Ashish Mishra
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The document discusses the opportunity for value-added services (VAS) in rural India as telecom operators expand connectivity. It notes that rural consumers will drive future mobile growth and their needs include both content similar to urban areas as well as rural-specific content. VAS providers must offer locally relevant content and services delivered in accessible formats to succeed in rural markets. Examples of potential rural VAS discussed include services providing information on agriculture, education, health, entertainment and more.
Ashish Mishra
- 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 IMImobile
- 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. IMImobile
- 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. IMImobile
- 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. IMImobile
- 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. IMImobile
- 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. IMImobile
- 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 IMImobile
- 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 IMImobile
- 10. Rural VAS Thank You IMImobile