Mobile Tv in India
Marketing Mobile TV in India
A Case study
Introduction – Executive Summary
India represents a unique opportunity in direct mobility due to its huge potential customer base and the relatively moderate penetration rate of services across this customer base. Paradoxically, the market is fragmented and price wars on voice services have reduced the margins on voice services to a minimum. In this context, with the upcoming advent of 3G, the possibility of generating more revenue than ever before from data related non SMS value added services is higher and more likely than ever before.
Amongst the many value added services, Mobile Television is unique because it combines two screens on a single device – television & mobile. The penetration rate of mobile TV is currently very low. While technology in terms of suitability of mobile device has limited its spread to a certain extent, the problem looks set to be resolved within the next 36 months as mobile manufacturers are poised to provide sufficiently technologically advanced phones - thereby eliminating the challenge posed by the incompatibility of the mobile device. A more fundamental problem lies in the consumer choosing to view television on a mobile – the rigidity in not doing so poses the biggest challenge to future growth of the market.
Traditionally, service providers have approached the mobile TV market by pushing all available content to the customers and allowing the customers to create their own bundles in line with their choices. The strategy is useful in a nascent market, however in a market poised for growth, the cost of providing an undifferentiated product with regard to competitors is high. It is therefore important for service providers to understand consumer needs in a better manner to be able to respond to the customer needs and increase their share of the market.
The objective of this exercise is to understand the landscape of the Indian telecom Industry, determine the forces that influence
A Case study
Introduction – Executive Summary
India represents a unique opportunity in direct mobility due to its huge potential customer base and the relatively moderate penetration rate of services across this customer base. Paradoxically, the market is fragmented and price wars on voice services have reduced the margins on voice services to a minimum. In this context, with the upcoming advent of 3G, the possibility of generating more revenue than ever before from data related non SMS value added services is higher and more likely than ever before.
Amongst the many value added services, Mobile Television is unique because it combines two screens on a single device – television & mobile. The penetration rate of mobile TV is currently very low. While technology in terms of suitability of mobile device has limited its spread to a certain extent, the problem looks set to be resolved within the next 36 months as mobile manufacturers are poised to provide sufficiently technologically advanced phones - thereby eliminating the challenge posed by the incompatibility of the mobile device. A more fundamental problem lies in the consumer choosing to view television on a mobile – the rigidity in not doing so poses the biggest challenge to future growth of the market.
Traditionally, service providers have approached the mobile TV market by pushing all available content to the customers and allowing the customers to create their own bundles in line with their choices. The strategy is useful in a nascent market, however in a market poised for growth, the cost of providing an undifferentiated product with regard to competitors is high. It is therefore important for service providers to understand consumer needs in a better manner to be able to respond to the customer needs and increase their share of the market.
The objective of this exercise is to understand the landscape of the Indian telecom Industry, determine the forces that influence