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CHAPTER 1 ABSTRACT

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A study of Mobile Platform Awareness & Adoption by Enterprises is imperative at a time when there is considerable dearth of information on mobile data services platforms in India and on how these platforms can be leveraged by businesses for their benefit. This is a comprehensive report benchmarking the present state of awareness, use and purpose of use of mobile platform for customer engagement.

Thus far, the mobile industry has focused on aggregating numbers for mobile usage. While Mobile Value Added Services (MVAS) provided consumers with information, entertainment and utility services and generated incremental revenues for operators, the time is now ripe to move beyond MVAS and focus on enterprise adoption of mobile technologies for greater business productivity. A robust and proven mobile data services platform that can act as a bridge between operators and enterprises is needed. Such a platform can drive enterprise adoption of mobiles and open up new revenue streams for operators.

This report is aimed to understand the current state of mobile engagement platform awareness and adoption by enterprises. This study hopes to be a bellwether for the industry, facilitating on one hand, platform providers to recognize the state of the industry, and enterprises to realize the mobility tools available at their disposal for meeting their immediate and latent needs on the other.

The highlight of this report is a sector wise analysis of the state of the mobile platform awareness and adoption. I hope the findings of this study will be useful to all those who are concerned and connected with this company and with the Indian mobile industry.

THE SEARCH AND THE FIND


33% of m-Engagement platform customers are businesses from tier 2 and smaller cities. 50% of these business users find such mobile engagement platforms through online search and this number is increasing. BFSI vertical constitutes the largest consumer of m-Engagement at 19%, followed by software developers, who integrate these services into enterprise applications. Media and entertainment and Education follow. Education and real estate were the most hit sectors due to NCPR. Promotional activities using messaging reduced drastically post NCPR. MIT School of Management Page 2

CHAPTER 2 COMPANY PROFILE & OFFERINGS

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COMPANY PROFILE
IMImobile is the leading global specialist provider of cloud-based mobile data infrastructure and mobile technology. IMImobile is a leading global provider of end-to-end mobile engagement software and solutions to mobile operators, enterprises and media companies. Headquartered in Hyderabad, India, we have offices in London, Dubai, Athens, Mumbai, Delhi, Colombo and Dhaka and employ nearly 650 people worldwide. IMImobile is the winner of more than 20 prestigious awards including Cloud Africa Award and World Vendor Award. With a global presence across Asia, Europe, America and Middle East, they are your perfect partner to capitalize on the ubiquity of mobile technologies by driving customer acquisition and retention, increasing employee productivity and driving new channels for revenue.

IMImobile is specialized in providing next generation mobile internet services and enterprise grade CRM solutions. They have extensive experience in designing and building mobile portals as well as mobile and tablet applications that deliver an outstanding user experience. Furthermore, IMImobile provides mobile billing and payment, bulk messaging, content management, mobile advertising, storefront, social media and digital music solutions.

Today, IMImobile is working with over 100 Blue-chip companies and its services reach over 1.2 billion people & 96 operators in over 73 countries worldwide. Their operator customers include Aircel, Airtel, BSNL, Meteor, Mobitel, MTN, Tata, Telefonica, Virgin Mobile and Vodafone. Their media and enterprise customers include BBC, Star TV, Reuters, Yahoo, Google, EMI Music, Universal Music, Sony and Warner Music, The AA, Centrica and E-ON.

WHAT THEY DO
HELP YOU MAXIMISE THE POTENTIAL OF MOBILE.

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They help their customers to use: Mobile as CRM channel - acquire, service, engage and retain customers across mobile and social channels. Mobile as revenue channel - generate revenue by transacting with their customers through the mobile channel. Mobile as productivity tool - mobilise business applications and improve employee productivity through mobile solutions.

THEIR VISION & VALUES


In todays fast-moving and competitive market, declining revenues and constant pressure of innovation, we see ourselves as your trusted partner for mobile data infrastructure solutions. We believe that personalized customer engagements with an element of value exchange are the basis for the most effective mobile solutions. Only an unconstrained, democratic platform hosted in the cloud can unleash the creativity and innovation within the mobile partner ecosystem. Our vision drives the business forward; our values ensure we deliver a first-class service. Our brand values are the pillars of our success and we live by them day to day.

Its corporate identity unites everyone at IMImobile to deliver the best service possible. IMImobile operate in multiple markets, delivering customized communication solutions to help their clients to grow their business. To achieve this on a day-to-day basis company created brand values. These brand values are at the foundation of their success today and they are committed to living these values to ensure the success in the future. IMImobiles seven core brand values are: Innovate, Engage, Connect, Deliver, Collaborate, Learn & Motivate

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THEIR HISTORY
Originally, the company was established as IMISoftware in 1998 to develop software for power transmission and telecom towers. It was the year 1999 when Vishwanath Alluri and Shyam Bhat, the two founders of IMImobile, saw an opportunity to offer a richer set of mobile data services in a mobile landscape dominated by voice and SMS.

With entrepreneurial vision Vish and Shyam realised that not only would customers want a full range of mobile services on their mobile devices, but that a broader range of media and enterprises would also want to get involved to reach out to their customers. In 2007, the original business of IMISoftware was sold and the company was renamed IMImobile.

Today the awarded DaVinci Evolved Service Platform, developed by IMImobile, is deeply embedded in the business processes of over 100 mobile operators and blue chip enterprise customers worldwide. The platform represents 600 man-years of investment and development and reaches over 1.2 billion mobile subscribers worldwide.

BOARD OF DIRECTORS
Vishwanath Alluri
Founder & Executive Chairman Vish founded IMImobile in 1999 with a vision of harnessing the intellectual resources of India to develop an IPR centric technology company. While recognising the potential of the rapidly evolving mobile data space, Vish was aware that fast growth needed to keep pace with ever changing technology. Vish therefore set out to build a company which would liberate mobile operators and media companies of technological complexities thus enabling them to realize the huge revenue potential. A pioneer of the 'managed service model', IMImobile delivers turnkey technology solutions allowing customers to focus on their core business development. Today IMImobile has become one of the leading players in the MIT School of Management Page 6

Mobile Value-Added Services market. Vish has extensive experience in the technology domain and was previously involved in setting up an Indian hi-tech consumer services company in the healthcare sector. Vish is a Chartered Accountant and a Company Secretary.

Shyam Bhat
CTO and Founder Bhat has more than two decades of experience in Engineering and new product developments. He is responsible for the creation of all the engineering and mobile products and platforms. Bhat is an Engineering graduate from the highly prestigious Indian Institute of Technology, Bombay.

Jayesh Patel
Chief Executive Officer Jay has been working with IMImobile since its foundation in 2000 and has helped the company grow internationally from its headquarters in Hyderabad, India. Jay has spent the last 20 years in the media, technology and telecom media sector and was part of the founding team and partner at Spark Ventures, a leading early stage digital media investor. Jay has also held executive positions at BSkyB and UBS Warburg and holds degrees from the LSE and INSEAD.

Amish Jani
Director Amish Jani, a Founder and Managing Director of FirstMark Capital, focuses on software and systems investments in the enterprise, communications and digital media sectors, and serves on FirstMark Capital's Investment Committee. Amish also leads FirstMark's investment strategies for the Indian marketplace. Prior to founding FirstMark Capital, Amish was a Partner with Pequot Ventures. Amish has led and sits on the board of seven FirstMark portfolio companies, including IMImobile, Conductor, Boomi and Lumos Labs. Amish has both a B.S. and an M.B.A. from the Wharton School of Business at the University of Pennsylvania.

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Mohit Bhatnagar
Director Mohit is currently a Managing Director with Sequoia Capital India and serves on the board of Prizm Payments, Comviva, Ujjivan Microfinance, IMImobile, Ideacts, Micromax Mobile & One Assist. Prior to joining Sequoia Capital, Mohit served as the Senior Vice President at Bharti Airtel where he helped scale the business from a few states operation into a leading national wireless carrier. Earlier, Mohit co-founded Bright pod, a wireless start-up in the US, by orchestrating a spin off from Ericsson Mobile Systems. Mohit has received an MBA from UNC Chapel Hill and an MSEE from Virginia Tech.

REGISTERED ADDRESS & VARIOUS BRANCHES


Registered Address: Head Office - Hyderabad (India)
IMImobile Pvt. Ltd Plot No. 770 Road No. 44 Jubilee Hills Hyderabad - 500 033 Phone: +91 40 23555945 Fax: +91 40 23555984

Its Branches:
In APAC region it has branches in New Delhi, Mumbai, Chennai, Kolkata, Dhaka(Bangladesh) and Sri Lanka. In Europe region it has offices in London and High Wycombe. In Middle East & Africa region it has a branch in Dubai. In America it has offices in Atlanta & Panama.

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COMPANY'S OFFERINGS
IMImobile OPENHOUSE unleashes the power of the mobile medium for your business. IMImobile OPENHOUSE is a secure, cloud-based platform that throws open network and web resources. It makes it possible to easily incorporate mobile capabilities into business applications and allows you to develop and launch your own innovative mobile solutions.

BUSINESS APPLICATIONS
I want to interact with my customers
Through our interactive SMS and Voice campaigns and built-in campaign manager, you can promote new products and services, inform loyal customers about special offers and update your employees, all within minutes. We offer two types of interactive services:

SMS broadcast: Communicate with larger audience with our interactive SMS
campaigns. You can use campaigns to promote new products or services, send offers to your loyal customers, share important information with your employees etc. Campaigns are not just for one-way bulk message delivery. A reply path enables your customers to respond back to your communication.

Voice broadcast:

Send voice messages to your customers or build interactive

voice campaigns and run within minutes. Voice broadcast helps your business in setting up interactive campaigns that automates bulk voice calls to mobile/telephone users, playing pre-recorded messages. Campaigns can be scheduled to promote new products or services, send offers to loyal customers, share important information with employees etc

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Excel Plugin for SMS:

Have customer data in Microsoft Excel files?

Download our Excel Plugin and start sending SMS messages right from Excel. Our Plugin allows you to personalize the message for each recipient using data available with the Excel file. You can even schedule the SMS messages to be delivered at a pre-defined date and time.

I want my customers to initiate communication


With this service, customers can ask companies to get in touch with them at little or no cost to themselves. The request from the customer can take different forms.

Missed Call to SMS: Customers can place a missed call to a given number at
no cost to them, and receive an SMS in response. The response SMS may be static or customized to include personal and dynamic content. This service is usually used to capture potential leads when the target audience doesnt have internet access or Smartphones.

Missed Call to Call: Customers can place a missed call to a given number to
receive an immediate call-back. This service is integrated with Virtual IVRs Call Flow Designer for complete automation. This service can be used in cases where the customer needs to go through a validation process, after which the call can be transferred to a customer service representative.

SMS to Call: A keyword like OFFERS is made available through mass media.
Customers can send an SMS with this keyword to a short code or long code to receive a direct call-back. This is a popular method used to capture potential leads and give a call-back immediately once a customer service or sales representative is

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available. Our Several enterprise customers have used this service during launch of a new product or service.

