A REPORT FOR VNA Software Solutions Pvt. Ltd.

on

Mobile Video India, 2012 2020

Submitted by: Tarun Kumar 09557349709/09650979673 mailto:tarunkumar123@gmail.com

Abstract
As per the research conducted by Pyramid Research, users availing mobile video services in any form will become 5 times by 2014 from 2008 to reach 534 million and 70 percent of these users will come from emerging markets like India. This will constitute around 8.5 percent of total mobile subscribers by 2014 comparing to 2.5 percent in 2008. The market for mobile video services worldwide in 2008 was $6.7 bn and is expected to become three fold by 2013. India is the country which is adding on an average, more than 15 million telephone subscribers every month during a financial year. With more than 900 mn mobile users and growing smart phone users, mobile TV can be a viable replacement for TV sets. As per TRAI, Number of TV Homes in the country is estimated as 133 mn while the average number of family members in the Homes is around 4 creating a huge opportunity for mobile TV to become the complimentary product for Home TV sets. Mobile video service segment is still in rudimentary state in India but given the growth of telecom sector in the recent years backed by value added services, the future certainly seems promising by next 5-10 years.

2| Page

Table of Contents

1. 2.

Introduction............4 Evolution of mobile services in

India............................................5 3. 7 4. 8 5. SWOT Analysis....9 Major Mobile Video Service Operators in India Type of Mobile Video Services..................................6-

........................................................

6. Future Prospects...............................................................................................10 7. Conclusion........................11 8. References....................12

3| Page

Introduction
India has 121 mn Internet users in India (accessing internet at least once a week), making it the third largest internet market in the world after China and USA. Also the projection of 1bn mobile phones in the country by 2012 does not seem too far. As per TRAI, The total wireless subscriber base {GSM, CDMA and WLL (F)} stood at 584.32 million on 31st March 2010. The number of wire line subscribers on 31st March 2010 was 36.96 million. The number of wire line subscribers on 31st March 2010 was 36.96 million. There were 16.18 million Internet subscribers on 31st March 2010 as compared to 13.54 million on 31st March 2009. Besides the internet subscribers mentioned above, there are 117.87 million wireless data subscribers who are accessing internet through wireless (GSM and CDMA) networks. The number of Broadband connections on 31st March 2010 was 8.77 million compared to 6.22 million as on 31st March 2009. Growth of subscriber base (in mn) from 2000 to 2010

Source: TRAI, Annual Report 2009-10

As per the above graph, the growth of subscriber base was 50% in 2010 and by the end of 2011 it is expected to maintain the momentum with more than 900 mn subscribers by the end of 2010.

Evolution of Mobile Video Services in India

MMS still pictures With the introduction in some where after mid 2002, mobile video services took off in the form of MMS pictures, animations and presentations followed by MMS in video form. Video MMS The next phase of mobile video services initiated as creating actual video clips and transferring them as multimedia messages. The mobile phones started having media players to run these video files and memory cards to save them .The user could create their own videos or open an existing video and enjoy sharing it through mobile networks. Video Downloads The next phase involved transferring mobile videos through Bluetooth and later on with advent of mobile internet users could stream videos or download the videos over web. With the introduction of interoperability and device convergence, users could connect to other desktop or dynamic devices and transfer the video to their mobile and sharing with their friends. This enhanced the mobile experience for the user and average revenue per user for operators and manufacturers. It ignited a new phase of building robust such platforms and building mobile hardware and software on those platform. With 2G and 3G technologies, mobile video downloads and streaming services have gone to the maturity phase now.
2002 2003 2004 2009

5| Page

Type of Mobile Video Services

Mobile Video Games and Animation: Mobile video games are in for last few years and are very famous among youth. Since memory has not been a problem for mobile storage, these games and animations can be downloaded and saved in the disk and can be played with fast speeds.

Mobile TV: The concept of Mobile TV has already been materialized and almost all operators from private players like Tata Indicom, Tata Docomo, Reliance, Airtel, Vodafone, Idea to PSU players BNSL and MTNL are engaged in the price war for subscription charges. Apart from several live channels, almost all operators provide cloud based on demand video service too. As per the study done by ABI Research, mobile TV services will attract more than 500 mn users by 2013.

Mobile Internet Video: Vuclip has started its first mobile movie portal in India in Nov 11 where in around 10,000 movie clips can be accessed in 13 Indian languages. Going to buzz in next 3-4 years with immense opportunities.

Mobile video message and Video Email: Mobile VOIP and video email are mainly used for business communication and increasingly finding space for young CXOs. It helps in avoiding the text message and you can record the message in your own voice and can email to the concerned person. This increases the effectiveness of communication channels.

Business Oriented Mobile Video Services: These services are availed by business organizations for their reliable communication and enhanced operations:

Mobile Video Conferencing: With high quality and more powerful and less expensive techniques like browser based applications mobile video conferencing is becoming an attractive business tool. Apart from specialized software and compatible hardware needs, web oriented is also keeping pace and is bridging the gap between web based and application
6| Page

based mobile video conferencing. With moving workstations, growing offshore businesses in India and many conglomerates eyeing this market, mobile video conferencing is allowing the backbone of mobile business communications. Virgin Mobile has already launched the mobile HD video conferencing service which is capable of reducing 20% of the travel cost of business. Sensing the potential business opportunities in India the company has further planned to open 10 regional offices in the country which will further stimulate other players to enter this business.

