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Carrier billing in India 2018 market report

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India is one of the fastest growing markets in the world with the second largest population of 1339M people and average age of 28 years. India’s GDP growth rate has consistently been above 5% for the last ten years, aiming for a 7,36% growth rate in 2018. It is a country where most people are young, two thirds of the population still live in rural areas and more people have access to 3G and 4G network than they do to electricity.

With over 460 million internet users, India is the second largest online market in the world. It’s also the second highest number of mobile subscribers and second largest smartphone market. Access to internet is on a fast rise, mainly due to the spread of data-enabled phones. The average mobile connections penetration is 86% and in 2018, mobile devices will account for 73% of time spent using the internet — up from 70% in 2017.

Smartphone ownership in India has rapidly become more affordable to users due to government promoted competition and consumer benefits. Mobile data usage has has increased 15 times in 3 years, from 0.26 GB per person per month in the end of 2014 to over 4 GB per person per month at the end of 2017, as per the TRAI data. Much of which is driven not only by falling 4G data prices, but availability of rich media content. Average data price in India is roughly INR 15-20 per GB (USD 0.20 - 0.30).

Mobile solutions are even believed to be the answer to many social problems - including access to health care or even panic buttons to enhance women’s safety.

Fortumo is a digital enablement platform for app stores and digital service providers for user acquisition, monetization and retention. The company connects service providers with more than 350 mobile operators across Asia, Europe, Latin America, the Middle East and Africa.

Service providers use Fortumo’s platform to manage the end-to-end customer lifecycle of mobile users on these networks through the company’s bundling, carrier billing and messaging solutions.

Fortumo’s platform is used by thousands of leading digital merchants including Google, Spotify, Electronic Arts and EasyPark. Founded in 2007, Fortumo has offices in San Francisco, Madrid, Beijing, Delhi, Singapore, Estonia and Hanoi. For more information, please visit https://fortumo.com.

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Carrier billing in India 2018 market report