Click to Call:

This service enables regular websites and mobile apps to place

voice calls with the click of a button. A web widget can be downloaded and placed on the website where customers browsing the site can enter their mobile number to receive a call-back. Click-to-call widgets enable real-time voice connections from existing websites without additional costs to the customer, which results in greater conversion rates for businesses.

I want to set up voice applications


Interacting with customers through a large team of customer service representatives consumes many valuable resources and increases costs. Our IVR

service enables automated voice applications so you can connect with your
customers in a cost-effective and convenient way.

I want to know my customers opinion


Our poll engine helps you strengthen your customer engagement strategies. Analyse a wide range of criteria such as customer feedback, opinions on new products and services, gauging changing wants and needs.

A guided wizard-based interface enables you to quickly set up new polls. You will have the flexibility to configure and manage multiple polls and have access to real-time analytics and detailed reports.

Our poll services are channelled through SMS. MIT School of Management Page 11

I want my customers to communicate with me


Inbound messaging lets your customers, prospects and employees communicate with you over SMS and Voice (IVR) for services such as enquiries, appointment requests and more.

You can use inbound messaging to:


Define rules to process incoming voice calls or text messages from your customers Define the routing logic to forward incoming traffic to the right applications for further processing Send out automated confirmation responses once a customers message is received

We offer three services for inbound messaging:


Shortcodes: Shortcodes are special mobile numbers that are short, easy to remember and are a cost-effective way to interact with your customers. Our shortcodes are already integrated with most telecom service providers in India, this means you can reach your customers regardless of which network they use. You can rent a dedicated shortcode for your application or configure keywords on shared shortcodes.

Longcodes: Longcodes are ten-digit virtual mobile numbers that can be used for both SMS and voice communication. Longcodes are globally accessible, which means your customers around the world can now reach you. You can either set up an interactive voice application and make it available on a long code or publish your long code to your customers and interact with them over SMS.

Keywords: Keywords allow your business to establish a cost-effective, two-way SMS communication channel while creating a unique identity for your business. Using keywords, you can run contests, quizzes or polls, solicit customer feedback and run surveys to gauge customer satisfaction.

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CUSTOM SOLUTIONS
Field Force Management
Over 40% of all workforce is mobile. How effectively are you managing your field force? Collecting customer data from the field, inspecting field assets, auditing field operations, booking a new sales order are all tasks that routinely happen in the field, but are largely manual even today.

Our Field Force Management solution powered by OPENHOUSE allows you to automate many of these activities. Our solution enhances the credibility of data collected from the field by geo-tagging and time-stamping the activities, allows new tasks to be assigned to field workers, provides checklists to improve service quality and gives management real time visibility into field activities. Our smartphone application and administration consoles can be quickly customized for your unique needs.

Custom IVR
Are you missing customer calls because your live agents are out of office or busy with other calls? Do you want to empower your customers to service themselves? Our IVR solution can help you do these and more.

Setting up these advanced voice services is quick and easy with OPENHOUSE Cloud IVR and visual call flow designer. Once you have defined your call flow, you can setup an inbound IVR or attach the call flow to an outbound voice campaign. You can send SMS messages from the IVR, integrate with your existing business applications, capture input from customers or even connect them with your call center.

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Loyalty & Rewards


Whether you are a consumer products company or an industrial lubricants business, you need to let your customers know that you value their business. A loyalty program not only drives business growth but also lets you capture rich information about your customers and their buying habits.

Developer Tools
Messaging APIs
Our Messaging APIs help you establish a two-way communication channel with your customers and employees. Messaging APIs have limitless possibilities: from letting customers look up the nearest branch of their bank to enquiring about the status of an online order.

Voice APIs
A one-to-one dialogue often creates more personalized and effective communication. Through our Voice APIs, you can stay connected to your customers whether they use fixed line or mobile networks. Our voice platform is multi-tenant and cloud-based. That means you dont have to worry about renting PRI lines, buying expensiv e equipment or hiring an army of developers to set up your voice application. Just access our platform, use our call-flow designer to create the entire flow of your voice application, and pay only for what you use.

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Social APIs
The true potential of your business will remain unexplored till you leverage the power of social media. Our Social APIs are integrated with Twitter, Facebook, LinkedIn, MySpace, Bebo, Foursquare, Picassa and Flickr. That means, with one set of APIs, you can build applications that interact with all of these services.

Call-flow Designer
Use our call-flow designer to setup the entire flow of your voice application. Once setup, you can make these applications available to your users through outbound calls or publish a number for your users to call in. Built-in DTMF support allows you to setup rich menu-driven applications quickly.

Engaging in a one-to-one dialogue with your customers and personalizing these interactions have never been easier.

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CHAPTER 3
THEORETICAL BACKGROUND OF THE TOPIC

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INTRODUCTION TO THE TOPIC


Topic: A study of Mobile Platform Awareness & Adoption by Enterprises
People have big goals for their company. They want to increase visibility, grow revenues, enhance profitability and explore new business opportunities. For this they have to proactively engage and listen to their customers - monitor employee productivity and stay updated with the latest market trends and opportunities. And what better way than to go mobile.

But why mobile?

Mobile is Masses - reach that no other medium can provide There are going to be more mobile subscribers than people by 2015! Mobile is Ubiquitous - present everywhere, every time And, Mobile is Ease - ease of access

But the path to enterprise mobile solutions is not easy. That's because...

Mobile is also Multiplicity Multiplicity in channels - SMS, MMS, USSD, STK, Voice, Data, Video, Apps Multiplicity in platforms -- Android, iPhone, Blackberry, Windows Mobile, J2ME, Bada and Symbian Multiplicity in protocols -- SMPP, MM7, CIMD, HTTP, Parlay, ParlayX, SS7

That's where service providers like IMImobile come in. Through IMImobile OPENHOUSE, they demystify mobile technologies and power your mobile innovation through open collaboration. They have the right ingredients to mobilize your enterprise solutions.

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Were at the point where mobile phones and apps are an inseparable part of how we live. As we take a gander at the mobile market, its already clear how big the mobile adoption rate is. More than 1 bn smart devices all around, nearly 2 m apps, billions of apps downloaded, high revenues, high demand. People love phones and apps and that love is growing stronger. Enterprises are no different in that regard.

Despite the profits, despite the numbers and despite the benefits, enterprise mobility is still staggering to full adoption, but 2013 shows promise as tablet adoption and shipping is expected to oust laptop sales.

Before we go into the thick of it, employees and businesses agree on one thing. Enterprise apps should function just as well as consumer apps, through elegant design and precise functionality. Just labeling the word, enterprise on the description of an app doesnt cut it.

The second thing to note is the fact that as smartphones and tablets have streamlined into consumer hands, the need for B2B, B2E and B2C mobile relationships is growing every day. From customer support, sale reporting, business planning, strategy meetings, CRM, you name it; enterprises recognize the necessity to augment their business through mobility. The notion of Mobile Business Intelligence isnt new. Its been around for more than a decade. However, until recently, the technology and culture werent yet ready for users to embrace it. In early 2010, few recognized the impact it might have.

However, through the confluence of new technologies (e.g., iPad tablet) and social change, Mobile BI has become mainstreamed. In fact, for some, its the only way they consume Business Intelligence content! In 2012, its impact is now both clear and profound. We see the reach of its impact in various forms.

Now with the benefit of several years of data, there are identifiable trends and an evolution towards a time when Mobile Business Intelligence will simply be Business Intelligence. In this study we explore the many facets of this phenomenon exploring how this market dynamic has evolved and where its likely to head in the future. MIT School of Management Page 18

INDUSTRY PROFILE
OVERVIEW OF THE MOBILE VALUE ADDED SERVICES (MVAS) INDUSTRY

A value-added service (VAS) is a popular telecommunications industry term for non- core services, or in short, all services beyond standard voice calls and fax transmissions. However, it can be used in any service industry, for services available at little or no cost, to promote their primary business. For mobile phones, while technologies like SMS, MMS and data access were historically usually considered value-added services, but in recent years SMS, MMS and data access have more and more become core services, and VAS therefore has beginning to exclude those services.

The Indian telecom industry is one of the fastest growing in the world. This has helped the VAS Industry in India to come out of its infancy. The launch of pocket-friendly Android based Smartphones is helping the cause of VAS services and the launch of 3G is now expected to give the Indian Mobile VAS market a huge boost. The mobile VAS market in India has the potential to generate Rs 55,000 crores by 2015 as reported by PwC.

The mobile VAS market has grown by around 60% year on year. This trend is expected to increase in future, as VAS services will become a major revenue source for telecom operators in India. This becomes critical, as the Average Revenue per User (ARPU) for telecom operators is decreasing despite the overall increase in consumer base. The growth in tier 2-3 cities has helped increase the overall consumer base of mobile services in India but this has created problems of its own. Currently companies working in VAS segment are facing challenges like high cost of VAS, limited availability of content in local language(s) and non-availability of enough high-end mobile phones such as phones in which has Android and windows. These challenges will still not affect the growth of VAS in India due to factors like increase in awareness of VAS, increased subscriber base, introduction of 3G services and increased focus on m-Commerce.

The interesting thing in the Indian telecom market is that the traditional revenue sources for the operators- voice & SMS (Short Message Service) are at rock bottom. The subscriber churn as a result of Mobile Number Portability has also added to the worries of the operators. Operators are betting on Value added services (VAS) as the next big opportunity to sustain and succeed in the market. With MIT School of Management Page 19

the increasing monthly additions in subscribership, Telecom Regulatory Authority of India (TRAI) reports that there are 919.17 million mobile subscribers in India as of December 2012. Considering that the metropolitan and large urban cities have reached a high level of penetration, Tier I & II cities as well as rural towns seem to be next beneficiaries of this technology. Due to this duality, network providers and other industry stakeholders have to provide advanced services to the existing matured users as well as ensure that financial challenged sectors are provided mobile services at affordable costs.

With mobile penetration expected to go up to nearly 100% by 2015, and the advent of 3G, MVAS revenues are expected to grow to approximately Rs. 48,000 crores. The industry is looking at various means to use MVAS as a growth driver and simultaneously as a key differentiator. While today, nonvoice revenues in India only account for about 10% of an operators revenues, the global average for leading MVAS countries is far higher, pegged at approximately 23%. The focus of the industry, so far, has been infotainment MVAS, but there is much discussion around services which have a greater growth potential and are those in the Utility MVAS category.

AN ANALYSIS OF UTILITY MVAS REVEALED BROADLY THREE KINDS OF SERVICES


(1) Information based services which usually involve one-way dissemination of information such as epidemic alerts, disaster management updates, etc.

(2) Application based services which have a level of interactivity, and require the consumer to play an active role such as checking the status of payments, IVR based language training services, etc. (3) Enablement services which include services forming a close substitute of those provided by a physical infrastructure such as a bank or a school. These services usually involve transactions such as person-to-person payments, travel reservations etc.

