Growth of Mobile Services in India

Since I joined Dilithium Networks in June, in the exciting field of mobile video, I have had a chance to reminisce about my 15 year on and off association with the telecommunication industry in India from a vendor perspective.

Going by the saying “numbers never lie”, the growth in the mobile space has been mind-boggling. By 2010, India is expected to have 500 million mobile subscribers, growing at the rate of 10 million new subscribers a month. 40% of these subscribers are expected to use their mobile phone for something more than just making a basic call. The cost of making a mobile call is the lowest in the world and mobile devices are expected to be the primary device for internet access for a big section of the population.

The auction of 3G licenses in the 2H,09 is expected to provide a major boost to mobile video and related value added services (VAS) that are unique to the socio-economic set-up for the cost conscious Indian consumer.

One of the big challenges facing India is the inadequate power/electricity production, where rural areas receive less than 8 hours of powers a day on average. Since television cannot be turned on for most of the day, mobile devices are expected to provide back-up entertainment as well – from watching cricket snippets and getting the latest scores in a cricket crazed nation, to watching news or getting the latest on the ongoing soap operas.

Mobile video and VAS are also expected to play a major role in the small business and services sectors. Some possibilities include: construction contractors making a video call to their sub-contractors and monitoring progress from their phones rather than visiting each of their sites everyday; plumbers rather than visiting multiple shops for parts can make video call to check out the available choices; farmers can call experts and show them field conditions and get advice without traveling; explaining medical conditions to experts in the cities… the possibilities are endless.

The way to I think about it is that the pipes for mobile infrastructure are ready. The next step for the service providers is to enable video and VAS that are relevant in the context of India’s socio-economic set up. The mobile revolution is just beginning in India……..tighten your seat belts and get ready for the ride.