It was interesting to see how things have changed in last 4-5 years. When BusinessWeek ran this hugely popular post in 2005, blogs were started getting enough attention globally. We had some of the finest minds in blog world, like Robert Scoble writing on technology evangelism, first for Microsoft and then for RackSpace. Then how can we miss Dave Winer, who created the idea of weblogs. But despite getting initial momentum, many of us in Telecom fraternity will agree that, over the time, blogs have lost enough steam to be considered as a killer tool in marketing- at least in Telecom India the truth is nakedly vivid.

Recently, while I was following TataDoCoMo on Twitter happily, a curious thought came to my mind; let’s check how Internet savvy the Telecom Operators in India are. And to my disappointment, none of them (with exception of Tata DoCoMo overall & Vodafone-Essar on Facebook) are actively branding their products or brand with Web2.0 tools, such as Twitter, Facebook & Blogs. Why are telcos averse of using Web2.0 tools for promoting brand on Internet? What are the new avenues to interact with customers for them? Why are they relying too much on traditional marketing tools while ignoring the power of Web2.0 platform?

David Kline, a US expert on corporate intellectual property strategy, describes a brand in today’s blog-enabled world as “not something you buy so much as something you participate in”. In his analytical book Blog!, Kline divides the marketing approach of a corporate blog into a two stage process: mindshare, then walletshare. “First achieve thought leadership and credibility on the issues of most concern to potential customers.” This, he says, will then convert into sales. “Community first, then commerce.” But what is happening around is exactly opposite of it; building commerce first and community later. How long will this approach hold bastion to thrive?  We have already seen enough fragmentation of telecom market, then why telcos aren’t concentrating on participatory marketing first before doing commerce?

Some interesting services, which came to my notice, while visiting the web pages of few Indian Telcos were DoCoMo’s ‘Saving Calculator’ and Reliance’s ‘Find Coverage in Your Area’. But then how do you communicate these services to your customers, existing as well as prospective? You will see the difference, if you could share it with all. And despite the fact that you have all Web2.0 tools in hand, very little had been exploited for real use. Even Airtel, India’s No.1 Telecom Operator, doesn’t recognize the power of Web2.0 branding? I felt, Airtel is the least Internet ready brand, with no presence on Twitter/Facebook and complete absence of Blogging profile. This is despite fact that it provides some of the best VAS, like Twitter updates through mobile sms or even promoting Telecom Innovation through ‘Innovation fund’. If you are curious enough to peep how some of top telcos are branding it on twitter, then see the twitter pages of Idea (Doesn’t look like an official account), Aircel & Airtel. Others like Vodafone-Essar & Relinace don’t even hold profiles. Same is true for Facebook pages, where DoCoMo scores high enough followed by Vodafone-Essar. Coming to social bookmarks & email subscription, Tata-DoCoMo again scores high against all other telecom brand in India. Perhaps, that makes me say; Tata-DoCoMo is the most Internet Ready Telecom Brand among all Telecom Operators in India.

When you look on global scale, the same applies for global players. No one has quite understood the power of blogs, like Google or Amazon have. The following peace from ‘Global Telecom Business’ will explain the picture clearly:

Verizon takes the lead, with its Social Media site, containing five regularly updated blogs. The company also has a wide presence on Twitter, Facebook and YouTube. Its blogs contain a great deal of industry information, as well as productivity expertise for using its products and services, for its business clients. AT&T by contrast clearly sees blogging purely as a consumer tool. Its sole blog is called Calm, cool and collected, and has the tagline ‘brought to you by AT&T and some of its real moms (and dads)’. And that’s pretty much it. For instance, while Vodafone, Telefónica O2 and Deutsche Telekom/T-Mobile all make use of Twitter and Facebook, they all lack any sort of blogging presence.

But why are they not branding through blogs? As rightly said, social networking, which for most businesses primarily means Twitter, Facebook, YouTube and MySpace, works well alongside blogging, especially for promoting blogs, but isn’t a substitute for it. Can we re-make blogs as mainstream tool for branding & marketing in telecom?

Answer lies in reluctance of accepting new ideas on e-marketing. Power of blogs lies in its ability to constantly update subscribers of new developments. Blogs are ever refreshing and constantly updated. But then who has time to update and read it frequently? Should we be using blogs for ‘Commercial Promotion (Commercial Pollution)‘? Are the businesses enough passionate about the subject of ‘Participatory marketing’? If you know answers of these, you have understood the power of blogs in establishing it as mainstream tool in marketing & branding. I have even seen, some of TV commercials of DoCoMo, being devised by subscribers. That’s exactly the way Telecom 2.0 will shape in coming years. Participatory marketing is the keyword of next decade and you have to adapt to choices of consumers fast.