All the three types of services mentioned above are present in multiple categories. Page 20

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CONTRIBUTION OF VAS INDUSTRY IN INDIAS GDP


1. MARKET SIZE

Indias current Mobile Value Added Services (MVAS) industry has an estimated size of US$ 2.7 million as per FY2012-13. MVAS industry expected to grow US$ 10.8 million. Services such as governance, education, and commerce constitute only 20-25% of VAS revenues. IAMAI says though the ARPU has declined over the years, per user spent on MVAS has gone up by 28 percent in the last one year. It is now 27 percent of the ARPU.

As of March 2012, there were 48 million mobile Internet users in India. It has been growing at the rate of 17 percent. Affordable mobile devices and cheaper data subscription rates are the main drivers for this rapid growth. Mobile commerce is expected to experience the highest adoption rates and grow at a CAGR of 55.9 percent, followed by the mobile healthcare and education services. Look at Vodafone India that has tied up with mobile VAS company Handygo Technologies to launch IVR based service called Behtar Zindagi for rural India. Vodafone India has more than 70 million mobile subscribers in rural India and mobile VAS is a major focus area. In Q3 2012-13, Vodafone India posted 44 million revenue from messaging services alone against voice revenue of 785 million. Its data revenue was 94 million. An IVR-based offering from Vodafone has the potential to take the Indian mobile VAS to earn Rs 33,280 crore in 2013 from Rs 26,000 in 2012.
60.00% 56% 50.00% 40.00% 36% 30.00% 20.00% 15% 10.00% 0.00% 2009-10 2010-11 2011-12 2012-13 8.60% 9.30% 6.20% 5.20% 32% India's GDP Growth Rate MVAS Growth Rate

As we can see in the figure, Indias GDP growth is declining as well as MVAS growth. It concludes that GDP has some effect on MVAS Industry. MIT School of Management Page 21

2.

GROWTH DRIVERS

The growth in the market will be propelled by operator initiatives, as well as by the macro-economic factors such as the booming Indian economy, increasing user comfort with basic mobility services, personalization of content and devices, affordability of smartphones and 3G penetration.

The key drivers for Utility MVAS include: (1) Government mandate for inclusive growth (2) Increasing mobile phone, and network penetration (3) Need for differentiation among telecom operators and device manufacturers (4) Increasing consumer demand and awareness, even in non-urban areas (5) Business need of service providers such as hospitals and banks (6) Automation due to Information and Communications Technology (ICT).

EVOLUTION OF MVAS INDUSTRY

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MVAS came into existence in year 2000 and that time many key players entered in MVAS value chain for example Airtel, IMImobile, Hutch, Hutch etc. 1G and 2G were launched at that time. Now as the years passed market size of MVAS has grown, Innovative applications and services and 3G, 4G services launched. MVAS has services like graphics/wallpapers, ringtones, games, M-commerce and video TV. After 2009 Markets of MVAS has been emerged and will be emerging in future.

Figure shows how the market is emerging in terms of Phones, Tablets, TV, Networks, Content/Apps, and Cloud Services.

Figure depicts the revenues from different MVAS segments from 2004 2009. MIT School of Management Page 23

Information services/contests and ringtones/graphics/wallpapers dominated the MVAS market with shares of 65% and 24% respectively, followed by games (6%), Music (4%) and video TV (1%) in 2004.

Ringtones/graphics have the highest market share (34%), followed by games (31%). Information services, video TV and music will account for 25%, 8% and 2% respectively in 2009.

In 2011-2013 MVAS has introduced new category which is mobile Apps and mobile websites. In the world of 3G and 4G.

MAJOR PLAYERS IN MVAS INDUSTRY


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. ACL Wireless Limited (ACL) Air2web Bay Talkitec Comviva (Rebranded from Bharti Telesoft in 2009) ONE97 Spice Digital Hungama Mobile IMImobile GoBindas Entertainment MChek

REGULATORY FRAMEWORK FOR VALUE ADDED SERVICES


The initiation of creating a regulatory framework for VAS began with the issue of a Consultation paper on 28th May 2008 by TRAI. This paper sought the comments of all the relevant stakeholders. This was followed by open house discussion in July that year and January in the following year. TRAI preferred to have minimal interface in the provision of VAS services and thus it was decided that no separate licensing for VAS would be sought. MIT School of Management Page 24

To address the various recommendations by TRAI and to acknowledge the comments by different stakeholders various recommendations are addresses separately in the consultation document. For better understanding of the aspects a similar treatment is meted out to the same here. The final recommendations given by TRAI after taking into account the comments of the various stakeholders are discussed here.

At present there is no uniformity in the licensing conditions of various telecom service providers with regard to provision of Application Services. There is a need for clearly specifying the scope of Application Services which can be applied uniformly across various licenses. 1. The Authority in its recommendations on Growth of Value Added Services and Regulatory Issues dated 13th February 2009, recommended that the license provisions for value added services be made applicable uniformly across all the access service licenses by amending all the access service licenses inserting the following conditions:-

(i) The licensee may provide value added services and or additional facilities in case of any value addition or up gradation that the technology permits subject to intimation about provision of any value added service or additional facility along with details of provision made for lawful interception and monitoring of these services or facilities at least 15 days in advance before the introduction of these services or additional facilities; (ii) Licensee may provide Value added services such as voice mail, audiotex services, video conferencing, videotex, e-mail, Closed User Group (CUG) facilities over its network to the subscribers falling within its Service Area. (iii)Licensee may provide Internet Telephony, Internet Services; Broadband Services including triple play i.e. voice, video & data and IPTV. (iv) Licensee cannot provide Public mobile trunking service (PMRTS), closed users group domestic 64 kbps data network via INSAT satellites system and GMPCS which require a separate license. (v) All revenue earned by Licensee through these services mentioned in para (i), (ii) and (iii) above shall be counted towards the revenue for the purpose of paying license fee.

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The Authority recommends that following provisions for application services should be included in the terms and conditions of existing licenses as well as in the proposed licenses under unified licensing regime:

(i) The licensee may provide application services and additional facilities in case of any value addition or up gradation that the technology permits subject to intimation to the licensor and TRAI about provision of any application services or additional facility along with details of provision made for lawful interception and monitoring of these services or facilities at least 15 days in advance before the introduction of these services or additional facilities; (ii) The Licensee cannot provide any other application service which otherwise requires a separate license.

2. The Authority recommends that:

(i) For allocation of Short codes to telecom service providers/licensees and licensed application service providers/content providers, a Short Code Council (SCC) will be set up by TRAI. (ii) Short codes will be allotted centrally through an online web based system in accordance with the National Numbering Plan. Short codes will be allotted to both ASPs and TSPs independently. (iii)Short Code Council will also centrally manage the details of short codes allotted, type of service provided under short code, tariff for the service and hosting details for application services, which can be used by customers for discovering the services interactively. (iv) Application service provider can launch the service only after online approval by the SCC. If the ASP/TSP/content provider wishes at a later date to run a new, modified or additional application/content on the same short code, TSP/ASP/ content provider shall update the same online for obtaining revised approval. (v) Appropriate fee, one time and recurring charges, should be charged for allocation of common short code by Short code Council so that only the genuine and serious content provider/ application service provider/entity should seek the same.

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(vi) The service through allocated short code should be made operational within three months of allocation and intimated online about the date of operationalization of the common short code by the concerned Application Service Provider/ entity/telecom access service provider. If no such information is updated online within three months by TSP/ASP/content provider for declaring the service operational, it shall be presumed that the common short code has not been made operational and non-utilization of short code for a period of more than three months will be subject to cancellation of short code and reallocation to other applicants. (vii) Telecom service providers should open the common short code within a fortnight

after the code is approved by the Short Code Council and update this information online with Short Code Council. The orders/ directions/ regulations of DoT or TRAI, from time to time, as the case may be, shall be applicable in this regard.

3. The Authority recommends that for spreading awareness regarding utility application services in rural and remote areas, awareness campaign for NeGP initiated by Department of Information Technology (DIT) should be utilized. (para 2.75)

4. The Authority recommends that development of application services in Indian regional languages should be encouraged through suitable incentives.

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PRESENT SCENARIO
STATE OF THE INDUSTRY
Overall Mobile User Base in India
There are 929 million mobile subscribers in India, with about 597 million urban subscribers and 332 million rural subscribers according to TRAIs press release, dated May 31, 2012. According to the same report, the overall wireless teledensity is about 76%. According to a TRAI report in October 2011, only 71% of the overall subscribers were active. Further according to a report by GSMA, 3G connections are expected to grow more than 100 million by 2014, and India will be the second largest global mobile broadband market. A large portion of this access to broadband is expected to happen through mobiles. Suffice to say that India has leapfrogged from being almost a no-phone nation with minuscule penetration to a mobile nation with nearly a billion subscribers in a country of 1.2 billion people. According to market estimates from AC Nielsen, there are about 27 million smartphone users in urban India and still growing.

Key Factors Impacting the Industry


Over the last year, several changes have impacted the mobile industry TRAI regulations and strict enforcement of NCPR rules caused many small Mobile Engagement Service providers to go out of business. A segment that was heavily fragmented has undergone some consolidation. Guidelines governing banking transaction message delivery requirements including use of USSD. Competition among telecom operators has driven prices of telecom bearer channels lower, removing the affordability hurdle for Small and Medium Business (SMBs) / Small Office Home Offices (SOHOs). Smartphone adoption is rapidly increasing, with availability at low price points. This would allow more subscribers to access evolved Mobile Engagement solutions. Page 28

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Enterprise Mobile Engagement through m-Engagement platforms


Mobiles have become ubiquitous. Consequently, enterprises are constantly finding newer and effective ways to engage with their customers and employees through mobile engagement platforms. These m-Engagement platforms expose mobility as a service that can be used by enterprises and SMEs for reaching out to their employees and their end-customers. At the same time, telecom operators and platform providers are joining hands to provide such platforms were businesses can create enterprise-grade mobile data services to reach their customers, generate and convert leads.

Increasing Engagement through Multiple Channels


Today, businesses need a holistic and well-coordinated strategy for m-Engagement which complements their other marketing medium. One such powerful marketing channel is the mobile medium reaching more than 900 million Indian subscribers. In the past, mobile data services platforms had largely focussed on SMS messaging as the means of engagement. However, engagement over mobile can be over multiple channels; Voice and data channels, amongst others, act as a complement to the text messaging channel through a well-integrated m-Engagement platform. Today, these platforms are evolving to provide additional services such as interactive messaging, voice inbound and outbound, interactive voice response, USSD based communication, contests, polls, Callback and Missed-call services etc. Feedback from business users indicates that they desire more evolved services that encompass other enablers like network intelligence and customer profile of mobile subscribers.

Mobile Engagement through Self-Serve platforms


More and more Enterprises, SMBs and SOHOs are using Mobility as a Service through platforms where they can find resources and configure services with a high level of customization for their needs. Such Self-Serve platforms allow users in various business functions to setup their own mobile engagement services. This eliminates dependency on external vendors, or the need for long-lead, expensive internal IT projects Configure it and Deploy it. Self-serve platforms provide businesses the flexibility to modify their live services based on the usage and engagement with end customers.

