Financial Daily from THE HINDU group of publications
Thursday, Mar 16, 2006
Financial Daily from THE HINDU group of publications Thursday, Mar 16, 2006 |
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Info-Tech
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Convergence Industry & Economy - Telecommunications A fistful of choices Vipin V. Nair
Rapid advancements have made the mobile phone a virtual pocket-sized computer.
Many rubber traders in Kerala these days receive SMSs on their mobile phones throughout the day. The SMSs are from a company in Mumbai, which keeps them updated on the ups and downs in rubber futures. Technology has indeed touched the grassroots. What has aided this level of technology penetration across India is the explosive growth of the telecom sector. Surviving the teething troubles in the late 1990s, the GSM-based cellular phones took off and spread exponentially. What was perceived as a rich man's gizmo a decade ago, the mobile phone is a common man's tool today. India's GSM-based cellular phone subscriber-base is over 65 million. Every month, more than three million new subscribers are added, making India one of the fastest growing markets for cellular telephony. Alongside, CDMA-based cellular networks are adding over a million subscribers. Phone charges are plummeting to newer lows. With number portability, which lets users retain phone numbers even when they change the service provider, set to become a reality soon, plain-vanilla services will increasingly get commoditised; the only means to retain a customer would be value-added services. Today all service providers offer a wide range of services. The drastic fall in prices of mobile handsets is aiding this growth. Today a feature-rich mobile phone is available for Rs 6,000. Services such as GPRS (general packet radio service) and EDGE (enhanced data rates for global evolution) are available even in small towns. Users can send and receive photos and video clips through the mobile phone. You can also surf the Internet and there are sites designed specially for the mobile phone. The rapid advancements in digital technology have made the mobile phone a virtual pocket-sized computer. Today your phone is a camera, music player and a personal digital assistant (PDA), all combined together. The mobile phone is also used to check bank balances and soon, they can also be used like a credit or debit card. Mobile gaming is another area witnessing quick growth in India. The country's gaming market was estimated to be around $26 million by end-2004 and by 2009, this is expected to touch $350 million. What will give further impetus is the advent of 3G-based networks which offer higher bandwidth for faster Internet and video downloads. 3G will also help operators cut costs and connect rural areas. The image of a farmer or a rustic old man/woman speaking on a mobile phone is almost a clichéd communication to suggest that India has changed. Perhaps a more befitting image of India today would be that of a farmer downloading data on his GPRS phone.
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