Statistical Overview of the Indian Telecoms & Value Added Services Market
Anuj Khanna, CEO, Wireless Expertise
Monetising Mobile Conference, London, September 2010
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Population: 1.2 billion
GDP: $1.3 trillion
Mobile Subscribers: 584 million
Wireline Subscribers: 37 million
Urban Teledensity: 120%
Rural Teledensity: 24%
Internet Subscribers: 16 million
Wireless Data Subscribers: 178 million
Headline Numbers for India
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Economic Growth
600 700 808 9231168
1314
8.5%7.5%
9.4% 9.6%8.7%
6.7%
0
300
600
900
1200
1500
2004 2005 2006 2007 2008 2009
0%
2%
4%
6%
8%
10%
12%
Nominal GDP (USD bln) Real GDP Growth% (Y-o-Y)
Indian Economy – GDP and Y-o-Y Growth
Note: Figures as of March end for each year
7.4% growth forecast for 2010
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Young and vibrant demographics
Indian Population – Break-up by Age Groups
18%
15%
11%
7%
7%
20%
22%
0-9 19-Oct 20-29 30-39 40-49 50-59 60+
17%
15%
12%
9%
9%
19%
19%
Population 2005: 1.1 billion Population 2015E: 1.3 billion
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Mobile Subscriber Growth
Indian Mobile Market - Subscribers and Y-o-Y Growth
Note: All figures as of March end for each year
34 5299
165
261
584
392
55%
89%
67%58%
49%50%
0
200
400
600
800
2004 2005 2006 2007 2008 2009 2010
0%
20%
40%
60%
80%
100%
Mobile Subscribers (mln) Subscriber Growth% (Y-o-Y)
20 million new subscribers being added every month
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Lower ARPU vs. Larger user base
Indian Mobile Market – ARPU (Q-o-Q)
220205
185164
144
11199 92 89 82 76
131
0
50
100
150
200
250
Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10
AP
RU
(IN
R p
er
Mo
nth
)
GSM ARPU CDMA ARPU
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Mobile Market Share
Indian Mobile Market – Operator Share
Break-down of ‘Others’
Aircel 6.31%
MTNL 0.87%
Unitech 0.73%
Sistema 0.65%
Loop Mobile 0.49%
S Tel 0.17%
HFCL 0.06%
Videocon 0.01%
Etisalat 0.00%
Total* 9.28%
17.26%
11.89%
11.29%
10.92%
9.28%
17.53%
21.84%
Bharti RelianceVodafone BSNLTata IDEA / SpiceOthers*
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Indian film content drives mobile entertainment
Ringtones
Ringbacktones
Images
Animations
Competitions
Trvia
Games
Videos
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Mobile Value Added Services Market
Indian MVAS Market – Contribution of SMS vs. Non-SMS
64%
36%
SMS Non-SMS
73%
27%
SMS Non-SMS
2009 (INR 90 billion) 2011E (INR 142 billion)
Total MVAS Market Size: ~INR 90 billion (2009) & ~INR 142 billion (2011E)
Sources: FICCI, Wireless Expertise Analysis
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Caller Ringbacktones are big business
Indian MVAS Market – Contribution of Non-P2P SMS Services
8%
9%
18%
20%
45%
CRBT
Voice Portals
P2A SMS and Alerts
GPRS / WAP
Others
Sources: FICCI, Wireless Expertise Analysis
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Reality TV drives premium message volumes
India’s version of who wants to be a millionaire
Big Boss/Brother
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Indian Media & Entertainment Market MAP
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Opportunities in India
1. Large urban high spending user base
2. Growing rural subscriber base
3. Nascent value added services market with a lot of growth opportunities.
4. Young demographics
5. Appetite to partner with western firms who bring in a unique product which can drive volumes.
6. Easy to communicate, English is a commonly used business language in the cities.
7. Consumer demand for basic goods and services is still growing.
8. Large majority of consumers have skipped legacy fixed line services and directly using mobile phones as their main channels of communications.
9. Developing digital media and entertainment industry.
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Advice for entering into the Indian Market
1. Think Big • You require volume, scale and a mass market proposition.
2. Visit India• Meet the operators, content license owners, aggregators, media
houses and platform providers.
3. Think global and act local• Localise and customise your product / business model for India.• Tweak your pricing strategy to match the Indian consumers buying
power.
4. Test the waters• Invest a little to test the market.• Consider local partnerships
5. India is India• Do not compare it with Brazil, China, Europe or anywhere else.• Have a long term strategy and be patient.
© Wireless Expertise Ltd, 2010. Market Report, “The Indian telecommunications Market”
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Anuj Khanna,
Mobile: +44 7916 056 916
Email: [email protected]
www.wirelessexpertise.com