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NEED FOR STUDY


In the current scenario where there is considerable dearth of information on mobile data services platforms in India and on how these platforms can be leveraged by businesses for their benefit. So we felt the need for commissioning a study that can provide a holistic picture combined with detailed analysis of the awareness and adoption of mobile technologies by enterprises.

This study will help in benchmarking the present state of awareness, use and purpose of use of mobile platform for customer engagement. Also it will help platforms providers to recognize the current state of the industry and future potential.

Thus far, the mobile industry has focused on aggregating numbers for mobile usage. While Mobile Value Added Services (MVAS) provided consumers with information, entertainment and utility services and generated incremental revenues for operators, the time is now ripe to move beyond MVAS and focus on enterprise adoption of mobile technologies for greater business productivity.

A robust and proven mobile data services platform that can act as a bridge between operators and enterprises is needed. Such a platform can drive enterprise adoption of mobiles and open up new revenue streams for operators.

This study is aimed to understand the current state of mobile engagement platform awareness and adoption in real estate and hospitality industry in Pune.

This study hopes to be a bellwether for the industry, facilitating on one hand, platform providers to recognize the state of the industry, and enterprises to realize the mobility tools available at their disposal for meeting their immediate and latent needs on the other.

The highlight of this report is a sector wise analysis of the state of the mobile platform awareness and adoption. I hope the findings of this study will be useful to all those who are concerned and connected with this company and with the Indian mobile industry.

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CHAPTER 4 LITERATURE REVIEW

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TELECOM SECTOR
SECTOR PROFILE
One of the worlds most progressive telecom markets- the Indian telecom industry has seen massive investment by both private and government sectors in the previous decade. The success story and the potential have attached newer players on the canvas due to which the intensity of competition has paced up between domestic and foreign players, which as a result, has benefitted the end user. Increasing network coverage and competitive tariffs- these are the two most prominent catalysts that are contributing to the growth of the Indian Telecom Sector. Mobile telephony continues to fuel growth in the Indian telecom sector with mobile subscriber base projected to grow at a CAGR of around 6.6% during 2011-12 to 2014-15, according to RNCOS new research report Indian Telecom Analysis (2008-2012).

SECTOR SIZE & GROWTH TRENDS


The growth pattern of previous years continued this year too. This year also witnessed a phenomenal growth in the subscriber base in the telecom sector. At the end of the financial year the subscriber base was 951.34 million, with mobile subscribers on their own being 919.17 million. The growth trend in subscriber base experienced since mid-1990s continues to be on an upward swing. The status of development of the various services of the telecom sector is outlined below.

WIRELESS
The wireless subscriber base was 867.08 million as on 31st March 2013 in comparison to the subscriber base of 919.17 million as on 31st March 2012. It reduced 52.09 million subscribers in the financial year 2012-13 registering an annual fall in growth rate of about -5.5%. The total subscriber base of wireless services has grown from 165.11 million in March, 2007 to 867.08 million in March, 2013.

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Number of subscribers
1000 900 800 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 165.11 261.07 391.76 584.32 Number of subscribers 811.59 919.17 867.8

Figure: Wireless Subscriber (in millions) WIRELINE


The subscriber base of wireline subscribers as on 30th April 2013 was 30.21 million as compared to 32.17 million subscribers on 31st March, 2012 registering a decrease of 1.96 million subscribers during the year 2012-13 registering an annual fall in growth rate of about -6.09%. Out of the 30.21 million wireline subscribers, 22.62 million are urban wireline Subscribers and the remaining 7.59 million are Rural Subscribers.

Number of subscribers
45 40 35 30 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 Number of subscribers 40.73 38.42 37.36 36.96 34.73 32.17

30.21

Figure: Wireline Subscriber (in millions)


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TELEDENSITY
The Tele-density at the end of April, 2013 reached the mark of 73.16 as compared to 78.66 at the end of previous year recording a decrease of nearly 5.50.

Teledensity
90 80 70 60 50 40 30 20 10 0 2007 2008 2009 2010 2011 2012 2013 18.23 26.22 36.98 52.74 Teledensity 70.89 78.66 73.16

Figure: Growth of Teledensity

INTERNET SUBSCRIBERS
The Internet subscriber base in the country as on 31st March 2013 stood at 164.81 million. Subscribers who accessed internet through wireless phone are about 143.20 Million. Total narrowband and broadband subscribers (excluding subscribers who accessed internet through

wireless phones) is 21.61 million as compared to 22.86 million as on 31st March 2012, registering a fall in annual growth rate of about -5.78%. The total broadband subscriber base has reached 15.05 million as on 31st March 2013 as compared to 13.81 million as on 31st March 2012 thereby registering a net addition of 1.24 million broadband subscribers during the financial year 2012-13 with growth of -8.23%.

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The Internet Subscriber base consisting of narrowband (<256 Kbps) and broadband (> 256 Kbps) for the last six years is depicted in Figure.
25 22.86 21.61 20 16.18 15 11.1 10 6.93 5 2.34 0 2007 2008 2009 2010 2011 2012 2013 9.27 7.23 3.87 7.32 6.22 8.77 7.41 13.54 11.89 9.05 7.78 6.56 13.81 Narrow Band Broadband Total 19.67

15.05

Figure: Internet Subscriber (in millions)

KEY STATISTICS
REVENUE
The Total Revenue of the Telecom Service Sector went up from Rs.1,95,442 crore in 2011-12 to Rs. 1,22,000 crore in 2012-13 indicating a decrease of -37.57%. Gross revenue during the previous quarter (or the QE Mar-13) was Rs. 54283.78 Crore. And adjusted Gross Revenue (AGR) during the quarter was Rs. 35279.50 Crores.

MAJOR PLAYERS
In terms of subscriber base and market share of GSM services, M/s Bharti with 181.28 million subscriber base remains the largest followed by M/s Vodafone, M/s Idea/Spice, and M/s Reliance with subscriber base of 150.47 million, 112.72 million and 96.99 million respectively. The market Share of various GSM operators as on 31st March 2013 is given in this figure. MIT School of Management Page 35

0.73 0.89 6.48 5.21 7.69 11.91 11.61

Market share (%)


0.41 0.42 0.16 29.9

0.1 Bharti Vodafone Idea BSNL Relience

23 15.7

Aircel Tata Unitech MTNL

Figure: Market Share (%) of GSM Operators (as on 31St March 2013)
In Cellular CDMA Services, in terms of subscriber base and market share, M/s Reliance with 56.06 million subscriber base remains the largest CDMA operator followed by M/s Tata and M/s Sistema with subscriber base of 28.97 million, and 15.80 million respectively. The market share of different CDMA operators as on 31st March 2013 is given in this figure.

3.81 0.24 15.03

0.03 BSNL HFCL

27.56

53.33

MTNL Relience Tata sistema

Figure: Market Share (%) of CDMA Operators (as on 31St March 2013)

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MARKET DYNAMICS
The Indian mobile phone market is highly competitive with more than 150 device manufacturers trying to woo the consumers with their offerings. Most of these producers focus their efforts on the low-cost feature phone market, which constitutes over 91 per cent of overall mobile phone sales, offering a huge scope for growth.

"India will add more Internet users than any country in the world over the next three years, as average penetration rises from 10 per cent to 28 per cent," as per McKinsey and Co report. Besides, with increased Internet penetration, 22 million jobs would be created by 2015.

The number of mobile banking transactions in India doubled to 5.6 million worth US$ 114.72 million in January 2013 from 2.8 million transactions worth US$ 35.06 million in January 2012.

CONTRIBUTION OF THE SECTOR TOWARDS GDP


Indias telecom sector was the poster boy for Indias growth story over the last decade. In last four years, the sector grew by 20% CAGR and the mobile subscriber base crossed 900 million, second only to China. Telecom contributes approximately 3% to Indias GDP. More importantly Telecommunications, along with Information Technology, has provided the platform for acceleration of the economic and social growth of the country across all sectors. It has empowered the small entrepreneur, whether it be a carpenter or an electrician, as much as it has facilitated the growth of companies dependent on global e-Trade. The country is completely dependent on the instant voice and data communication provided by the telecom networks; this dependency is irreversible. The telecommunication sector contributed 8.53 per cent to the countrys Gross Domestic Product in the first quarter of this year, according to the latest statistics released by the Nigerian Communications Commission.

For years 2006, 2007, 2008, 2009, 2010, 2011, and 2012, the industry was said to have contributed 1.91, 2.31, 2.92, 3.66, 4.56, 5.67 and 7.05 per cent, respectively to the GDP.

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MOBILE VALUE ADDED SERVICES


Based on a study of existing services in various parts of the world, and current needs of the country, there appear to be four focus categories:

M-COMMERCE
M-Commerce services consists of payments, banking, and retail transactions over the mobile phone such as person-to-person payments, bill payments etc. Internationally, M-PESA in Kenya is a great success story where remittance services offered by Vodafone and Safaricom are being utilized by approximately 27% of the population, monthly transactions are over $375 Mn. and users save up to $3 per transaction. In India, players such as Spice, Oxicash, MChek, NGPay, ICICIs iMobile are already offering some services in this area but these are mostly restricted to information services, and some basic applications such as bill payments to select billers. However, there is plenty of activity evolving in this area in India, on the regulatory and industry front. The RBI is contemplating regulations to promote M-Commerce, without compromising on security, and also devising a payments infrastructure to enable delivery of banking services to a larger section of society with the help of the National Payments Corporation of India (NPCI). Thus, M-Commerce has the potential to promote financial inclusion and foster economic growth for large sections of the Indian society, if all key stakeholders work together effectively.

M-EDUCATION
M-Education services consists of training and learning related content, both in the sphere of formal education and non-formal and vocational training through mobile applications using SMS, WAP, USSD etc. While most companies in India are largely focused on corporate learning or providing examination alerts for major public examinations, there is tremendous scope for services such as language training (text, audio, and interactive), mobile reading, broader adult literacy and vocational training on specific subjects. In India, Spice, EnableM, Deltics, GCube Solutions, Tata DoCoMo are some of the players in this area. Some countries such as South Africa have also adopted the mobile phone as an integral part of the education system as it provides a platform to support and enable the curriculum, providing self-tutorials, and interactive tutorials to children in subjects such as Maths MIT School of Management Page 38

(for example, the Dr. Math initiative in South Africa, launched on a social networking platform called MXit has seen tremendous popularity with the South African teenage population). In India, education is an area where the Government can take an initiative to put together a large scale mobile education program, and private players can also look at potential areas of key consumer need, especially in non-formal and adult education in order to harness the potential of M-Education in the country.

