implemented first at “hot zones”. The term hot zones, defines: limited densely populated areas where the transaction and process will be checked in terms of usage and accessibility. A similar piloting has already been carried out at Ajmer, resulting with green signal. This process would take care of the accessibility, transport convenience and cost savings through wireless connection. The only question that stands up in everyone’s mind is the “security”.

The deployments of network servers will be gaining momentum once a successful implementation and auction and its terms and condition are freeze. Thus it is expected to rise by 2011.
.
Inputs provided by MediaTek Inc. MediaTek Inc is a fabless semiconductor company for wireless communications and digital media solutions. They are holders of several patented power saving designs, making them an attractive option for end consumers.With the expansion of WiMAX technology across the globe, company is launching WiMAX technology incorporated mobile handsets (MT7118,MT7110, MT7119) with power saving solution.  As a result of their specialization in this field, they have the expertise to share in the technology spectrum with insights into the current WiMax/3G/telecom market. They have wide opinions on the upcoming trends within the country, analysis of the WiMax trends globally, implications on lifestyle of Indians, and more.

My search for a good GPS app ended on Google Latitude

GPS-appHi folks I am Udayan a regular MobiGyaan.com reader. I wanted to share my experience with various GPS Apps with MobiGyaan Readers so I contacted Puneet and he agreed. So here is my first Article on MobiGyaan - Need some encouragement from you guys so please post your comments Smile

The urge to explore location based applications or GPS applications started last year when I bought a Nokia E-71 (mainly, for its looks).From then, I m a big E-71 fan. It is the best phone I have ever used till date ( Past includes low end Nokia, Samsung, Classic, Micromax  and LG phones to high end phones like Nokia N 91,E 71,E 63,BB etc. Thanks to my friends)

Nokia provides 3 months subscription to use Nokia maps. Unfortunately, Nokia Maps cover few metro cities and so I was not able to explore it completely. But for the  time I used it, it was simply great. Maps were detailed and GPS positioning was also accurate. Voice guidance was worth praising. I really liked it.

But, I needed a GPS software which would guide me in my city. I googled it and found 'wayfinder navigator'. It was a paid software for around 1500 bucks (approx) for six months subscription. The only drawback of this software was that it required GPRS to work. The Non-GPRS version is priced at for 3500 Rs (approx.) with some other navigation software (This cost was too high for me). So, I purchased the former one. I used it for a month or two .I personally didn't like it. User interface was not really cool. Also, GPRS availability is not always available in rural areas. At such times, you are left alone :-(

Few months later I found www.phonelocator.mobi.This was not a navigation software but a tracking software. The software resides in your handset and with the help of GPS and GPRS , tracks your location on their website. You can keep your location viewable to all or just yourself. You can keep the track of yourself on maps. This was a very new concept for me. I used it for few days but the concept of publicly showing your present location was a drawback. I mean, I just wanted to share my current location with few of my friends and not the world.

Now my tech hungry mind was searching for a mobile software which was  a combination of navigation + tracking. And finally I came across Google latitude which is a combination of both navigation + tracking. great, isn't it? The best part is, it can locate you by cell tower triangulation i.e.,you do not need to have GPS receiver in your handset. Although GPS receiver can give you more accurate location as compared to cell tower triangulation.( GPS doesn't works indoor whereas cell tower triangulation works wherever your phone receives the signals.)

The latitude function allows you to invite your Gmail contacts to view your location on their computer or mobile screen. Your privacy settings can easily be configured.

Recently Google latitude launched location history and location alerts. The location history maintains your location history whereas alerts lets you know when your latitude friend is near you or visits a new place via SMS or email. I have tested location history and it works perfectly fine. Although, I will be using location alerts soon once my friends agree to use Google Latitude.

Oh, did I mention, Google latitude is free!!!

But there are some drawback
  • First is that it needs GPRS connection
  • Secondly, Google Latitude doesn't works on low end phones. It doesn't works on many Sony Ericsson and Samsung high end phones even. Well, you can view requirement on the website itself.
  • Third is that It doesn't support voice instructions.
Do you also use Google Latitude or other similar Mobile App? Do post your comment about the GPS App you use on your mobile. (Those who do not use any GPS Application can also comment Tongue out )

Airtel or Reliance or Tata DOCOMO or Other. Confused???

telecom-operators-other-sDo you want to buy a new mobile operator and/or change your existing mobile operator, but confused as these days almost every Telecom Operator is offering its Mobile subscriber "Pay Per Second" pulse.

