Nobody can doubt the potential of the Indian market. Perhaps to give a feel, humongous is the right word. Big opportunity attracts larger crowds. First it encouraged many service providers (who opted from concentric diversification to lateral diversification), and now it is the turn of the handset manufacturers.

Again the same story and behaviour can be seen here. The opportunity is attracting any form of business to jump in. India’s domestic players are increasing sharply and they are pegging in to the battlefield to mark their footprints. First time mobile users are surely considering buying a “Made in India” mobile handset and others are able to experience several features at very competitive rates. Yet some are positioning for their super-jumbo power back-up; with some claiming 72 hours of battery back-up.

Voice service is something default that everybody expects from a mobile phone. Consumers now want to go beyond voice. They want to explore data services, browse Internet and remain as much as social. Mobile phones are helping them to “pocket the society.” So definitely, with data services becoming very affordable, everybody wants to empower the hand with as many features as possible. With at least, a years guarantee / warranty, one finds reliable value for money in buying these handsets.

These vendors fit in the middle of the handset manufacturer layer. On top we have the global players and at the base we have the grey market which comprises of China made handsets. This domestic handset market is spanning out in both ways and very soon we shall see this layer as the fattest of all. Mobile users from the top layer will switch to it for getting same features at lower costs and the people addicted to grey market get assurance by climbing up.

Market is already flooded with bundled services where an Indian made handset offers a sim as well. The next evolutionary step seems to be that the service providers will be launching their own handsets. They have two easy options to go by. Either acquire these upcoming handset manufacturers; remember, service providers are cash rich, or venture in to the handset manufacturing using Android like platform as OS. Android, by the way, recently hit 100,000 applications landmark in the Android Market.

With 3G services now expected to dominate the market, such handsets will remain in great demand and India has the potential and ability to fill up the supply side indigenously. No doubt, with the help of Chinese manufacturing.

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Though politicians across the ages are joining the social networks, but it is common among young and forward looking leaders. They are tweeting and posting every day; their views, interpretations, ideas and comments. The goodness is that people, not only can read them but also counter-comment them. This makes it interactive. So how a democracy should have been functioning, Internet is enabling it. This is clearly giving the voters, particularly the youth of India an idea to make a personality based selection of a leader and we could soon be seeing the end of polarization towards parties. Instead, people will be liking a particular person in the form of their representative. In case of routine matters, localised leadership is definitely needed, so we cannot expect a person from Delhi selecting a leader from Mumbai, but surely in case of expressing a desire to have a particular person as the Prime Minister or any other functionary.

Some might argue that it isn’t going to make any difference as the Internet penetration is still too low for it being considered as a mass media in India. But I argue, it is the beginning, a good beginning. It is also giving a platform to express to the population of India that has been shying away so far and are now somewhat ‘repenting’ of not taking the right steps at the right time. Had they been actively participating in elections and selections, Indian leadership would have a different kind of group of people at the helm of affairs.

This social network politics might be useful and limited only to some metros or large cities, but even if it makes a difference to around 100 odd MPs of the total strength, its a good beginning. In urban India, we are facing with complex issues and the major one is competition at work; not allowing people at large to spare some time to attend to politics, which is at the end of the day affecting them a lot. But with these social networks, they are at least able to track their leaders and interact with them.

So we must encourage leaders to tweet and interact with them. This will definitely help India grow as a democracy at the level that it should be.

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If we look at the advertising scenario of India, there are few heavy advertisers like Unilever, Procter & Gamble, Airtel, Hero Honda, etc. They buy spots in all the major shows where they see the maximum viewership. But, it does not give them a competitive edge. Their competitors can also place an ad during the same period. Or the channel can and does show advertisements of competing products.

Even though the people see their products, they also see the competitor product – which is good as well as bad. I personally feel, an advertiser must sponsor a show that is not also sponsored by its competitor. It is because of several things like brand, positioning, image, etc. that it could easily integrate with the contents of a particular show. If the competitor also places an ad with the same show, these things become industry specific rather than a brand specific.