M-HEALTH
M-Health is the services which use mobile devices to deliver health solutions such as health alerts, updates, and patient monitoring systems. M-Health is in a very nascent stage in India today but some of the healthcare service providers and telcos such as AIIMS, Maestros Mediline Systems, Apollo Hospitals, Aircel see a tremendous opportunity in the use of mobile applications for service delivery as powerful applications can help to increase productivity and efficiency of their staff members, and also increase their ability to reach patients. For example, an initiative being undertaken on a small scale currently is teleradiology which enables physicians to view high resolution X-Ray reports on their smart phone screens and instantly send back reports. This is an example of a relatively advanced application based service. Even simpler services such as information based services which spread education and awareness around chronic diseases using simple IVR or SMS technology have been found to be tremendously effective in countries such as South Africa (for AIDS), Mexico (for heart disease). Governments such as the UAE government have a Health Authority which focuses on using technology to collect data, send out reports, and provide instructions and health guides to all citizens. As public health is a key development indicator for the Indian government, it could also similarly look at an overarching M-Health initiative.

M-GOVERNANCE
M-Governance is the services which involve the strategy and utilization of all kinds of wireless and mobile technology services, applications, and devices for improving the delivery of effective government services for all citizens. In India, Bihar and Kerala are pioneers in the field of MGovernance. The Bihar Government is using an SMS based system to monitor performance of various schemes across districts. Kerala is planning to use mobile technology as an enhancement to its existing e-Governance platforms. Other governments such as Goa are also planning to deploy MMIT School of Management Page 39

Governance services. Globally, governments in countries such as China, Dubai, Hong Kong, Singapore, and Malaysia have deployed M-Governance services from basic information based services such as natural disaster alerts to enabling polls through mobile phones. There are many global examples of effective M-Governance services and India can draw from these examples to devise an always-on governance system, which has the ability to connect and provide services to all citizens more effectively, efficiently, and on a real time basis. Thus, there is plenty of scope to develop and deploy Utility MVAS services in the country.

Figure depicts the share of different categories which comes under MVAS.

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MOBILE VAS MAKET POTENTIAL (INR BN) & ITS SHARE OF TELECOM REVENUE

Figure depicts the following:


Data access will be the biggest revenue driver based on handset based access and CCD / dongles

CRBT will decline in revenue contribution due to poor per unit economics for carriers and end user affordability.

SMS penetration is expected to stabilize at the current levels due to consumer behaviour and literacy issues unless local language can be introduced

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Growth is driven primarily by a forecasted 534 mn data users in 2015 across 2.5G, 3G and 4G, contributing 54% of total mobile VAS revenue.

Figure depicts the following:


Of an estimated active base of 1.1 bn subscribers in 2015, 154 mn subscribers are expected to access data on 2.5G and 314 mn subscribers on 3G Adoption of mobile handset data will continue to grow, with reduction in price per MB for HSPA data, increasing penetration of feature-phones and smartphones, as well as availability of content and applications User base of 22 mn is expected on 3G handsets in 2011, contributing a data ARPU of INR 133 in 2011 going down to INR 49 in 2015, with access accounting for a major share of the revenues EVDO dongles are expected to dominate the mobile broadband access market from PCs, as they provide relatively better capacity and cost per MB than HSPA 4G / LTE dongle and CCD base is expected to reach 21 mn by 2015 Page 42

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Opportunities
Experts claim that Mobile ramping would be faster than desktop Internet and bigger than what most think. The five trends converging would be 3G, Social Networking, VoIP, Video and Impressive Mobile Devices.

Amongst the major MVAS services, Communication VAS services comprising of SMS, Video Calls, MMS and Email is expected to cross Rs 20,000 crores by 2015 with a majority contribution by SMS. Information VAS services comprising news and alert based services are expected to cross Rs 7,900 crores by 2015. Entertainment VAS services comprising of Caller Tunes among other things are expected to be the most profitable VAS segment and are expected to reach Rs 25,000 crores by 2015. Multilingual content, application support around languages, killer applications and readiness of handsets will drive this growth.

Among the factors that will affect future growth, is rising demand for regional and multi-lingual content; medical advice VAS; video calling and m-commerce leaving a large scope of growth. Online gaming on mobile is expected to be a favourite among students. Growing Subscriber base. Evolving VAS users Availability of Smart phones. Innovative offerings. 3G rollout.

Challenges
The adoption rates are expected to remain low for m-commerce. SMS as a percentage of mobile VAS revenue is expected to decline to around 25% by 2015 from current levels of around 60% according to PwC Regional Entertainment based VAS services are expected to be in big demand and localization and multi-lingual capabilities require more focus Revenue Sharing. Consumer education and awareness. Devices and Technology. Dominance of prepaid subscribers Page 43

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ENTERPRISES MOBILE APPS


In 2012, there were more than 200,000 enterprise apps present worldwide and thats without counting private enterprise app stores. But only a few of them actually met core enterprise needs.

This is one of the reasons enterprise app adoption has stayed at medium levels at best. One crucial argument is the fact that level of individualization or customization cant be met by generic app store apps, which dont take target specific and unique enterprise needs. Currently in Q1 2013, enterprise mobility solutions are fragmented and enterprises are looking for a holistic answer to fit unique needs. But things arent so bleak as they seem, for one major trend in 2013, is an increased awareness and use of PaaS - which will enable non IT enterprise personnel to more effectively manage and build apps for both employees and executives.

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The second trend affecting enterprise mobile apps adoption will be enterprises setting up their own private app stores that will provide better security, app control and increased agility in solving issues or achieving business objectives. When looking at needs were also seeing the benefits they expect of enterprise mobile apps. A key note that enterprise apps need to deliver is improved communications and efficiency to create tangible business value. Generic apps that arent tailored to this idea will fail to help companies in securing a competitive advantage and pioneer new ways of doing business.

Weve seen the needs; now lets see one effective solution that has changed the business culture by redefining the B2E relationship, namely the BYOD approach. BYOD, or bring your own device, basically means encouraging employees to bring their own devices, in this case smartphones and tablets in the workplace. Coupled with enterprise apps, BYOD strategies have proven to be an effective tool in fulfilling real enterprise needs and goals.

In a survey by Dell Quest Software, 56% of enterprise respondents said that BYOD had effectively changed their business culture and organization. One of the key advantages of BYOD is that instead Page 45

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of investing in the (costly) purchase of new hardware and devices, companies can leverage the very tools employees bring to the workplace. Namely, smartphones and tablets.

Coupled with effective MDM (mobile device management), BYOD strategies working side by side with objective-tailored enterprise apps lead not only to reduced costs, but it changes the face of how employees interact and work within companies themselves. Imagine a situation where a company doesnt have to enforce a device-centric approach and can take advantage of multiple mobile platforms to improve efficiency, business agility and be at a competitive advantage. Instead of investing in devices, companies should focus on investing in getting the apps and data to the mobile devices already present to their own employees and execs. As Dell Software Group CIO Carol Fawcett stated: We found this approach allowed us to be much more strategic and enabled us to focus on our biggest BYOD problems; security, access rights and data leakage. The results of this latest BYOD survey reinforce the importance of putting users first in order to develop the most effective policies and turn BYOD into a long-term, sustainable business benefit.

Over the next five years, 65 percent of enterprises will adopt a mobile device management (MDM) solution for their corporate liable users, according to Gartner, Inc. With the increased functionality of smartphones, and the increasing popularity of tablets, much of the network traffic and corporate data that was once the primary domain of enterprise PCs is now being shifted to mobile devices. "The era of the PC has ended. Employees are becoming more mobile and looking for ways to still be connected wherever work needs to be done," said Phil Redman, research vice president at Gartner. "The convenience and productivity gains that mobile devices bring are too tempting for most companies and their employees. Securing corporate data on mobile devices is a big challenge, but one that companies must embrace. Enterprises are struggling with how to support and secure this dynamic workforce." CONCLUSION AND RECAP - Its a buyers market as they say for enterprise apps. The need and demand is there, the benefits and competitive advantages are rich and enterprises are looking for ways to augment their businesses. 2013 promises big leaps in the proliferation of better hardware especially tablets which are more used in enterprises than smartphones which, coupled with the awareness of PaaS and BYOD integration, enterprise app adoption can grow to a greater key strategic differentiator in enterprise mobility. MIT School of Management Page 46

Mobile enterprise: Are businesses prepared to take advantage of this opportunity?


A new research forecasts that the enterprise mobility market will reach $1.6 billion in 2014 with enterprises tapping into the mobile platform to extend business services and internal applications, and improve productivity.

However, in spite of the growth prospects, businesses are facing challenges around platform integration and mobile fragmentation which hinder the quick adoption of effective mobile enterprise strategies. These challenges bring forward the pressing need of skilled mobile application developers and innovative solutions that can cater to the needs of the mobile enterprise market. The increased demand for mobile engineers, which affects large companies and fast-growing start-ups alike, is emerging as a key bottleneck as companies struggle to capitalize on the fast growth of smartphones and other mobile devices.

Early this year Google announced its plans to hire top mobile application development talent while recruiters reported a record demand for mobile engineers with vacancies for Android developers rocketing by 424% in the space of a year. As enterprises are increasingly looking to take advantage of enterprise mobility, it becomes clear that most of the companies are not prepared to deal with the challenges on their own.

Mobile computing is fundamentally different from traditional enterprise computing models and enterprises need to adopt solutions and business strategies which are specifically tailored to the mobile platform.

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More BYOD businesses adopting enterprise mobility solutions


Enterprise mobility solutions are being adopted more frequently than in the past. The amount of cell phone users continues to increase, with the majority owning a smartphone. The implementation of BYOD and mobility opportunities can entice millennial employees, empowering the workers to multi-task and conduct business from home, according to Something Creative CEO Jen Cohen Crompton. Through mobility options, users can access information in any location in the way that is most convenient for them without sacrificing the security of their device or company data. Mobile business applications have also become more popular to keep employees on track and optimize personal phones for use on the job. This way, they can work with secure apps without having to worry about compromising company data or losing their own information.

"While it won't be easy, to do this successfully, consider four main steps that could make the process a little more organized and mitigate some of the potential risks and pitfalls," Crompton wrote. "The steps include: choosing a partner, building a strategy, creating use-case scenarios, and building a roadmap for deployment."

Enterprise mobility solutions have changed the way that organizations use their communications system and how workers approach their jobs. With more remote work opportunities and custom business applications, companies can better utilize personal devices for overall success.

ENABLING THE MOBILE-FIRST ENTERPRISE


Enterprise mobility has evolved from being a fancy requirement to become one of the top priorities of most organizations.
It has taken more than five years, but the first phase of integrating mobile into enterprises is almost over. Enterprise mobility is evolving. The first generation of enterprise mobile solutions focused on the management of mobile devices (MDM), enabling traditional email applications and the MIT School of Management Page 48

occasional custom mobile app. It is time to take the next step. A new generation of mobile technologies is helping enterprises to reimagine entire business processes from a mobile-centric standpoint. This movement is starting to be known in the industry as the mobile-first enterprise.

This is an attractive concept for most organizations. But, building the mobile-first enterprise is far from an easy endeavour. Based on our experience, this type of transformational movement is a longterm process that requires various foundational components from both the technological and organizational standpoint.

What are the elements that can help to enable the mobile-first enterprise? Some of the ideas listed below might help.