When TATA DOCOMO started it Mobile Services by offering "Pay Per Second" Plan the entire Telecom Industry was in Wait & Watch mood. It became inevitable for other Telecom Operators to reduce their call charges and introduce Per Second Pulse when they saw that TATA Teleservices Ltd achieved the highest number of subscribers in month in August and September.

So, the story so far is that all telecom operators are now offering Per Second Pulse to their subscribers. Now the point I want to stress is that now as almost every telecom operator in India is providing almost same tariffs, how should you choose between the telecom operators, which one use?

According to me their are various aspects based on which you can judge an telecom operator. I am mentioning them in the order of my preference (Do tell me if you look for any other aspect which is not mentioned by me)
  • Network Coverage
  • Network Quality
  • Tariff
  • Additional Benefit Packs (Free SMSes etc.)
  • Customer Care
  • VAS

Based on above aspects which telecom operator are you using right now or willing to use in future? Do share your valuable views with us.

Airtel Freedom Plan is poor copy of TATA DoCoMo. What do you think?

airtel-vs-tata-docomoAirtel has recently launched Pay Per Second call rates. The reason being - All the major Telecom Operators like BSNL, Aircel, Vodafone etc have started offering their consumers Pay Per Second Call rates.

Telecom Industry in India was very competitive from last few years, it still is. But after the entrance of the new operator TATA DOCOMO, a kind a stir is created in Industry. TATA DOCOMO, the GSM brand of TATA Teleservices Ltd has revolutionized the Indian Telecom Industry by offering call rates as low as 1paise/second.

As I mentioned earlier that most of the major operators (Reliance is exception in this case - It launched Simply Reliance Plan) are now offering Pay Per Second Plans but most of the operators require their customers to make yearly or monthly recharges to enjoy the benefits of Per Second Pulse. However, TATA DOCOMO subscribers do not require any such yearly or monthly recharges to enjoy Per Second Pulse rates.

Comparison Between TATA DOCOMO's Pay Per Second Plan and Airtel's Freedom Plan :


TATA DOCOMO is offering Per Second Pulse as default tariff with lifetime validity to its subscribers. All local calls can be made with TATA DOOCMO at 1paisa/second. TATA DOCOMO is also offering STD calls at 1 paisa/second, however 2 paise/second will be charged after first 27,000 seconds of STD calls, in some circles 2 paisa/second is charged after first 15 minutes of STD calls.

Airtel is offering Per Second Pulse with the recharge of Rs. 64 - 94 (varies from circle to circle) with 1 year validty to existing customers, and new customers can avail Airtel Freedom plan at a cost of Rs. 66 - 99 (varies from circle to circle) for 1 year.

What made TATA DOCOMO Pay Per Second Plan better than Airtel?

  • TATA DOCOMO Pay Per Second Plans are available for both Prepaid and Postpaid subscribers. However, Airtel’s Pay Per Second Plan is only available for its Prepaid users. Thus a major drawback is the absence of per second billing for Airtel postpaid customers
  • TATA DOCOMO customers can enjoy Pay Per Second Tariff for life without any additional charge. Airtel Pay Per Second Plan comes with 1 year validity, so after one year a Airtel customer will have to pay some charges (right now its between 64 - 94) to continue with his Pay Per Second Plan.
  • Airtel has decided to charge different rates for different networks. 1paisa/second is only for Airtel to Airtel calls. The rate for non Airtel calls is 1.2p/sec. Mathematically that makes it 20% more expensive than Tata Docomo which offers 1p/sec for all.


TATA DOCOMO has revolutionized the already fairly Dynamic India Telecom Industry. TATA DOCOMO must be feeling proud of itself. After all, Airtel tried to Imitate them and as they say, Imitation is the best form of Flattery.

Now I want you to share your views about TATA DOCOMO.

If you are a TATA DOCOMO subscribers do share your views about TATA DOCOMO with us.

If you are not TATA DOCOMO subscribers then do tell us how eager are you to get the new TATA DOCOMO connection?

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