The key in advertising is what one is advertising on – in case of television it is the content. So for a long term competitive advertising, advertisers must own the content rights. For instance, with respect to India, a product for female must own the content rights of say any K series programme so that only its ads are shown during that show. This can only be done through one strategy and that is if the advertisers launch their own channels. Rather than spending through others, they could buy the content for their channels. This would not only give an assured channel for advertising their products only but it would also save on the spending as many intermediaries are eliminated.

This way we could see channels owned by P&G, Unilever, Tata, etc. and they could just promote their products through these channels. All the content they would buy, would be theirs and they would have the exclusive rights of showing it. This is surely going to make advertising competitive and not only advertisements but the content of the channel would play an important role. For instance, Kingfisher is a premium brand, so having a channel that would have content pertaining to elite would be describing it.

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For the month of March, over 15 million subscribers have been added in the wireless segment. In absolute terms Reliance leads the operators with a little over 3 million additions to the subscribers. This number seems more predictable as Reliance is operating on a wider map in the country and its wireless services comprise of CDMA and the GSM.

But the real surprise comes from Aircel. The operator has been predominant in the southern states of India. Its presence on the country map was limited to this region and in terms of visibility, it was not of the stature of other competitors from the private sector. However, the numbers of March published by the regulator (TRAI) reveal a different story. Among the private cellular operators, Aircel has seen the maximum growth; it added 5.73% new subscribers compared to the previous month. Although, the operator has over 18 million of the total 391 million subscribers, which is around 5% (all wireless subscribers including WLL-F) of the market, the growth rate itself is an indication of its plans. No other private operator has been able to register a growth rate exceeding 4.4%. State owned BSNL leads the overall wireless operators with 5.89% increase. But this is attributed to WLL as well.

Talking in terms of pure cellular networks, Aircel has definitely emerged as a leader by way of proportionate increase in subscribers for the month.

Perhaps this has encouraged the operator to advertise heavily as it is expanding its network in other regions (circles).

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India is facing many issues that make the lives of the people insecure. People across ages, religion, race and so on. We see extortions, kidnappings, rapes, eve teasing and other similar heinous crimes happening everyday across the country. Unfortunately, teenagers and kids are the ones targeted most of the times. It is not only that grown-ups can face some emergencies. Kids and teenagers are more prone to such risks.

In a routine day, youngsters are exposed to high risk timings like commuting to school and back, attending extra tuition classes, attending activity and sports clubs, hang out with friends, etc. At these occasions parents are not usually with their wards and the criminals often take advantage of such instances and commit crimes.

Legally anybody under 18 years of age cannot enter into a contract in India; hence cannot subscribe to mobile services. So what most of the parents do (who want to be extra cautious); they subscribe to a prepaid mobile service in their name for kids to use. This way they are always in touch with them and can be around them in shortest possible time when needed.

It is not necessary to say that this is not good. With kids exposed to so many threats in India, it is important that we have a system that keeps kids connected with their parents and the emergency service providers like police, so that they are able to contact them when required. It will not only help in getting rid of the habit of some parents who get a connection in their name to be used by the kids but will also be beneficial for the law abiding parents whose kids are equally important to them but do not want to go against law.

Then there are several mobile value added services like ringtone downloads, wallpaper downloads, etc. that mainly attracts kids and if remains unchecked can consume a lot of their pocket monies which is effectively borne by parents. If the mobile services are offered under parental control as is offered by several operators, like AT&T in US, parents can easily restrict the services and budget allocations per type of service.

To initiate the process we need to set in place regulations providing for such services where the subscription for kids will remain linked with their parent’s connection. Legally a parent will be the customer. Then there has to be a bouquet of services that could be offered for kids. Essentially these could be calling restricted numbers to be managed by parents, access to emergency numbers and a few value added services as may be thought by parents. So the TRAI must initiate process of consulting service providers and other stake holders about deciding the framework of such a service.

For service providers this will mean additional revenues, early capturing of customers as these kids would grow in the full fledged customers and a service that will be a service to the citizens of the nation. The early entrant into this space can also get some extra share of the pie by seeing some switching happening of the parent’s connections. On top of it there could be some new value added services like cartoons, comics and short stories through which service providers can stream in additional revenues.