BYOD Is An Enabler, Not The End Goal


The bring your own device movement has become a catalyst to the evolution of enterprise mobility solutions. Empowering employees to use their own tablets and smartphones for work-related activities has become a core characteristic of the modern enterprise.

However, most organizations are still building the required security, management and compliance infrastructure to enable a BYOD environment. To evolve, organizations must realize that BYOD by itself is just a starting point to build the mobile-first enterprise. Not the end result.

Enabling mobile-first enterprise applications and business processes that access corporate data from personal devices in a secure and efficient manner is the true end goal of the mobile-first enterprise.

Beyond MDM
Mobile Device Management (MDM) has been at the centre of the first generation of enterprise mobile. The ability to manage and secure smartphones/tablets has been seen as a key element of any enterprise mobile infrastructure. Consequently, in recent years, the market is experiencing an explosion on the number of MDM technologies claiming to be the silver bullet to enable an enterprise mobile infrastructure.

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Managing connected devices is not enough to implement mobile-first enterprise applications. Expanding beyond MDM and focusing on managing the enterprise mobile applications and the corresponding business data in your infrastructure are, arguably, more relevant capabilities to enable the mobile-first enterprise.

Contextualizing and Mobilizing Business Data


One of the holy grails of enterprise mobile infrastructure is to enable mobile applications to leverage data hosted in corporate business systems. It may be conceptually trivial, but the process of mobilizing business data can be extremely challenging.

In order to enable a mobile-first enterprise experience, organizations need to build the infrastructure to contextualize business data so that it can be effectively consumed on enterprise mobile applications. While technologically challenging, building the infrastructure to effectively mobilize data from corporate systems can drastically simplify the experience of incrementally building enterprise mobile applications.

Mobilizing Existing Business Processes


Some of the most successful organizations are the ones that have been able to redefine existing business processes using a mobile-first approach. In this model, traditional business capabilities enabled via a desktop experience will be simplified and redesigned for smartphones or tablets in order to provide an optimal productivity experience.

Creating Mobile-First Business Processes


In addition, enterprises are starting to create new business processes to enable new business capabilities using a mobile-first paradigm. Mobile point-of-sale (POS) or mobile customer relationship management (CRM) systems are some of the best examples of mobile-first business processes being enabled in todays enterprises. This type of mobile-centric business capabilities is a key element in the DNA of the mobile-first enterprise and helps organizations achieve greater differentiation and agility in the current mobile economy.

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Leverage Mobile-First Business Apps


The previous sections have highlighted the importance of building the infrastructure to implement new enterprise mobile apps as an essential element to enable the mobile-first enterprise. Equally important, is for organizations to invest in the infrastructure required to adopt domain-specific mobile business apps available in the marketplace.

As the adoption of mobile technologies increases in the enterprise, we are starting to witness a new generation of mobile-first business apps that are redefining both horizontal and vertical business capabilities. Enabling the infrastructure to adopt those new mobile business apps in an efficient, secure approach tailored to your enterprise can improve the journey to the mobile-first enterprise.

The What, Why, Who and How of Enterprise Mobility Adoption


The how of enterprise mobility adoption
How did enterprise mobility adoption evolve over the last 10 years? Adoption of enterprise mobile solutions and strategies came in three waves.

In Wave 1 enterprises focused on making common internal productivity applications available for mobile users. Personal Information Management (PIM) including email, calendar, and contacts became the killer applications driven mainly by the BlackBerry universe. Much of the enterprise world is still in this wave but moving rapidly forward to the next wave.

The iPhone, iPad, and the Google Android devices ushered in Wave 2. Enterprises realized that they can reach their customers (particularly in the B2C world) by developing user-friendly and rich applications.

In Waves 1 and 2 of the enterprise mobility spectrum, enterprises made their existing applications available in a mobile context and also experimented to see what value would come out of mobility. MIT School of Management Page 51

We are now at the cusp of Wave 3, where some forward-looking enterprises innovate to discover that the greatest value of mobility is in enabling them to be more competitive in their markets so they can gain new customers and improve existing customers satisfaction. The 16 use cases and 6 case studies in the report clearly demonstrate that some companies are innovating their way to a significant competitive advantage.

The why of enterprise mobility adoption


Why are enterprises adopting mobility? What are the most important reasons for moving to mobility? Most enterprises now operate in a 24/7 global environment and depend on mobility as key to timely, effective communications in such areas as:

Sales and marketing field activities Customer support through real-time information Supply chain management Executives on the road

A lot of work these days is not tied to a desk or a desktop computer. Work also takes place in meetings, HR training sessions, collaborative team sessions, and lunch with customers. Its obvious that these employees need instant access to the most important company data, presentations, and documents to be effective.

This hypothesis was validated by our survey results. When asked What was your companys most important reason for moving to enterprise mobility solutions? (Select all that apply), the majority of the online survey respondents said it was faster access to company data followed by improved collaboration among employees.

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The who of enterprise mobility adoption


Who is driving the adoption of mobility within the enterprise?

Unlike other enterprise technologies, driven by the IT group, employees are driving the pace of mobile adoption, wanting the same user-friendly computing at work that they enjoy outside of work. Importantly, our interviewees stated that a sizeable number of these employees are actually top executives. They were immediately attracted to the competitive benefits of iPads when they were first launched into the market.

Our online survey respondents also indicated that senior executive roles heads of business units and executive management are driving the use of mobile solutions in their companies. Study interviewees shared these examples: When a financial services companys competitor showed up with an iPad at a mutual clients office, the financial executives reaction was that he had to have an iPad in order to compete. When an airline pilot heard that another airline replaced paper flight plans with iPads in order to cut down on paper and increase efficiency, he looked into how to do the same thing at his company. At the U.S. Open, a bank used mobile devices to demonstrate the banks new deposit system to people waiting in line. MIT School of Management Page 53

The what of enterprise mobility adoption


What applications and functional areas are adopting mobility in the enterprise?

Survey respondents identified functional areas in their company that currently use mobile devices the most. Almost half identified sales / sales support and information technology as the top areas. By far, corporate email, contacts, and calendar are the most available enterprise applications/services used in the survey participants companies. This indicates that many enterprises are still in Wave 1 of the enterprise mobility adoption spectrum.

Executives identified three areas among the other areas where mobile devices are most used in respondents companies: inpatient care, service delivery and management personnel for approvals and across disciplines.

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SUMMARY
Based on the sector profile of telecom sector, sector size and growth trends, key statistics like revenue, market dynamics, contribution of telecom sector towards GDP we can conclude that there is great scope for the growth of companies like IMImobile and various other such companies that provide enterprise mobile solutions. There is hope that if enterprises are made aware of how they can leverage the mobile platform, they would adopt the same readily.

Literature review also brought to our notice the significance and need of mobile value added services. Current needs of our country in this regard are m-commerce, m-education, m-health, mgovernance. Also we learnt the various services included in MVAS, mobile VAS market potential, its share in telecom revenue, opportunities and challenges faced by it.

Analysts forecast the Global Mobile VAS market to grow at a CAGR of 10.67 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing adoption of smartphones and tablets. The Global Mobile VAS market has also been witnessing an increasing adoption of m-Commerce. However, the lack of awareness among mobile VAS users could pose a challenge to the growth of this market.

Report on enterprise mobile apps showed that one of the reasons enterprise app adoption has stayed at medium levels is the fact that level of individualization or customization cant be met by generic app store apps, which dont take target specific and unique enterprise needs. Currently enterprise mobility solutions are fragmented and enterprises are looking for a holistic answer to fit unique needs.

We saw that one effective solution that has changed the business culture by redefining the B2E relationship is the BYOD approach. Coupled with enterprise apps, BYOD strategies have proven to be an effective tool in fulfilling real enterprise needs and goals.

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Over the next five years, 65 percent of enterprises will adopt a mobile device management (MDM) solution for their corporate liable users. Much of the network traffic and corporate data that was once the primary domain of enterprise PCs is now being shifted to mobile devices. Its a buyers market as they say for enterprise apps. The need and demand is there, the benefits and competitive advantages are rich and enterprises are looking for ways to augment their businesses. 2013 promises big leaps in the proliferation of better hardware especially tablets which are more used in enterprises than smartphones which, coupled with the awareness of PaaS and BYOD integration, enterprise app adoption can grow to a greater key strategic differentiator in enterprise mobility.

In spite of the growth prospects, businesses are facing challenges around platform integration and mobile fragmentation which hinder the quick adoption of effective mobile enterprise strategies. These challenges bring forward the pressing need of skilled mobile application developers and innovative solutions that can cater to the needs of the mobile enterprise market.

More BYOD businesses are adopting enterprise mobility solutions.

Enterprise mobility has evolved from being a fancy requirement to become one of the top priorities of most organizations. Enterprises are starting to create new business processes to enable new business capabilities using a mobile-first paradigm. Mobile point-of-sale (POS) or mobile customer relationship management (CRM) systems are some of the best examples of mobile-first business processes being enabled in todays enterprises.

It is important for organizations to invest in the infrastructure required to adopt domain-specific mobile business apps available in the marketplace. As the adoption of mobile technologies increases in the enterprise, we are starting to witness a new generation of mobile-first business apps that are redefining both horizontal and vertical business capabilities.

The how of enterprise mobility adoption showed how enterprise mobility adoption evolved over the last 10 years. Enterprises realized that they can reach their customers (particularly in the B2C world) MIT School of Management Page 56

by developing user-friendly and rich applications. Enterprises made their existing applications available in a mobile context and also experimented to see what value would come out of mobility. Now some forward-looking enterprises innovate to discover that the greatest value of mobility is in enabling them to be more competitive in their markets so they can gain new customers and improve existing customers satisfaction. The why of enterprise mobility adoption showed why enterprises are adopting mobility. Most enterprises now operate in a 24/7 global environment and depend on mobility as key to timely, effective communications in such areas as sales and marketing field activities, customer support through real-time information, supply chain management, executives on the road. By survey results, most important reason was faster access to company data followed by improved collaboration among employees. The who of enterprise mobility adoption showed who is driving the adoption of mobility within the enterprise. Employees are driving the pace of mobile adoption, wanting the same user-friendly computing at work that they enjoy outside of work. A sizeable number of these employees are actually top executives. Online survey respondents indicated that senior executive roles heads of business units and executive management are driving the use of mobile solutions in their companies. The what of enterprise mobility adoption showed what applications and functional areas are adopting mobility in the enterprise. Survey respondents identified sales / sales support and information technology as the top areas. By far, corporate email, contacts, and calendar are the most available enterprise applications/services used. Other areas where mobile devices are most used: inpatient care, service delivery and management personnel for approvals and across disciplines.

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CHAPTER 5 OBJECTIVES, SCOPE & LIMITATIONS

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OBJECTIVES OF THE STUDY


To understand the present state of awareness among enterprises about mobile engagement software and solutions

To understand the present state of adoption of mobile platform by enterprises to engage with various stakeholders

To understand the use & purpose of use of mobile platform by enterprises

To do sectoral analysis of the state of mobile adoption

To conduct a study that can provide a holistic picture combined with detailed analysis of the adoption of mobile technologies by enterprises. To help platforms providers to recognize the current state of the industry and future potential.