Mobile Video Advertising: Most of the video advertising agencies are closely monitoring this vertical and are conducting intense market research to know about consumer preference about video advertising on their mobile. In a recent survey conducted by market research firm Synovate among Asians including Indian showed that most of the users are fed up of TV ads but would love to receive such ads on their mobiles. Almost 37% of respondents showed interest even in answering to such advertisements in case they get some incentives. In a time where TRIA is tightening screws for SMS based marketing, video marketing can be a moving step for advertising companies.

Video Training: Companies are slowly engaged in imparting mobile video training to their employees saving the high equipment cost incurred in training and knowledge sharing programmes. Though its in very initial stage but will keep the pace in the coming years specially for the training sessions involving few people.

Mobile Video Projection: Spice mobiles have recently launched its mobile handset with video projection. Its model M9000 has in built projector which can be handy for presentations, movies and images.

7| Page

Major Mobile Video Service Operators in India: Tabular View

Video search and play VuClip platform

Partnership with Times Audience Network and others

DigiVive

--

Currently trying to establish a base within Indian telcos

YouTube

Video & Live Streaming

Partnership with IPL and Bollywood Movie Producers

Comparison of 30 global players based on their service

Source: Analysys Mason, Company Website

SWOT Analysis of Mobile Video Service in India

9| Page

Strength

Weakness

High penetration of Internet broadband and smart phones High bargaining power of viewers and intense competition benefiting customers These services are availed on a single device i.e. smart phone(many to one mapping w.r.t. the old one to one service models) Opportunities

Smart phones and mobile video adaption still in nascent state in India. Unavailability of spectrum and poor bandwidth to ensure smooth service High cost of mobile video services almost unaffordable for rural users

Threats

Opening Revenue strings from auctioning, Online broadcasting rights for mobile video content live or recorded e.g. for IPL(Indian Premier League),Music Concert etc Rolling out of 4G services across India in the future Growth of rural subscriber base( As on 31st March 2010, the Wireless rural market has reached the 190.88 million mark) Use of these services for healthcare, education and information purpose specially in sub-urban and rural areas

Poor implication in the chain of providing services e.g. poor video service in case of 3G and technical glitches Network Capacity Issues: Due to which its been feared that Video (mobile TV subscription on dongles and handsets) will only contribute to about 1% of the mobile data revenues by 2015. Declining ARPU(Average Revenue Per User) of most telcos for voice based services Scam threat as was in 2G

Future Prospects

10 | P a g e

Technology advancement: With the introduction of 3G and MNP in 2011 and advent of more advanced technologies like 4G by 2012 will further enable easy and fast access to mobile video facilities as 4G offers the bandwidth of 100 MB comparing to 2 MB in 3G.This will pave the way for mobile Video Medias to become handy for communication.

National Wireless Broadband project and Telecom Exit Policy: Indian department of Telecommunications soon is going to instantiate the biding process for licenses in 22 circles from fixed line players, mobile operators and ISPs for National Wireless Broadband project. The step is very crucial as this will increase the wireless broadband coverage through mobile in sub urban and rural areas with a target of reaching to 140 mn households by 2014. This is going to help Govts plans pertaining to education, medical treatment and e-governance services .DOT is also working on telecom exit policy to avoid the chances of any scam in the auction and allocation of licenses.

Entry of Foreign Players: The market dynamics in the future would become more complex as foreign players like Qualcomm, Ericsson ,Augere, Nokia Siemens Networks, Qualcomm, ZTE, Huawei, Samsung, Alcatel-Lucent, Tekelec and Verint Systems are also going to bid for wireless broadband licenses. This will definitely alter the complete ecosystem but certainly benefitting Indian Customers. Operating system players like Google has started enabling Android OS compatible to the future technologies. Similarly, Mobile manufacturers are launching 3G powered smart phones at low price to reach to wider mass.

Conclusion
11 | P a g e

With technological developments like 4G, growth in MNP numbers and more Value added services; auctioning of 4G, mobile TV broadcasting rights and other video services the future seems bright for mobile video services in India. There are challenges like decreasing ARPUs for the operators, levy imposed in the form of License Fees, Spectrum Fees, and other Regulatory Charges; threat of scam as was in the spectrum allocation of 2G adds to the woe. But if DOT (Department of telecommunications) and TRAI do a fair job in controlling the related matters then the smooth regulation will help reach services to the customers. The world of devices is converging and is slowly embarked upon mobile handsets for all networking and entertainment needs. So Mobile Video services are the needs of the hour in India will revolutionize the way a mobile handset can be used.

12 | P a g e

References

http://www.scribd.com/doc/37635953/The-Mobile-Revolution http://www.themobileindian.com http://www.odiadiary.com http://www.InMobi.com/research http://www.trai.gov.in http:// www.pgportal.gov.in http://www.iamai.in http:// www.pwc.com/india http://www.researchandmarkets.com http://www.portioresearch.com http:// www.globalequations.com

13 | P a g e