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India has a complex demography and that is reflected in any of the exercises including elections that involves the whole country. The geographic diversity of people makes it tough at times even for the political parties to reach to them in just a few rallies. And then the key leader of each party must reach to every main voter pocket, else the opposing party will take the advantage by telling the inhabitants that the other party is neglecting them. So the key leaders have to address at every nook and corner for increasing the prospects of their party. It is based on the direct marketing principle – ‘Reach as many people as you can to expect higher success ratio’.

India has a very high threat perception as a nation. Due to so many factors, politicians have always been a soft target of terrorists and killing them makes big news. So the government – law and order ensuring agencies, have to make every possible effort to keep the politicians secure. At the same time during elections, politicians are in the field. The police and other security agencies are busy in ensuring safety of the politicians organising rallies and reaching to the masses. It demands a fool proof bandobast. This arrangement comes at a cost which is to be borne by the government, eating up a lot of tax payers’ money. Such arrangements get intensified as the information agencies get any further intercepts like the recent one, after which the home minister of India, wrote to 39 VVIPs about the increased threat perception to their lives.

This will never mean that these politicians will not attend rallies. Elections are do or die situation for politicians and they need to campaign to win. I am not any security expert, but surely, securing a single rally of each of these politicians could cost the government in crores (Millions) of Indian rupees.

In place of all this, the election commission and the political parties together with government must devise policies encouraging extensive usage of technology in campaigning. These could be from the basic medium like a radio to podcasts and webcasts. The leaders could also make use of television channels, although private, if there are some restrictions on using the state owned Doordarshan.

Using technology would be of great help to the politicians and it will surely save a lot of my money, being a tax payer. There is one advantage to face-to-face interactions – the politicians come to know about the response. But this can be very easily done under present technology available. Political parties can get statistics about how many people, from which regions, etc. heard their radio speech over an FM channel. Or how many people were watching them on a television programme. Similar statistics can be had for the web based tools. Even people can get back to these leaders through sms, emails or telephone calls. That will make the programme interactive. Some might have suspicions about the success of such campaigns, as how many people will be using a particular media. But at least a radio and a television set is available everywhere in India. One more good that technology could do, is single speech could be delivered in local languages across the country simultaneously. That way a national leader could be heard by people across the regions.

It is high time that the authorities must insist political parties to explore these alternative methods of reaching to masses. If they have any doubts, let them check with the general information about the political activities of India that people come to know through news channels over television, radio and sources over Internet. The results will definitely encourage parties to go ahead because these sources have made the leaders a public figure. That is why leaders like Sonia Gandhi, L K Advani, Lalu Yadav, Sharad Pawar (just for reference) and other stalwarts are known throughout the country even if people in many regions have not seen them physically.

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But it will not be an easy way for IPTV to grow in India. India has close to 130 million homes with a television and majority of them are fed by cable, around 55%. Rest is with conditional access, Direct to home and the terrestrial feeds. So it is not that IPTV can become a source or alternative of reaching to untapped market. The remaining households that do not have a television set cannot be the target market. They are in the deep regions of India that are not on the Internet map and might not even figure for decades to come; they are really very remote and do not have the affordability to own a television. They even lack basic facilities like the electricity. So they are used to the traditional ways of entertainment.

Effectively, the target market for IPTV could be the near 4 million broadband customers. Broadband subscribers primarily reside in urban India comprising of metropolitans and large cities. Their television sets are fed by cable, conditional access and DTH. Of these DTH has been recently introduced and there are seven providers including the national broadcaster Doordarshan which is offering the free DTH services (there is no monthly fee charged, but the service is basic). So the large cities where majority of the broadband customers are, use conditional access and DTH replacing the existing cable TV. Both conditional access system (introduced in four metros of Delhi, Mumbai, Kolkata and Chennai only) and the DTH have been operational for the past 2-3 years and the consumers have invested in the CPE. It is very rare that they will be inclined to switch to IPTV, effectively for nothing.

