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Internet access for free or an amount as low as Rs 5, is quite likely to excite mobile users for whom it is going to be the first encounter with the virtual world. Operators are using the potential of data to attend their slimming revenues with voice being highly competitive. A perception that most post-paid users were mobile data consumers is at last being redefined and the industry is experiencing an evolution of mid-level mobile users, wanting access beyond voice. Data is the focus around which the operators are chalking out their strategies.

Even though data penetration is not very high in the country, there definitely is a shift in mobile services usage of pre-paid users, especially in the smaller markets. At present depending upon the operator, the data penetration could vary between 20-70% .

Data uptake in India has improved and is steadily growing. In 2009, around 5 mn users accessed internet on mobile. eMarketer estimates the mobile internet users are likely to grow at a compounded rate of 100.5% reaching 162.1 mn in 2014. In 2010, mobile internet users in India will stand at 12.1 mn which will go up to 30 mn in 2011, 65.1 mn in 2012 and 114.2 mn in 2013, it estimates.

Reliance Communications president Mahesh Prasad, observes, “The metros still lead in the data consumption space with 60-70% of data revenues coming from these regions and about 20-30% coming from smaller circles.”

Earlier the data networks did not exist in these smaller regions, now with these networks in place and popularization of smartphones, data is picking momentum in theses places, he added.

Kuldip Singh, CMD, MTNL agrees, “As a company we have seen almost a 50% rise in data usage over the past few month.”

Industry has indeed seen democratization of mobile Internet with sache pricing of data. “We started with pocket Internet earlier with Rs 14 and more recently Rs 5, keeping in view the consumer requirement. This is how even a pre-paid user, who may not be a high ARPU customer can have the freedom to access the web on his handset,” says Aircel's spokesperson. She adds, “The pocket Internet has been successful across the country, besides, the metros response from markets like Bihar and West Bengal regions has been very encouraging.”

Operators and Handsets
Bundling happens at two levels-devices and content. Handsets manufacturers and cellular services providers are putting in combined efforts to make the ecosytem conducive to accelerate the uptake of data services.

CDMA technology could support data since its launch back in 2002, however, absence of affordable larger screen handsets was a deterrent. All new entrants like Micromax, Lava, lemon and Karbonn are introducing phones with large screen displays which have a much better user experience than the traditional one and half inch screen sets.

Earlier this year, two industry majors Nokia and Airtel, joined hands and introduced Airtel Nokia Data Bundle offer to the operator's customer. Airtel's customers using new Nokia handsets, could access Internet at nearly half the market price. Subscribers could use free data up to 2 GB.

“Operators continue to be vital partners for us. Together with our operator partners, our endeavor is to offer the best possible data usage plans for our consumers,” says D Sivakumar, MD Nokia, India. Airtel also announced 50% discount offer on its Mobile Internet 2GB data plan -- Samsung Wave and Samsung Galaxy S smartphone.

Reliance's Prasad says bundling plays an important role. “We began bundling with Samsung in the initial stages of data network rollouts and today we have partnerships with other players like LG, HTC and other smartphone makers as well,” he says. Innovative bundling of the content is yet another critical strategy to move ahead in the data gameplan.

Recently, Samsung launched Corby TV and Metro TV with Tata Photon Plus and Reliance Mobile Offers, enabling users to watch TV on these mobiles at high speed. Both Corby TV and Metro TV have integrated broadband Mobile TV on the CDMA platform. The Tata pre-paid subscribers could enjoy free TV subscription of 100 hours for two months. They would also get 10GB of free data transfer for two months. This was India's first ever offer of handsets with integrated broadband mobile TV.

About three to four years back, the data plans used to vary between Rs 100 to Rs 4,999. Applications are more utility based now and beyond just games and entertainment; these are some other macro factors that are helping the uptake of mobile data in the country. So, what are the apps that can be offered as a bundle to a prepaid user?

It is a misnomer that data services are essentially meant for the postpaid user. “Prepaid users behave as post-paid users at times, indicating their interests are no different from that of a post-paid user, “ says Prasad. It is essential to understand user's data needs and usage patterns. For example, a user may not have enough time and bandwidth to watch a whole program on mobile, but he could be keen on short videos, in that case applications like Mobile Video snacking could be an interesting offer.

Post 3G Bundles

The data offers raining in the Indian telecom space could just be a trailer. 3G is likely to bring more innovative offers. Even as Sunil Mittal, MD of the country's largest operator,Airtel, has indicated 3G services may not come cheap, but the present efforts of the operators are working well to introduce data to the Indian user. This, in turn, may help sell data through 3G, a much faster technology and thicker bandwidth.

“In the post 3G scenario, the bundles for data could mostly be an extension of the current offerings,” says Prasad.

Even before 3G was launched, the service providers had begun entering into tie-ups. Bharti Airtel had tied up with HTC, to offer data and content with HTC Smart .

“Partnerships are important, specifically on 3G, we have been working towards making our consumers ready for this step in the mobile revolution. Today, we have a wide portfolio of 3G enabled handsets across all price entry points, mid as well as high-end; and a wide consumer base ready for 3G services,” says Sivakumar.

Heena Jhingan
heenaj@cybermedia.co.in

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