Year 2006 saw the total number of Indian mobile subscribers soar
past the 100 mn mark; in fact at the close of November, the exact number of
wireless subscribers, according to TRAI, was 143.02 mn. November also saw the
highest-ever addition in a single calendar month-6.8 mn subscribers. The net
addition to both wireless and fixed-line subscribers in the first eight months
of FY 2006-07 was almost twice that for the same period in FY 2005-06. If anyone
projected such growth rates a few years back, he would have been pronounced
insane.
Compared to this, the growth and spread of computers seems to be
on a toy train-the one on which you can get of and jump on again without
missing a beat: A computer penetration of 18 per 1,000 people (2005-06), which
is far below the world average of 100 per 1000, and 5 mn client PCs (desktops
and portables like notebooks) in a year, in a country of 1 bn people.
Why this huge contrast?
Mobile phones have a natural advantage over PCs-voice-based
usage. But riding that advantage has meant a huge effort as well as loads of
money. Investments in the telecom sector have been far higher and more
concentrated than in the IT industry. From the licensing fee to the marketing
budgets a lot of investment has come in. The mobile service providers-because
of intense competition-left no stone unturned in telling the public about
their services and why they were better than the competitors.
| Evolution
of a mobile phone from a simple voice-calling instrument to a smart phone
that could offer almost computer-like features, was a massive leap |
Incidentally, the Indian market is the fastest growing mobile
market in the world. This success has also been based on innovation. The mobile
services market developed several innovative value added services and
applications. These were of two kinds: useful apps that made user experience
simpler, and apps/services that offered entertainment. 8888 services, MMS clips,
games, etc, fall in the latter category. User relevant applications came in very
rapidly. Evolution of a mobile phone from a simple voice-calling instrument to a
smart phone that could offer almost computer-like features, was a massive leap.
The mobile offers clear and intuitive benefits to the end user.
Price is the other thing that tilts the balance in favor of
mobiles over computers. Though the initial pricing was high, mobiles became
cheaper and affordable very quickly. The mobile market offers the basic service
and instrument at a pretty low cost, while it makes money from various
value-added services. The basic model here has been developed keeping user
convenience in mind. Add to that the fact that using a mobile phone requires no
real training. For instance, a first-time user doesn't need to go to an
institute to learn how to operate a mobile phone! Availability of local language
content has also helped in nudging up the subscriber numbers. Mobile phones are
said to have become the third-most addictive thing after cigarettes and coffee.
Computers, by contrast, have not been innovative. For the
masses, it's not yet a compulsory purchase. Entry price point is high,
software licenses are prohibitively expensive, learning curve is far steeper
(and can be expensive), and the value for money is not that obvious. It's
still something the majority can do without, or can make do with a public one.
The killer application that can change their day-to-day life is still elusive.
Local language content is making its presence felt, mainly in e-Governance
applications, and Web portals. But for the common man, their usage, or impact,
is far removed leave alone visible.
And, if proof was required, the numbers speak for themselves.
There are obvious lessons that the IT industry needs to absorb in case it wants
to grow at the rates of the new entrant.
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