But as I said, blogs are little understood and vastly misunderstood. We could often think of promoting different schemes via blogs, but never understand it as medium to establish a rapport with customers. Let’s not pollute the ideas of blogging for commercial branding only, but as a tool to interact with customer in very ideas of ‘Participatory Marketing’.  Telefónica O2 has recently shown us the way, as said in ‘Global Telecom Business’:

In the telecommunications marketplace, perhaps the award for bravery should go to Telefónica O2.It’s gone one step further than allowing employees freedom to comment on the company; it is handing over control of its marketing to its customers. In November 2009 it launched a subsidiary called Giff Gaff, which calls itself the people-powered network. Like Blyk — which ceased its MVNO operations in mid-2009, preferring to license its ideas to existing operators — the network is relying on “buzz” from its customers, otherwise called referrals, to bring in new customers

The Arena is still open for experiments!

The latest Internet & Mobile Association of India (IAMAI) report on Mobile Internet in India   shows that India had 57 million Internet users as on Sep-2008; the numbers are likely to grow multifold-thanks to Technology, Content & Devices convergence.  But real concerns in widespread adaptation of Internet got little attention in this well documented report.

Before we discuss the report in deep, let’s define the term ‘Mobile Internet’ first. According to the report:

Mobile Internet is the system of interconnected network which is accessed through mobile devices such as a cell phone, PDA or other portable gadgets or browsing a mobile network such as Wi-Fi.

The point is, access to Internet doesn’t require desktop or fixed landline connection. Mobile Internet is also referred as ‘Internet on Move’ in some jargons.

While world is all talking about Google’s new Superphone ‘NexusOne’, India has yet to see the power of smartphones. The power of Qualcomm’s 1Ghz processor has certainly fueled the competition in devices segment, India is far behind the limelight. Though, the Internet usage in India is on rise, from 5million in 2000 to 57million in 2008, the growth rate has been reduced over years reaching it to mere 25% in 2008, compared to earlier years (See Graph Below).  According to I-Cube (Internet in India), IMRB syndication, out of 17.9 million Internet users surveyed in 30 cities, 57% relied on Public Internet Cafes, followed by Office (37%) & home (33%) users. Around 4% of users access Internet via Cellphones and 0.2% users use Wi-Fi hotspots to connect their portable devices to Internet. Certainly, figures are impressive!

With increasing penetration of Laptops & Netbooks, we have seen devices has played greater role in growth of Internet users. But according to the report, there are two main factors who contributed towards growth as well, namely Technology & Content. Without Technologies such as Fixed & Mobile Broadband, 3G, WiMAX or contents like m-commerce and social networking, it would be wrong to attribute growth to mere devices like iPhones or Android based smartphones. Although, India has yet to see e-reader launch, in coming years, devices will hold the key of differentiation in Mobile Internet space in India.

Some other highlights of reports (Download it at Mobile Internet In India) are:

• Around 60% of Mobile Internet users in India access Internet for Online communication (email, chat etc) followed by information search (23%), online services (8%) & Entertainment (7%).
• Around 70% of Mobile Internet users fall in 18-35 age group, followed by other users like Older men (10%), working women (7%) and non-working women (3%).
• There are 471million mobile users in India and around 27% of these users are capable of accessing Internet, totaling it to 127million. But out of these 127million Internet users, there are only 2million active Mobile Internet users at present, which is in fact quite low.
• With the launch of EVDO based data cards by Reliance & Tata, we will see rise in Data card users. The number is likely to grow to 2.1million in 2010-11, from existing 1.2million (2009-10).

So blame it on DoT for its inability to free up necessary spectrum for NGN Mobile Broadband Technologies like 3G /BWA or on Telcos for keeping Internet access data plans costlier, there is no simple solution to drive Internet growth further. There are some other drivers for Mobile Internet usage in India which will play important role, says report. With impending 3G/BWA auction in India, we will get to see Mobile Internet usage on rise by the end of 2010, when 3G will actually get deployed across India. Some other factors like Technology R&D, collaboration with foreign players (Tata-DoCoMo etc) along with technological aspect like improvement in Speed, affordable Data/Broadband tariff plans and cheaper devices, will also have significant role to play in coming years.

If all goes well, the day is not far, when we will see Quadruple Play- Voice, Data, Video & Mobility, powering the ideas of seamless connectivity and ubiquitous information sharing in India. Certainly, as said before, Internet has major role to play in transforming India towards a knowledge society. And it has become clear in last couple of years that it’s possible to carry Internet to masses, bypassing Desktop/PC path. Mobile Internet has to rewrite the growth story yet.

