Why decreasing SMS usage is good sign for Telecom Operators
According to TRAI, the average number of SMSes that mobile users sent has fallen by 7% for GSM and 6% for CDMA operators during the last quarter. An average GSM user sent about 26 SMSes a month in the quarter ended March 08, compared to 28 SMSes a month in the previous quarter (Oct-Dec 07) – ET
Infact, decreasing SMS usage is giving in to increasing data usage (493 minutes per month per month per customer in Jan- March 08 quarter, against a constant 463 minutes for about six months prior to that) – and that shows up in the increased ARPU for GSM players (not CDMA).
This is surely a good sign that Indian mobile users are consuming more voice (and less text) and data – and that will open up new opportunities for VAS content players.
Rural IVR is the next big opportunity and that’s where a lot of action will occur.
As far as VAS is concerned, operators will have to get easy on rev sharing with VAS content creators (currently, operators take 70% of the revenue, leaving no room for creators to experiment/innovate), if they want to increase the pie (or else somebody else will!)
What’s your opinion?
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About the author - Ashish Sinha is a Startup Mentor/Product Strategy Coach, and the founder/chief editor of pluGGd.in.
He has launched/managed couple of products (consumer as well as enterprise) in US and India, and now consults with startups/small businesses on their product/media strategy. He can be reached at: ashish (at) pluGGd.in [+91 98452 06443]
[...] though the usage of sms is declining in India, it’s still considered the most important usage of cell phone [...]
Hey Ashish,
You mention – “Rural IVR is the next big opportunity and that’s where a lot of action will occur.”
could you elaborate on this a little.
thanks
shitij
hey shitij : have a look at this: http://www.pluggd.in/2007/12/future-of-mobile-vas-in-india-market-research-report
[...] Decreasing SMS usage is giving in to increasing data usage (493 minutes per month per month per customer in Jan- March 08 quarter, against a constant 463 minutes for about six months prior to that) – source [...]