  1. 1. Carrierbilling in INDIA2018 market report by Fortumo
  2. 2. India is one of the fastest growing markets in the world with the second largest population of 1339M people and average age of 28 years. India’s GDP growth rate has consistently been above 5% for the last ten years, aiming for a 7,36% growth rate in 2018. It is a country where most people are young, two thirds of the population still live in rural areas and more people have access to 3G and 4G network than they do to electricity. Key facts about India $1,960 Gross Domestic Product (2017) GDP per capita: 28 years Median age: 1339million Population: India's economy is growing fast Data: World Bank, Statista, IndexMundi $1200 $1600 $2000 2007 2009 2011 2013 2015 2017 $8000% 2% 4% 6% 8% 10% 12% GDP per capitaGDP growth rate India GDP growth rate and GDP from 2007 to 2017
  3. 3. Smartphone ownership in India has rapidly become more affordable to users due to government promoted competition and consumer benefits. There still remains the question of infrastructure, including aforementioned access to electricity. Recently feature phones have been driving growth in India’s phone market. In the first quarter of 2018, the feature phone market doubled while the smartphone market remained flat. This was mainly fueled by Reliance Jio which launched an “effectively free”4G feature phone in 2017, along with extremely cheap data plans. With over 460 million internet users, India is the second largest online market in the world. It’s also the second highest number of mobile subscribers and second largest smartphone market. Access to internet is on a fast rise, mainly due to the spread of data-enabled phones. The average mobile connections penetration is 86% and in 2018, mobile devices will account for 73% of time spent using the internet — up from 70% in 2017. 460 million internet users Data: Counterpoint Research Indians spend 89 % of their online time on mobile 35% 3%33% Credit card ownership: Debit card ownership: 85% Mobile penetration (from population): Mobile broadband access: 35.8% 32.1% 5.6% 7.3% 9.4% 9.8% RelianceJio Samsung Itel Nokia Lava Others India’s feature phone market share during January-March 2018
  4. 4. 0 1 2 3 4 Taxation info: 10% TDS or 10%-20% WHT (depending on the region) Transitioner GSMA Mobile Connectivity Index Score: 53/100 $0.15 9x lower Google Play CPI cost compared to US: Mobile data usage has has increased 15 times in 3 years, from 0.26 GB per person per month in the end of 2014 to over 4 GB per person per month at the end of 2017, as per the TRAI data. Much of which is driven not only by falling 4G data prices, but availability of rich media content. Average data price in India is roughly INR 15-20 per GB (USD 0.20 - 0.30). Indians are chugging data like never before Avg data tariff, ₹ per GB from 2014 to 2017 Data usage per user per month (GB) ₹0 ₹100 ₹200 ₹300 2014 2015 2016 2017 ₹269 ₹226 ₹79 ₹19 4.13 1.18 0.40.26 2014 2015 2016 2017 Data: Trai Data: Trai
  5. 5. 29%71% 29% of all internet users in the country are female The growing number of data-enabled mobile subscribers helps rise the digital literacy. Mobile solutions are even believed to be the answer to many social problems - including access to health care or even panic buttons to enhance women’s safety. There still is a huge untapped potential of female mobile users, since India has an extreme digital gender gap among internet users. Only 29% of internet users in India are female. The fast paced digital revolution is also posing occasional challenges such as fake news - just this summer viral fake news spreading on WhatsApp received a lot of media coverage. Sanjay Sinha Vice President of Business Development, Asia Fortumo Krõõt Olo Content Marketing Specialist Fortumo Questions or comments about the report? Reach out to us at bd@fortumo.com. WomenMen Gender % of all internet users
  6. 6. 74% Literacy (from population): Language: India has an overall literacy rate of 74% 12% Indians can speak English as a second language Literacy: about 74% of Indians are literate. Language: about 12% of Indians can communicate in English. Local language content is scarce (see recommendations below). India has 23 constitutionally recognized official languages, from which only 13 account for more than 1% of Indian population each. Also less than quarter of the population speaks more than one language. Data requirements: mobile apps should need as little data as possible, in order to perform well on slow and patchy networks and also limit the use of data for low-income users. Displaying data consumption during app usage could also help the customers ration their use of data. Potential barriers: English Hindi Others
  7. 7. Taxation info: 10% TDS or 10%-20% WHT (depending on the region) Strategic market specific pricing - that includes affordable monthly price at the level of 20-30 INR. Adopting a one-time payment approach instead of a recurring revenue model is worth considering since 95% of the users have prepaid SIMs and the average mobile balance is relatively low (around $0.7). This makes subscription based models challenging Creating regional content, which targets both overcoming the multiple language barrier and engaging local subscribers. Today already 78% smartphone users in India use it to listen to music and 67% use it to play games. Even giants like Amazon and Netflix have realized the need for localized content to battle for the user pool of Indian market. Bollywood and cricket stand out as universally popular content to attract potential paying customers Some tips for successful monetization: Taxation - merchants should keep in mind that online purchases through carrier billing incur a 15-16% WPC (spectrum fee) as well as GST (18%). While WPC is included in the EUP, GST is charged on top of EUP. Merchant payouts are also subject to TDS (10%) or WHT (10%-20% depending on the region). As Fortumo has an office in the country, merchants working with Fortumo can avoid many of these complexities.
  8. 8. Key players in the digital ecosystem: Key payments companies: AmazonNetflix Hotstar ALTBalaji SonyLIV ZEE5 Voot www.amazon.comwww.netflix.com www.hotstar.com www.altbalaji.com PhonePePayTM MobiKwik www.phonepe.comwww.paytm.com www.mobikwik.com www.sonyliv.com www.zee5.com www.voot.com
  9. 9. Operators and subscribers Carrier billing performance Price point Popularity % Price point Revenue % Monthly median revenue per user: $1.2 Price point (in USD) 0.69-0.750.14-0.3 1.4-1.48 3.52-3.74 7.05-7.5 Airtel Idea CellularVodafone Reliance Jio BSNL 328,233,082 208,068,235211,863,832 168,313,188 66,969,287 1,395,270 MTNL This summer, Vodafone India and Idea Cellular completed a merger, creating the largest telco in India with 408 million active subscribers and a revenue market share of 32,2%. Connections (active, Apr‘18) Telco Available pricing: 3 INR (0.04 USD) to 500 INR (7.66 USD)
  10. 10. Additional reading Carrier billing in Asia: 2018 market report by Fortumo Read now Carrier billing for recurring payments in India: report by Fortumo Read now White paper: Carrier bundling for user acquisition and marketing Read now
  11. 11. https://fortumo.com https://facebook.com/fortumo https://twitter.com/fortumo https://www.linkedin.com/company/fortumo-ltd-?trk=biz-companies-cym Fortumo is a digital enablement platform for app stores and digital service providers for user acquisition, monetization and retention. The company connects service providers with more than 350 mobile operators across Asia, Europe, Latin America, the Middle East and Africa. Service providers use Fortumo’s platform to manage the end-to-end customer lifecycle of mobile users on these networks through the company’s bundling, carrier billing and messaging solutions. Fortumo’s platform is used by thousands of leading digital merchants including Google, Spotify and Electronic Arts. Founded in 2007, Fortumo has offices in San Francisco, Beijing, Delhi, Singapore, Estonia and Hanoi. For more information, please visit: This document is for informational purposes only. Fortumo and the authors make no expressed or implied warranties in this document. Fortumo and the author(s) make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in this document. Any opinions expressed in this document are subject to change without notice. This document may be based on a number of assumptions and different assumptions could result in materially different results. This document should not be regarded by recipients as a substitute for obtaining independent advice and/or the exercise of their own judgement, and is not to be relied upon by recipients. Fortumo and the authors, and any of their members, directors, employees or agents do not accept any liability for any loss or damage arising out of the use of all or any part of this document.

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