Indian Mobility
Report 2014
Overview
Source : Forrester,TRAI
With a subscriber base of nearly 898 million, India has the second-largest telecom networ...
Mobile Market
Handset Users in India
 There are around 904 million telecom subscribers in India with more than 90% of the subscribers u...
29
28
27
26
25
24
23
22
2013 2014 2015 2016 2017 2018 2019 2020
Growth Projections
 Wireless segment growth projections a...
Indian Mobility Report – 2014 – MR team
Strategic marketing Services
Revenue Growth
 Indian telecom sector’s revenue grew...
Market Share
 Bharti Airtel is the market leader, with a 21.7 per cent share of total subscription; Vodafone follows with...
Mobile Apps Market
Source : KPCB
With smartphones in range of INR 4000 – 50,000, cheap data plans and availability of
mobi...
Mobile handset sales – India Vs Global
Mobile Ad Impressions
Source InMobi
62.8
35.4
1.8
Feature Phones Smartphones Tablets & Connected Devices
Mobile Ad Impress...
The Next Big Thing - Mobile Banking
Source : Marketsimplified.com
Mobile Banking Usage (Millions)
10
53
2009 2013
 Increa...
The Next Big Thing - Mobile Number Portability
Source : TRAI
Top States with Porting Requests in 2012-13 (Lakhs)
61.96
48....
Internet in India
Internet Subscribers in India
Source : IAMAI & IMRB study
Internet Users (MM)
 As on Oct 2013,there were 205 million inte...
Broadband Subscribers in India
Source : IAMAI & IMRB study
 India’s broadband connection base increased by 0.39% to 15.19...
Sites Visited
Source : IAMAI & IMRB
Matrimonial
• Profile uploads on matrimonial sites
increased to 1.96 million in Januar...
Ecommerce
Source: Google & TNS study
Ecommerce consumers research on multiple
devices
Indian Mobility Report – 2014 – MR team
Strate...
Source: Google & TNS study
1 2 3 4 5 6 7 8 9 10
Baby
Products
Sports
Goods
Books Tickets
Household
Products
11 12 13 14 15...
Mobile Internet Usage
Mobile internet capacity Usage
Source : IAMAI & IMRB study
Mobile internet subscribers by Dec 2013 (MM)
 Number of 3G Use...
Mobile Internet Users in India
Age Group ( %)
Source : VSERV survey 2013
9
51
30
10
Less than 18 years 18-24 years 25-35 y...
Tablet Market
Number of Tablet Users in India
 Tablet sales in 2012-13 stood at 1.9 million units as against 0.36 million units in 2011...
Smart Phone Market
Smart Phone Users in India
Source : KPCB study
Smart Phone Users as compared to top markets (MM 2013e)
354
219
94
70 67
Ch...
Smart Phone Users in India
Source : KPCB study
Market Share of Smart Phones in India
 Samsung leads the Smartphone segmen...
Opportunities
Opportunities in the telecom sector
•More disposable incomes, affordable handset cost ,decreasing call rates are luring co...
Challenges
Challenges in the telecom sector
Protecting Customer
Base
•Improving customer
experience has gained
importance as a
distin...
Conclusion
• Availability of affordable Smartphones and lower rates are expected to drive growth in the Indian telecom
ind...
Thank You
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Mobility and mobile marketing in India 2014 - report by Strategic Marketing Services

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The mobile marketing and mobility market in India is changing rapidly. Mobile (mobility) now represents a growing opportunity for brands and organizations in India.

This report by Strategic Marketing Services gives you all the facts you need including;
- numbers for handset penetration and growth projections
- mobile apps market in India
- comparisons India vs. global market
- status of mobile banking in India
- ecommerce in India including incubation time to purchase different product categories

The Indian market is moving and it is moving fast. Download the report and get more insight on mobility in India.

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Mobility and mobile marketing in India 2014 - report by Strategic Marketing Services

  1. 1. Indian Mobility Report 2014
  2. 2. Overview Source : Forrester,TRAI With a subscriber base of nearly 898 million, India has the second-largest telecom network in the world. Urban teledensity stood at 147 per cent and rural teledensity is 41 per cent as of March 2013, up from 111 per cent and 21.2 per cent, respectively, in 2009. Availability of affordable smartphones and lower rates are expected to drive growth in the Indian telecom industry On an average, about 15 million mobile subscribers are added every month in the country Nearly one-third of all mobile users in India are expected to access the web via their mobile devices by 2016, up from 9 per cent in 2011 The proliferation of smart phones and tablets, existing 2G network coverage across India, ongoing 3G network expansion, and the recent launch of 4G services remain the key supply side drivers.