SCOPE OF THE STUDY


Businesses can benefit from the information on mobile data services platforms in India and on how these platforms can be leveraged by businesses for their benefit.

Based on the findings, MVAS providers, that provided consumers with information, entertainment and utility services and generated incremental revenues for operators, can move beyond MVAS and focus on enterprise adoption of mobile technologies for greater business productivity.

Knowledge gained from the research can enable the development of a robust and proven mobile data services platform that can act as a bridge between operators and enterprises.

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A robust and proven mobile data services platform can drive enterprise adoption of mobiles and can open new revenue streams for operators.

This study can be a bellwether for the industry, facilitating on one hand, platform providers to recognize the state of the industry, and enterprises to realize the mobility tools available at their disposal for meeting their immediate and latent needs on the other.

Findings of this report can be useful to all those who are concerned and connected with the Indian mobile Industry.

Duration of the Project: 2 months

LIMITATIONS OF THE STUDY


The study is limited to urban area

The study was conducted mostly on small medium enterprises (SMEs) and small offices home offices (SOHOs)

Findings of the study cannot be applied to overseas enterprises

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CHAPTER 6 RESEARCH METHODOLOGY

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RESEARCH APPROACH
The approach is that of a mixed research i.e., qualitative and quantitative research.

Deductive Reasoning

TYPE OF STUDY AND RESEARCH DESIGN


The type of research design is descriptive research design. Description of present picture of a phenomena Describes associated variables e.g. firms, services used etc

The chosen data source is primary data and secondary data. For primary data gathering method is survey.

A mailed questionnaire/telephonic interview is conducted of 200 people over 2 months during cold calling and emailing to promote the companys services.

This method was adopted due to nature of the job which was as follows:

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START
SELECT A SECTOR

INFORMATION SEARCH

FINDING LEADS COLD CALLING

NO

IF LEAD IS INTERESED

YES

STOP NO
ASK TO SEND A MAIL

YES

STOP

SEND A DETAILED MAIL NO


TAKE FOLLOW UP GET REPLY

YES

YES
SOLVE IT OR ASK WITH TRAINNER IF SOLVED

IF ANY QUERIES

NO

FORWARD TO SALES TEAM & FIX APPOINTMEN T

STOP

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DEFINITION OF THE TARGET POPULATION AND SAMPLE SIZE


The target population comprises of different size companies ranging from large enterprises and MNCs to SOHOs.

But the prime focus is on small medium enterprises (SMEs) and small offices and home offices (SOHOs)

Practical consideration in determining sample size is used and the sample size decided upon is 200. This is because the time period is two months and the lead generation target through cold calling and emailing is given by the company as 200 prospective enterprises.

SAMPLE DESIGN AND DATA COLLECTION METHOD


Probability sampling method, i.e., stratified random sampling is used.

Stratified Random sampling - A probability sampling technique in which the population is divided into different sub-homogeneous groups or strata and samples are randomly selected from such sub-groups or strata.

Data collection method adopted for primary data source is mailed questionnaire/telephonic interview.

Secondary source of data are the reports by various research organizations as well as a joint study on Mobile Platform Adoption by Enterprises by Internet and Mobile Association of India (IAMAI) and IMImobile.

SPECIFIC RESEARCH INSTRUMENT


A questionnaire is used for the purpose of mailed questionnaire/structured telephonic interview. Type of scale used is a rating scale, i.e., semantic differential (SD) scale. Page 64

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CHAPTER 7 ANALYSIS OF DATA AND FINDINGS

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STATE OF AWARENESS
Level of Awareness of Services, Expectation from Services

Platform Awareness and Expectation by Business Segment

Trends in Mobile Data Services Platform Discovery


Enterprises use multiple means to discover mobile service creation and delivery platforms that enable m-Engagement through multiple means. A study of the usage of businesses newly registered in the last 2 months revealed the distribution shown below.

After observing this data of business users and correlating it with web analytics, it is seen that search engines like Google, Yahoo and Bing are the most prevalent way of discovering m-Engagement platforms, followed by traditional phone call based lead generation, promotional E-mails and SMS finally through customer references.

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Source of Platform Discovery May 2013 to July 2013


60% 48%

Search Engine Phone Call Reference Received SMS

50%

40%

30%

Online Ads
Received Email
17% 11% 10%

20%

Call Centre Conference Promotion Card


4% 1% 1% 1% 1%

10%

6%

Others

0%

Internet search as a growing medium of platform discovery


The proportion of users who discover m-Engagement platform through search engines is steadily increasing. The graph below shows that this increased from 47% to 49% during period of study. However, the proportion of lead conversion through phone calls has decreased from 21% to 18%. This suggests that long tail capturing can happen in a scalable and sustainable manner best through online discovery means.

The figures show the relative distribution of means through which users discovered the mEngagement platform, during the duration of the study. It is observed that proportion of users discovering these platforms through references has continuously increased, indicating a chain adoption in the industry. When one business adopts it, other businesses have been observed to adopt it in a similar manner. Adoption is highest through references across functions within the same business. In the SME segment, previously it was observed that businesses preferred calling into a call centre and talking with a live agent for gaining confidence in the platform before deciding to use it. However, it is now observed that self-discovery through internet is a sustainable means of platform discovery.

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Source of Platform Discovery 1


50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 10% 10% 5% 3% 1% 1% 1% 1% 21% 47%

Search Engine Phone Call Reference Received SMS Online Ads Received Email Call Centre Conference Promotion Card Friend

Source of Platform Discovery 2


60% 50% 40% 30% 20% 10% 0% 18% 10% 8% 6% 49%

3% 2% 1% 1% 2%

Search Engine Phone Call Reference Received SMS Online Ads Received Email Call Centre Conference Promotion Card Others

Source of Platform Discovery 3


60% 50% 40% 30% 20% 11% 10% 0% 13% 49%

10% 6% 6% 1% 1% 1% 2%

Search Engine Phone Call Reference Received SMS Online Ads Received Email Call Centre Conference Promotion Card Others

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Additionally, increasing number of users are discovering m-Engagement platforms through online search on their mobile devices. Feedback from m-Engagement platform users conveys a strong requirement from the market for not only discovering but also accessing such m-Engagement Platforms from mobile devices.

Channel Partners as a means of enhancing awareness and adoption


In the past, resellers of m-Engagement platforms increased the reach of these platforms. The primary drivers for the incubation of resellers was Indias wide geographic spread, low internet penetration and SMB/SOHOs making buying decisions based on relationships. Moreover, since the service configuration and delivery were simple, resellers could rebrand these platforms and sell it, particularly in their local communities and to local SMEs. These resellers leveraged the support provided by the platform provider to serve their own customers. However, with increasing complexity of service configuration and more evolved services, the eco-system will also need to evolve. A new m-Innovation network consisting of resellers with technical expertise and development capabilities needs to be fostered. Such partners must be provided more support in terms of training, support and collateral. Setting up such a Value Chain will open a new opportunity channel for innovations in the use of m-Engagement platforms and help the famed long-tail of SME/SOHOs to leverage the full benefits of Mobility as a Service. A nation-wide m-Innovation network, comprising of platform catalysts and platform providers is therefore essential for enterprises to leverage these innovations.

STATE OF ADOPTION
Expectation from Platform Providers
Businesses per se want platform providers who will satisfy important conditions of vendor viability They require financially sound suppliers who have stable long term plans and platform roadmaps. Such m-Engagement platform providers must have a successful working relationship with operators, MIT School of Management Page 69

own their intellectual properties and have a history of complying with SLAs. Point vendors can only provide restricted number of services. However, customers with evolving needs would require the use of more than one channel to engage with their customers. Services across channels and across resources must be available at a one-stop shop to continuously cater to their needs without having to switch service providers. Consequently, providers who fulfil these expectations will find greater traction for their platforms.

Extent of Platform Adoption


Small and Medium enterprises continue to be increasingly large consumers of low end mobile solutions with growing appetite for evolved services.

Mobile adoption amongst Enterprises and SMEs in India is still at a nascent stage, predominantly for promotions, transaction alerts and communication using Inbound Messaging Services. As businesses benefit more and more from existing services, they use more evolved services to increase reach or to obtain greater lead conversion. For instance, a simple text broadcast evolves into a Voice message broadcast, which supports better local and rural reach.

While this is so, telecom providers are allowing traffic on their network such as text messaging, voice and interactive messaging. However, network intelligence and CRM data remain untapped. Highest levels of benefits for enterprises can be leveraged from these assets. Operators can monetize these assets for increasing their Business ARPU. Such usage of their assets is expected to be more beneficial for enterprises and businesses.

In the past, SMBs and SMEs were unable to discover these services first due to lack of awareness and then were unable to use them due to lack of infrastructure such as connectivity. So, adoption was happening only in Tier-1 cities. Moreover, business functions like Marketing, HR, Sales, etc. within an organization were dependent on IT teams for any technology requirements. Exacerbating this situation was that there was a dearth of useful information on the appropriate m-Engagement platforms available or on how they could be leveraged by SMEs and Enterprises.

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m-Innovation network partners are expected to champion these platforms geographically and across different business verticals. Increasing internet penetration and cloud services bring these platforms within the ambit of these businesses, hitherto uninitiated to mobile engagement services. Self-serve platforms render these services simple to use for actual users in various business functions and eliminate the need for the dependency on IT teams and developers. From a platform providers perspective, enterprises and SMEs are discovering the power of mobile data services to engage better with their customers and employees. Exposing Mobility as a Service allows enterprises to use bearer channels like SMS, USSD, Voice, and Data in innovative ways, though application logic to build engaging means to reach and interact with the mobile users. In fact, m-Engagement has shown to bring a clear advantage to enterprises and SMEs, such as increased lead conversion, increased customer satisfaction, increased employee engagement, leading to higher revenues and profitability. While messaging services are highly adopted, enterprises are exploring other channels such as Voice, USSD, Data, etc. as well as a combination of these channels to find interesting ways to engage with customers.

Supply Side Drivers


Several drivers on the supply side of the m-Engagement platform value chain influence the adoption of these platforms. GSMA, through its OneAPI standard has been a step in the right direction to encourage adoption of APIs for internet based access to mobile engagement services. API standardization is a step in the right direction technology hurdle overcome. Reducing costs due to competition amongst network operators economic hurdle overcome. Discovery of m-Engagement platforms through online search, due to more SMEs and SMBs going online discovery hurdle overcome. Pay As You Go that substitutes CAPEX with an OPEX model is more palatable to SMBs. Mobile devices and Mobile operating systems now provide new inbuilt channels for information exchange that can be leveraged by m-Engagement platform providers. An evolution in m-Engagement platforms that provides Ready To Use applications for common engagement needs. MIT School of Management Page 71

Demand Side Drivers


Mobile as an ubiquitous medium for reaching the target audience and hence a powerful potential tool to be leveraged for business. Increasing awareness about existence of such platforms. Increasing availability of internet access for small business in all parts of the country. Businesses increasingly integrating mobile into their operational workflow.