On top of it is the speed of broadband. ISPs in India offer broadband services starting from 256 KPBS that could go up to 2 MPBS. Most of the times, the speed is under 2 MPBS at around 1.3 – 1.5 MPBS over which every IPTV platform will not function optimally. Generally IPTV solutions are designed to operate with a minimum of 2 MPBS of speed. There are also issues about the uptime of Internet services. There are still locations in India where broadband services see regular failures.

The key to the success of any IPTV content in India is with the content. Interactivity of the package will not be a thing that will attract subscribers in large numbers. Generally, IPTV providers position their offers as something having a value addition by way of content, interactivity, applications and so on. But in India, these things seem to be very difficult and when consumers have already had the taste through CAS and DTH applications. Consumers are using EPG and other interactivity features that these platforms are offering. Games, recipe books, weather info and stocks info is also not going to attract the Indian consumer. Entertainment in India means movies, soaps and music, all of which is available over the present TV systems. The IPTV providers cannot fool the consumers in this area, where the India consumer is very educated and informed. If IPTV has to be a success thing in a short span of time, it has to really offer something of value add and that value addition has to be a real, visible, distinguishable and meaningful from consumers’ perspectives. Only then IPTV can have some foothold in India.

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TRAI has replied back to DOT maintaining its initial stand on these issues; which any and every regulator would do. The TRAI has recommended realistically for issues arising out of Internet Telephony that will give a room for growth for the technology and at the same time lead to a sizeable market of Internet Telephony in India. The philosophy of the recommendations has been to aim at two things – designing a framework for the technology and giving the technology enablers a free hand which is very crucial particularly in the initial stages of the technology to result in a mature market. Only by showing some flexibility more and more players will dive into the market which is always beneficial for the end users.

Among the recommendations, the regulatory authority has recommended that the decision of facilitating emergency number calls over the Internet phones should be left to the service providers. It should not be made mandatory.

This debate over emergency number calling over VoIP networks has been there globally. Most of the regulators concluded that this decision be left over with the service providers as VoIP is primarily an alternative telephone line or a second telephone connection with the users. It is essential that users must be able to call in case of emergency and for that they could use their primary PSTN line.

India is likely to follow the universal trend of Internet Telephony being an alternative route and it will be a secondary line with the users. If not a fixed line, the users will surely be having a mobile phone over which they could make emergency calls.

Another interesting phenomenon is about the level of service offered over emergency numbers and then the usage of emergency numbers. The emergency number service in India only allows users to call for police, fire services and the ambulance services depending on the requirement. No advanced services are offered such as geographic identification of the caller to facilitate prompt services. A caller has to make a number of calls before pin pointing the right person for help. It is not an automatic system like in most of the mature telecom markets. Most of the times making a call is of no use and the person has to use other methods even in the case of emergencies for the callous attitude of the authorities who are approached for the help.

India is a security sensitive country and it is very important to identify the location of the caller for various reasons. In other countries the advanced emergency number call systems help authorities like police and secret services to find out the location of the caller. But in India, location is only ascertained after intervention of the service providers. One very useful tool for this has been CLIP that lets the other party know about the number of the caller. Once the E.164 numbering is followed for Internet Telephony in India (as recommended by TRAI), having CLIP for Internet Telephones will not be an issue and the service providers will have to capability of tracking the callers.

With this scenario, it seems that TRAI has aptly recommended that enabling emergency number calling be the discretion of the service provider. There is no reason why DOT should make it an issue for Internet Telephony to start in India. Once the Internet Telephony is operated in a controlled manner through these service providers, it will be as easy for the authorities to track the calls and callers in case of any need as is with the regular PSTN and mobile telephony. Users will be able to make emergency calls when needed through their primary lines and the callers can be traced through CLIP and other such facilities with the intervention of the service providers.

Over the past few years, TRAI has been among very few regulators who are encouraging emerging technologies than finding out impediments in making them a reality. Be it conditional access, IPTV, DTH, WiFi or the broadband services, TRAI has always tried to develop an atmosphere which would incubate the technology and service leading to the maturity of the telecom market in the country.

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