  3. 3. Mobile Market
  4. 4. Handset Users in India  There are around 904 million telecom subscribers in India with more than 90% of the subscribers using mobile phones.  With a teledensity of 73.32,India has the second largest subscriber base in the world.  60% of the subscribers base belong to the urban segment. Source : TRAI Oct 2013 875.48 29.08 Wireless Wireline Number of subscribers ( Millions) 545.09 359.48 Urban Rural Number of subscribers in Millions (Urban vs rural ) Indian Mobility Report – 2014 – MR team Strategic marketing Services
  5. 5. 29 28 27 26 25 24 23 22 2013 2014 2015 2016 2017 2018 2019 2020 Growth Projections  Wireless segment growth projections at 10.1% CAGR.  Wireline segment is expected to decline by 4% CAGR due to the increasing preference to wireless devices. Source : TRAI; DoT; Ovum; Ernst & Young analysis Wireless subscribers growth projections (millions) Wireline subscribers growth projections (millions) 905 996 1097 1207 1329 1463 1611 1774 2013 2014 2015 2016 2017 2018 2019 2020 Indian Mobility Report – 2014 – MR team Strategic marketing Services
  6. 6. Indian Mobility Report – 2014 – MR team Strategic marketing Services Revenue Growth  Indian telecom sector’s revenue grew by 13.4 per cent to USD64.1 billion in FY12.  Wireless and wireline revenue increased at a CAGR* of 11.9 per cent to USD40.8 billion over FY07-12  Revenues from the telecom equipment segment in FY12 stood at USD23.5 billion as compared to USD23.4 billion in FY11.  The wireless segment (96.6 per cent of total telephone subscriptions) dominates the market, while the wireline segment accounts for the rest Source : TRAI; Aranca Research Wireless and wireline revenues (USD billion) 32.1 33.1 33.3 37.7 40.8 FY08 FY09 FY10 FY11 FY12 Composition of telephone subscribers (2013 %) 58 38 3 1 Urban wireless Rural wireless Urban wireline Rural wireline
  7. 7. Market Share  Bharti Airtel is the market leader, with a 21.7 per cent share of total subscription; Vodafone follows with a 17.6 percent market share.  BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per cent market share in the fixed line segment. Source : TRAI; Aranca Research Wireless 2013 (%) Fixed Line 2013 (%) 21.7 17.6 14.2 14 11.7 7.7 6.9 3.7 1.4 1.3 Airtel Vodafone Reliance Idea BSNL Tata Aircel Unitech Sistema Others 67.7 11.5 10.9 5 4.1 0.9 BSNL MTNL Bharti Tata Reliance Others
  8. 8. Mobile Apps Market Source : KPCB With smartphones in range of INR 4000 – 50,000, cheap data plans and availability of mobile ready regional content and ofcourse, easy to download free apps, India is considered to be one of the top ranking countries across App stores such as Apple store, Google Play(Rank 3), Nokia (Rank 1), Slide me(Rank 1), and Mobango(Rank 1). With Android getting its second biggest user base from India, the most popular mobile operating platforms in India are Android, iOS, Blackberry and Windows Phone platform. Also, Amazon has entered the mobile app market in India recently. Considering the fact that, 52% of the mobile app audience comes from an age group of 18-24, apps that are used widely by Indians are Google map, WhatsApp, and others. Also the hanuman chalisa app is a widely downloaded by the consumers of India.
  9. 9. Mobile handset sales – India Vs Global
  10. 10. Mobile Ad Impressions Source InMobi 62.8 35.4 1.8 Feature Phones Smartphones Tablets & Connected Devices Mobile Ad Impressions Q3 2013 (%) Ad Impressions by brands Q3 2013 (%) 34 34 4 3 2 1 1 22  In most countries mobile apps (Smartphone + tablet) are recording an astounding exposure and adoption, mobile users in India are far from joining the global bandwagon.  Nearly 84% of ad impressions in India were recorded through mobile websites as compared to a mere 16% on mobile apps.  Due to the widespread lead of feature phones in mobile ad impression, Nokia and Samsung have emerged as the leading manufacturers that delivered the maximum number of mobile ad impression in Q3, 2013 in India
  11. 11. The Next Big Thing - Mobile Banking Source : Marketsimplified.com Mobile Banking Usage (Millions) 10 53 2009 2013  Increasing usage of smartphones is directly correlated to the growth in mobile banking.  For banks, mobile banking has become the most promising medium of reaching out to their customers because of the ability to provide services at any time or place in the world.  Application-based banking is the most efficient way of mobile banking as it is more convenient and user friendly than the regular methods of SMS banking and net banking Indian Mobility Report – 2014 – MR team Strategic marketing Services
  12. 12. The Next Big Thing - Mobile Number Portability Source : TRAI Top States with Porting Requests in 2012-13 (Lakhs) 61.96 48.4 41.37 40.35 38.3 Karnataka Rajasthan Andhra Pradesh Maharashtra Gujarat  During the year, 47.82 million subscribers have submitted their porting requests to different service providers for availing MNP facility.  With the telecom body in India providing freedom to switch operators without having to change their numbers, as many as 100 million customers have availed the service till now. Indian Mobility Report – 2014 – MR team Strategic marketing Services