(This Broadband Report Blog was earlier posted but updated to suit new Telecomblogs Page)

As we are reaching to end of year 2009, where we are also celebrating a decade of National Telecom Policy-99, which paved ways for phenomenal telecom growth in India, Telecomblogs thought of taking a overview of India’s Broadband Growth, in a decade’s span. And while I was preparing to write, it was becoming evident that on one side when we weigh Mobile Penetration as benchmark; broadband penetration fades distant away with insignificant record of growth in last decade.

When I mentioned NTP-99, two thoughts just came to my mind. Should DoT possibly think of revising a decade old policy on telecom reforms? And if there isn’t anything on revision of NTP-99, can we have a brand new Broadband Vision -2020 policy, for next decade, based on few ideas published on SiliconIndia?  Now coming back to our present topic of discussion, latest Pyramid Research report says, India had 0% per-population broadband subscribers in 2008 and number grew to 1% in 2009 (which is actually <1%). While as per TRAI’s report on broadband stats, India has 7.5 million Broadband subscribers at the end of Nov-09. Though we have added approx 2.1 million subscribers (Dec08-Nov09) in span of one year, if you compare it with avg monthly rate of mobile subscriber addition ( 8 million/month), it’s insignificant. Broadband growth has become more than a blot is shining Telecom Growth story.

Now let’s go back to an very important ITU report on, Birth of Broadband. The chart shown below gives us clear idea of Global State of Broadband during 1995-2002, the Web1.0 era, when Google was just 3 yrs old and Facebook, MySpace was yet to born.  Till 1998, some 12 years back, we had only 0.3% global broadband subscribers and number grew to 10% within span of four years. Though, there is significant growth in Internet usage globally, India was way behind.

As per TRAI’s Broadband Consultation Paper (2003), which is oldest consultation paper available on ‘Broadband Growth’, despite announcement of new ISP policy in 1998, India continued to show dismal Internet usage pattern. From growth rate of 55% in early 2000, growth was just few percent in mid 2003, in span of four years. Though, there’s no word on such negative trend of Internet usage (See Image Below), possible main causes could be one of following:

•           High Price of Broadband. (Cost was 60 times higher than South Korea’s broadband subscription monthly fee)

•           High cost of Last Mile Infrastructure (Copper etc).

•           Lack of content and applications in regional languages.

Moving ahead with TRAI’s Recommendation on Internet & Broadband (2004), India had 0.4 Internet connections and 0.02 broadband connections per 100, while Korea & China stood at 25 & 1.4 respectively.  While India was adding 0.28 million/month mobile subscribers in 2002 and the number grew 2 million/month, broadband adaptation hasn’t pick up to any reasonable level. But why Broadband growth is significant? Why we are stressing on Broadband?

ITU’s paper on ‘Birth of Broadband’ states the importance of Broadband in one liner:

“Broadband is particular promise is in its capacity to enable multiple applications   over a single network, and the related economic gains- meaning greater access at lower cost”

Even TRAI emphasizes this fact clearly, stating that “Internet and Broadband roll out has the ability to have further reaching effects than the reforms in telephony”. It also stresses on universally accepted phenomenon; widespread adaptation of broadband accelerates GDP growth. It further adds:

“In 2002, IT, driven primarily by broadband rollout, accounted for 50% of South Korea’s GDP growth rate.2 An analysis by the Confederation of Indian Industry National Broadband Economy Committee shows that the total present value (2004) of benefit to  the Indian economy due to growth from broadband is expected to be US$90 billion for the years 2010 – 2020, with an 11% additional growth in labor productivity. This activity is expected to launch new business lines and increased efficiency in existing businesses, leading to direct employment of 1.8 million and total employment of 62 million by 2020. These estimates are based on CII’s goals of achieving at least 10 million subscribers by 2010 and 32 – 39 million by 2020.”

But then why growth of Broadband is slowed down? Why it couldn’t achieve its target? According to CII, at least US $2.6 billion investment by 2010 and US $5.35 billion by 2020, will be needed to achieve the growth, which might have fallen short. This investment is needed primarily in field of urban networks, domestic and international backhaul, content delivery and rural build out process, which is itself a formidable task. There are many hurdles unattended. Despite some known issues, as mentioned earlier, there’s little work carried out.

Table here shows,  ‘Broadband Growth’ in next few years. India had < 50k broadband subscribers in year 2004. In Mar-2007, the figure reached to 2.34 million, amounting to 50 times growth in broadband subscriber base within span of three years. Now, as per TRAI’s latest stats, this subscriber based reached to almost double within next one and half year to 5.4 million by end of Dec-08. And as said earlier we have 7.5 million subscriber using Broadband connections (> 256kbps).

