I’ve seen the transformation of India from a very closed nation to one of the fastest developing countries in the world. Some trends and observations.
Mobile Phones Market
Urban Households: 65 million families, Monthly Income: $200
Rural Households: 135 million families, Monthly Income: $60-$100
There are only 2-3 million households with Monthly Income > $1000
In 1994, there were only 7 million mobile phones in India. This figure has grown to 150 million today which effectively means adding 6 million lines/month and at 70 million lines/year, India is the largest growing mobile phone market in the world.
The capital and operational expenses used to be $1000 per line in 1994. Yes, only the elite could afford this. Today, the figure stands at $100 with a mobile phone available upwards of $40.
If the present growth continues, we might reach a figure of 200 to 250 million users by 2010. The present average revenue for the cellular service providers stands at $7 per month per user. The next big market for these companies lies in the rural market where revenue can at the max be $2 per month. Nowhere in the world do companies make money at less than $15 per month per user.
The primary reason for having been able to provide service at such low price points is due to the innovations in technology and business model. Bharti Enterprise (AirTel) for example outsources everything except the marketing and customer management. IBM signed a 10 year long $750 million deal with Bharti to manage its infrastructure (servers, PCs, network equipment etc) whereas Ericsson through a $250 million deal manages its base stations/towers etc.
Digital Media
From 10 million TV sets in 1992 we jumped to 100 million sets in 1995. This change was because of 2 reasons
- Black and White sets were introduced at $50.Not very cheap. But this gave the breadth and then the volume for the proliferation of TV sets.
- Cable TV was introduced at a measely sum of $2 per month. It became very difficult for the service providers to manage their capital and operational expenses. This actually jump started the Indian media content industry (not referring to Bollywood) which was the primary cause of the proliferation
Others
- Fibre Optic:Tyco and Flak own 60% of underwater fibre optic cables in the world. With hardly any usage of these cables, these companies were bleeding waiting for companies to buy their underwater network. Indian telcos recognised this opportunity and bought the infrastructure. Bandwidth would be provided as and when needed. Wise investment.
- Airlines Industry: A ticket from Chennai to Delhi that used to cost $250 two years back, now costs just $35. Ok this has more to do with the Government intervention in the airlines industry making it more practical and more affordable.
- Auto Sector: Indian companies like Tata now develop 99% of their technology in India. India is now hailed as the auto component capital of the world.
- IT sector: Crossed $28 billion last year is expected to reach $50 billion by 2008.
September 2, 2006 at 2:41 pm |
bitch. you just transcribed that guys speech.
September 2, 2006 at 4:14 pm |
which is why thr’s a reference, bitch. whrever quotes/statements are used, they have been quoted. this blog’s purpose is to keep each other updated on the current affairs and sharing articles that are worth a read.
which reminds me, pls approve my comment on ur blog. its been lying ard for moderation for quite some time.