  13. 13. Internet in India
  14. 14. Internet Subscribers in India Source : IAMAI & IMRB study Internet Users (MM)  As on Oct 2013,there were 205 million internet users in the country. Expected to grow upto 243 million by June 2014 at which point of time, it is expected to overtake the US as the second largest Internet base in the world.  China currently leads with more than 300 million internet users while the US currently has estimated 207 million internet users.  Internet users in urban areas is almost double of the internet users in rural areas. 205 243 Oct 2013 June 2014 Urban vs Rural (MM) 137 68 Urban Rural Indian Mobility Report – 2014 – MR team Strategic marketing Services
  15. 15. Broadband Subscribers in India Source : IAMAI & IMRB study  India’s broadband connection base increased by 0.39% to 15.19 million at the end of June 2013, from 15.13 million reported at the end of May, according to the Indian Telecom regulator TRAI.  Its worth noting that India’s target for 2010 was 20 million broadband connections, and at this rate, this target might not be reached even by 2015. Braodband Market Share 2013 (%) 65.6 9.3 7.2 17.8 BSNL Bharti MTNL Others Indian Mobility Report – 2014 – MR team Strategic marketing Services
  16. 16. Sites Visited Source : IAMAI & IMRB Matrimonial • Profile uploads on matrimonial sites increased to 1.96 million in January 2013 as compared to 0.85 million in the corresponding month last year, a YoY growth of 130 percent. Travel • Railway tickets booked online in January 2014 were 13.15 million as compared to 4.70 million in January 2014. Apparels & Accessories • Online visit to branded apparels and designer label segments have increased by 113 percent and 41 percent respectively, when compared to the numbers of corresponding month last year. Spa & Restaurants • The online users visit to spa and restaurant segment saw a decline from 0.76 million in January 2013 to 0.54 million in January 2014. Job • The user reach for job sites is 29.37million Indian Mobility Report – 2014 – MR team Strategic marketing Services
  17. 17. Ecommerce
  18. 18. Source: Google & TNS study Ecommerce consumers research on multiple devices Indian Mobility Report – 2014 – MR team Strategic marketing Services
  19. 19. Source: Google & TNS study 1 2 3 4 5 6 7 8 9 10 Baby Products Sports Goods Books Tickets Household Products 11 12 13 14 15 16 17 18 19 20 Beauty & Personal care Footwear & Accessories Clothing Health & Nutrition Luxury Products Computers Home Decor Mobile Phones Tablet PCs 21 22 23 24 25 26 27 28 29 30 Cameras Finance & Insurance Online Buying Duration (no.of days) Indian Mobility Report – 2014 – MR team Strategic marketing Services
  20. 20. Mobile Internet Usage
  21. 21. Mobile internet capacity Usage Source : IAMAI & IMRB study Mobile internet subscribers by Dec 2013 (MM)  Number of 3G Users in India is expected to increase exponentially by 2015 and reach close to 100 million subscribers.  On an average, a mobile internet user spent about Rs 198 towards internet expenses.  According to Gartner, India’s mobile services market will reach Rs 1.2 lakh crore in 2013, up 8% from 2012 revenue of Rs 1.1 lakh crore. 103 27 Urban Rural 3G Users in India (MM) 56 96 July 2013 Mar 2015 Source : PhilipCapital Indian Mobility Report – 2014 – MR team Strategic marketing Services
  22. 22. Mobile Internet Users in India Age Group ( %) Source : VSERV survey 2013 9 51 30 10 Less than 18 years 18-24 years 25-35 years More than 35 years 9 1 Men Women 9 Out of 10 mobile internet users in India are men 69 57 44 37 Game/app Video Music Themes Mobile Content downloaded (%) Activities on Mobile (%) 59 41 35 26 Download mobile content Find a good deal on something Learn about a brand Locate something nearby56 19 19 6 Multiple times per day 2-3 times per day Once Not at all Social Media Usage (%) Indian Mobility Report – 2014 – MR team Strategic marketing Services
  23. 23. Tablet Market
  24. 24. Number of Tablet Users in India  Tablet sales in 2012-13 stood at 1.9 million units as against 0.36 million units in 2011-12 witnessing a growth of 427 per cent.  Increasing usage and preference for tablets in the education sector, private enterprises and growing demand from the smartphone and laptop users would drive the market for tablet PC over the coming year Number of Tablet User (MM) 0.36 1.9 2011-12 2012-13 Source : MAIT Indian Mobility Report – 2014 – MR team Strategic marketing Services
  25. 25. Smart Phone Market
  26. 26. Smart Phone Users in India Source : KPCB study Smart Phone Users as compared to top markets (MM 2013e) 354 219 94 70 67 China USA Japan Brazil India 6 Smart Phone Users % as compared to overall subscribers  India ranks fifth among the top countries for smartphone users with an estimated 67 million subscribers.  Year-on-year growth of smartphone subscribers in India stands at 52 per cent, which is expected to be the second fastest after Taiwan at 60 per cent, among the top 30 smartphone markets in the world. Indian Mobility Report – 2014 – MR team Strategic marketing Services