Now coming back to TRAI’s Recommendations on Broadband (2007), earlier predicted Broadband subscriber growth has already some missed targets. We have yet to achieve 9 million broadband sub base mark, which could have been achieved in 2007. Now, let’s not talk about overestimated target of achieving 20 million Broadband subscribers in next one year. Telecomblogs believe that, we are going to miss one more target once again.

Certainly there are few policy issues. Cost of a broadband connection deters prospective subscribers from buying new connections. More or less Internet usage is still limited to Metros and Tier-I cities and digital divide is growing. Though Internet access via mobile is gaining momentum, achieving broadband speed over existing 2G/2.5G/2.75G networks isn’t possible. We will have to wait till 3G/BWA spectrum auction happens to achieve mobile broadband speed on move.

Issues pertaining to Broadband aren’t something which can’t be tackles systematically. DoT and government has to play central role in encouraging Internet Infra roll-out and filling up digital divide. Highest broadband speed achieved in India until now is 16Mbps, which is significant, but there’s little awareness over power of Internet connection among people. Certainly, we are still far away from becoming a Knowledge Society and Broadband adaptation has central role to play in it.

Wish you a very Happy New Year Ahead!

Recently, Bharti Airtel, released India’s First Mobile Phone Usage Survey ‘Airtel Mobitude 2009′. This study shows the preference and choice of over 116 million mobile users located across India. The report is based on the compilation of data that captures all downloaded content by an Airtel Mobile user during 2009.

The survey was based on different parameters, which at the end reflects interesting choices and preferences of ‘Mobile India’, says the report. According to Mr. Atul Bindal, President, Mobile Service India, Bharti Airtel Ltd, “Spread across 116 million users, Airtel is best positioned to highlight preference and choice of India.” He also added that, Airtel’s consumer usage analysis has thrown up very interesting results that truly highlight what an Indian prefers across the length and breadth of India.

Some of the highlights of the survey are:

• Study based on over 220 million downloads on mobile across music, images and games over billions of SMSs during the year have revealed that users send maximum messages on the New Year followed by Diwali, Dusshera and interestingly Friendship Day
• High in humor quotient, Jab Dekho Phone Kar Dete Ho, an April Fool Joke is the most downloaded music ahead of Jai Ho of Slumdog Millionaire
• Katrina and Aamir are the most downloaded Bollywood celebrities ahead of Kareena and Salman
• Sachin Tendulkar is the most popular sports stars ahead of MS Dhoni.

What does the survey signify? There are little details available and those available are much obvious to take note of. Like users send maximum sms on New Year eve or even Sachin Tendulkar is more popular than Dhoni. Some other details in music section also throws little insight on user download patterns, though report highlights the fact that regional music is equally popular to Bollywood songs. But if you ask Telecomblogs, it’s just old wine in new bottle show by Airtel. Such reports are generated by Airtel every year across India, had they released mobile data usage pattern or even rural/urban mobile usage pattern, report would be more useful. Till more details are available, we rate ‘Airtel Mobitude’ is quite ordinary in present context.

The Smartphone wave will continue to dominate the next few years, predominantly in emerging markets, says Pyramid Research, in its latest report on ‘Global Smartphone Forecast’. While it focuses on operator and vendor strategies, along with cutthroat competition among various mobile OS platforms, there are little surprises in the report. The report also investigate the detail state of Smartphone market in eight crucial market, namely China, India, Brazil, Turkey, Russia, US, UK & Nigeria etc.

Some of the highlights of the reports are:

• China will become the biggest Smartphone market overtaking US in 2010, while other markets like Brazil, India, and Nigeria will record compound annual growth rates above 30%, through 2014.
• There lies huge opportunity in Smartphone segment, with unit sale may cross figure of 1.8Bn by end of 2014.
• As operators’ strategies vary across countries, so too do the market shares of operating systems. Because of local conditions, the BlackBerry has a strong market position in India, while Linux-based systems do much better in China.
• Operator’s strategies differ a lot based on method of payment; postpaid and prepaid. In dominantly postpaid markets, where there’s no dearth of subsidies which produces high competition among operators, vendors like AT & T are offering subsidies on handsets along with attractive data plans to woo customers.
• While in predominantly prepaid markets, such as Russia, operators like MTS are focusing more on value added services (VAS), by offering cost proposition over the content offered. It would be really interesting to see how Indian market players will come up with innovative VAS, to improve Smartphone penetration , which is dominated by prepaid category of subscribers.

You will find some other interesting questions answered in report like, how Smartphone market adaptation will unfold in next five years? What are the vendor strategies which will pay the returns? How Smartphone market will look like in 2014? Etc. As Nokia continued to show disappointing results in Smartphone segment, while Apple became the most profitable handset maker recently, the Smartphone segment shows interesting trends. Though handset market shows sign of recovery, there’s a lot to be unfolded in coming years. Market is still open for top spot!