  27. 27. Smart Phone Users in India Source : KPCB study Market Share of Smart Phones in India  Samsung leads the Smartphone segment in India.  There are 67 million smartphone subscribers, which is 6% of the total subscribers in India, growing at the rate of 52% YoY.  It has been predicted that India will become the world’s third largest smartphone market by 2017 after China and U.S 43 13.3 8.3 35.4 Samsung Nokia Sony Others Indian Mobility Report – 2014 – MR team Strategic marketing Services
  28. 28. Opportunities
  29. 29. Opportunities in the telecom sector •More disposable incomes, affordable handset cost ,decreasing call rates are luring consumers to go for wireless subscriptions. Increasing wireless subscribers •Telecom subscribers in rural areas is likely to outpace the number of subscribers in urban areas in coming areas as there is big market potential. Untapped rural markets •The Internet penetration is expected to grow steadily and is expected to be bolstered by government policy •The internet penetration though slowly increasing is still low as compared to other developed countries. Rising internet penetration •More and more players are entering the telecom market. This ultimately favors the end consumers as they are spoilt for choices and that too at affordable rates. Competition •Currently the 3G deployment in India is at a very nascent stage.The 3G services will be instrumental in stimulating future growth of the telecom industry. 3G services – Potential Growth Driver •In the wireless communication arena, WiMAX technology has emerged as one of the most significant developments. Deployment of WiMAX would not only enable the provision of high-speed internet services through high bandwidth spectrum but also prove to be a useful mode of communication in inaccessible terrains. Worldwide Interoperability for Microwave Access (WiMAX) – Reaching the Last Mile •The value added services segment is rapidly emerging as a potential revenue generator for the telecom services industry. Given that a substantial part (around 60%) of the total VAS revenue goes into the kitty of the service providers, the development of this segment is likely to offer them an opportunity to support their falling ARPU. Mobile Value Added Service (MVAS) – An Opportunity to Increase the ARPU Indian Mobility Report – 2014 – MR team Strategic marketing Services
  30. 30. Challenges
  31. 31. Challenges in the telecom sector Protecting Customer Base •Improving customer experience has gained importance as a distinctive means of securing and enhancing lifetime value. The bottom-line is that operators cannot afford to give them low or equal service levels, holding IT and implementation issues responsible. Sustaining margins and improving operations •Major growth will be driven by the rural Indian subscriber base, where current penetration is 30% and ARPU is just INR 160. Service providers will face the dual challenge of serving them cost-effectively and giving relevant services that will be adopted and used. Lack of Telecom Infrastructure •Lack of telecom infrastructure in semi- rural and rural areas could be one of the major hindrances in tapping the huge rural potential market, going forward. The service providers have to incur a huge initial fixed cost to enter rural service areas. Price War •The ever-increasing competitive intensity in the sector, with licenses and spectrum in several circles allotted to newer operators, is also a concern and could lead to unrealistic pricing levels to grab subscribers. Spectrum Allocation •3G Spectrum availability is one of the major concerns for the industry. Lack of adequate spectrum which is the most integral part of the mobile telephony sector could hamper its growth severely. Regulatory Charges •The regulatory charges in the telecom sector have a complicated structure because multiple levels impede the smooth implementation of telecom projects in India Indian Mobility Report – 2014 – MR team Strategic marketing Services
  32. 32. Conclusion • Availability of affordable Smartphones and lower rates are expected to drive growth in the Indian telecom industry • Low priced mobiles with a vital features (a decent screen size, camera, storage space, high battery life & others) will rule the market irrespective of brand • Raise in usage by women & rural population will boost the market growth drastically • Reduction in pricing will boost the mobile internet users significantly – different package options for rural Vs Urban • Specially Customized data packages will also play a major role in attracting rural mobile users to use mobile internet • Packages should be designed to address different segments (SEC) • Messenger apps like WhatssApp, Wechat, Viber & others will be used widely as a medium of communication which results of low usage of traditional SMS, MMS , e-mails and calls as well. • More users will try & use Video calls - especially will be used widely in urban population When it comes to Indian consumers…
  33. 33. Thank You

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