Telco Side Drivers


Innovations in mobile engagement not only require leveraging under-utilized assets like USSD and location but also opening up hitherto dormant assets. This allows enterprises to benefit by using Operators network Intelligence for better segmentation and targeting. On the other front, it also allows operators to measure and monitor the usage of their assets using a Network Intelligence Usage Coefficient. With this, operators can now quantitatively enhance the usage of their assets and get increased revenues through better utilization.

STATE OF USE
The use of m-Engagement services is increasing. Consumption is evolving visavis a year ago. The NCPR regulations from TRai affected broadcast messaging in the short term. Businesses dicovered innovative ways such as encouraging end-users to subscribe to permission based marketing. A marked increase is observed in the use of m-Engagement services through APIs. Application Developers and BFSI continue to be the largest consumers, as individual verticals, for API adoption.

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Impact of TRAIs Regulatory Changes (NCPR) on Push Messaging Consumption


Post the National Consumer Preference Registry (NCPR) regulation from TRAI came into effect from September 2011, as platform providers implemented these regulations, the number of promotional messages came down drastically. Over the following months, transactional messaging increased to offset the decrease in promotional messaging.

Impact of TRAI DND Guidelines on Promotional and Transactional Messaging

Impact of NCPR regulation:


1. Improvement in Service levels for Transaction routes 2. Marketers finding innovative means to engage with customers 3. Increasing adoption of two way messaging (via short code/long code) 4. Consolidation of the Industry

Largest affected sectors:


Post the NCPR regulation, usage from real-estate sector and educational institutions, which were amongst the largest consumers of promotional messaging, came down drastically. MIT School of Management Page 73

Overall Trends in Consumption of Messaging Services


The figure below shows the overall distribution of the usage of messaging services. BFSI followed by Application Software Developers are the largest users of these services. This is closely followed by media and entertainment, education and businesses involved in providing marketing services.

Total messaging service usage distribution across verticals


20% 18% 16% 16% 14% 14% 12% 10% 10% 8% 8% 6% 4% 2% 0% 3% 2% 1% 1% 1% 7% 19% 18%

BFSI Software Development Media & Entertainment Education Marketing Services FMCG Travel & Hospitality

IT - Ecommerce
HR Logistics Construction & Real Estate Others

Trends in Consumption of Services through APIs


Consumption of services happens either through generic solutions (such as scheduled application-to many messaging) or customized messaging solutions. While the former is unwieldy for customers who want to integrate such messaging functionality with their applications, the latter is untenable for catering to the prohibitively huge number of customers with custom requirements. A superior solution is the use of Application Programmers Interface (API) which allows any business application to make secure calls into the mobile data services platform for sending or receiving messages, making and receiving calls etc. APIs are progressively making their way into the m-Engagement platform. Platform providers are providing several such secured APIs to enable access to business applications and other operator assets. MIT School of Management Page 74

Growth in the number of API users


The above figure shows the increasing number of API users (linear trend line in dotted grey) and the increasing API usage (linear trend line in dotted orange). Both trend lines demonstrate gradual increase, by almost 50% year on year. This indicates a growing propensity of enterprise application software developers to use APIs for leveraging mobile data services from their applications.

Trends in consumption of messaging services through APIs across Industries


A distribution by vertical allows a top-level understanding of the relevance of the APIs in mEngagement platforms. BFSI, IT-Development (Application Software Developers), Media & Entertainment and FMCG are amongst the largest users of APIs. The Software Development vertical shown in the figure encompasses a broad spectrum of underlying segments, who they serve through either vertical-agnostic solutions or custom applications. Application Software Developers integrate messaging APIs into popular Banking, ERP, CRM and Field Force Applications.

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Usage by Nature of Business


30% 25% 20% 15% 10% 6% 5% 0% 2% 3% 1% 1% 1% 14% 8% 14% 27% 23%

BFSI Software Development Media & Entertainment Education Marketing Services FMCG Travel & Hospitality IT - Ecommerce HR Healthcare Others

Trends in Consumption of services across Geographies


A distribution of consumption of messaging services is shown in the adjoining figure. Consumption from Metros and Tier-1 cities comprise more than 80% of the total messaging volume. This is primarily due to enterprises like banks that swamp the usage of smaller and medium businesses. Hyderabad, NCR, Mumbai and Bangalore are the largest consumers in that order. All other cities are grouped under others, which constitutes 10% of the total usage. Breaking this down exposes consumptions from tier2 towns.

Usage Vs Geographic Distribution for Push Messaging


25% 22% 20% 17% 15% 16%

10%

8% 5% 5% 5%

7% 3% 3%

5%

2% 2% 2% 2%

1%

Hyderabad NCR Mumbai Bangalore Chennai Surat Pune Kolkata Jaipur Aurangabad Ahmedabad Chandigarh Kanpur Hubli Others Page 76

0%

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Geographic distribution of number of newly registered users

The number of new registrations is seen to be the highest from Hyderabad followed by Mumbai and NCR. However, the number of registrations, apart from metros and Tier-1 cities has been found to be more than a third from other smaller cities. The explosion pie chart shows a further breakdown of others category into the next 10 largest cities by number of new registrations. Note that these 10 cities only represent less than 30% of new users. Clearly, a lot of users are known to be small local businesses.

The Short Code hits (in %) indicates the number of short code hits coming in from a circle vis-a-vis the total number of hits coming in from all circles for nation-wide promotional campaigns. On the other hand, the per capita hits indicate the ratio of the number of hits to the number of subscribers in that circle, indicating the percentage of the subscriber population engaging in such services. As enterprises plan their customer communication strategies, these data points indicating the propensity of consumers to respond to mobile engagement services feed into their strategy. For places where promoting through inbound messaging is high, the return on investment will be high. As businesses figure out their communication mix, they can factor these regional variations into consideration.

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Inbound Messaging Usage by Geography

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EVOLUTION OF USE
Permission Based Marketing as a growing means of targeted marketing
It is a given that businesses need a well-defined target audience to promote their products to. In the past, before NCPR regulations came into effect, marketers broadcasted promotional messages to a wide untargeted audience. However, post NCPR regulations, marketers can only send such messaged to those customers who are not in NCPR list. However, amongst such subscribers, some voluntarily opt to receive such messages from specific businesses. Customers, through such permission based marketing, have self-selected themselves into a qualified target audience. Marketing managers can target this audience for higher lead conversions.

Subscribers are no longer bombarded with unsolicited messages, but only relevant and meaningful information chosen by them. The new regulation has accorded subscribers with the freedom to choose what they opt-into. This increases their engagement and response levels to enterprise communication.

Evolution in Mobile Engagement Service Usage Select Examples


The above figure shows a few select examples of users from survey, who started with simple broadcast and transactional messaging and evolved to use increasing levels of engagement. MIT School of Management Page 79

Important Selection Criteria When Evaluating Mobile Applications


Cost will always be a primary factor in the decision making process around any large technology investment while mobile solutions aimed at enterprise environments are increasing, vendors will still need to demonstrate important integration, security, and manageability features to continue to gain ground. Companies are continuing to run lean and IT budgets have not opened up. Mobility has become more strategic, and is increasingly on the radar of C-suite executives as a transformative technology.

Important Selection Criteria When Evaluating Mobile Applications

SaaS based solutions will help the mobile applications market thrive regardless

of the tough economic environment due to lower upfront costs and rapid ROI potential.

Evaluation of Enterprise Mobile Application Value


Perceived value of existing mobile workforce applications varies greatly. Lack of established or

consistent pricing policies for mobile applications remains a key issue. Price remains a critical

concern for broader adoption of mobile solutions.

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CHAPTER 8 RECOMMENDATIONS & CONCLUSIONS

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The increased use of mobile devices has led some organizations to undertake a corporate mobile strategy and reap the benefits of mobility. There are 3 key considerations to establishing corporate mobility: establishing an application development approach, taking advantages of all benefits of mobile devices, and reinforcing mobile security. As a result, the mobile platform should be: monitored and managed centrally, highly automated, device ubiquitous, integrated within the pre-existing corporate infrastructure, scalable, and secure.

Such an initiative is certainly worth the effort, as it enhances return on investment (ROI) by providing more confidence to mobile users, increasing performance from a management and user point of view, and encouraging the use of mobile best practices. With the increased use of mobile technologies in the workplace, establishing a corporate mobile strategy may soon not be an option, but a necessityand organizations that are prepared for it will be well on their way to having a workforce that is mobile, and can work from anywhere, anytime.

Our study reveals that enterprises are increasingly adopting mobile data service platforms to engage better with their employees and end-customers.

The report emphasizes that businesses need a holistic and well-coordinated strategy for mEngagement which complements their other marketing medium. In the past, mobile data services platforms had largely focused on messaging as the means of engagement. We notice that as businesses benefit more and more from existing services, they will use more evolved services to increase reach or to obtain greater lead conversion. Therefore a robust and proven mobile data services platform that can act as a bridge between operators and enterprises is needed. These mEngagement platforms expose mobility as a service that can be used by enterprises and SMEs (Small and Medium Enterprises) for reaching out to their employees and their end-customers. At the same time, telecom operators and platform providers are joining hands to provide such platforms where businesses can create enterprise-grade mobility services to reach their end-customers. Such SelfMIT School of Management Page 82

Serve platforms allow users in various business functions to configure and setup their own mobile engagement services thus eliminating the dependency on external vendors, or the need for long-lead, expensive internal IT projects. These Self-Serve platforms also provide businesses the flexibility to modify their live services based on the usage and engagement with end customers.

RECOMMENDATIONS
Less Relevant is the one of the major factor which stops enterprises from availing these services. So, promotions should be designed in such a way that the enterprise find value in it and hence avail it. If the company wants to increase revenue from the existing services, then it should give more customized services. Promotional calls, e-mails should be more encouraged to make enterprises more aware of their offerings as they are the most effective medium.

KEY SUCCESS FACTORS


A stable multi-channel self-serve platform is critical for helping business leverage the full potential of m-Engagement. A robust partner eco-system is additionally needed to achieve this. Telco assets should be opened up to allow businesses to leverage them. This would allow the operators to quantitatively measure the usage of their network intelligence assets.

THE ROAD AHEAD


The situation calls for a unified mobile data services platform which will provide the environment to unleash the power of mobile for business productivity. If simple, easy to use self-serve platforms are available, M-Engagement will come into the ambit of SMBs and SOHOs. Specialist providers of unified mobile data service platforms will emerge to cater to this need.

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APPENDICES
QUESTIONNAIRE
Dear Sir/Madam,

I, Anu Om Alreja, student of MIT School of Management, Pune and summer intern at IMImobile Pvt. Ltd.; am working on a project to study the awareness and adoption of mobile platform by enterprises. I am forwarding you a questionnaire in this regard and request you to kindly oblige by answering the same. Your genuine response will help me immensely in making a good report and giving recommendations to my company on improving its services to more effectively cater to your needs.

I assure you that information provided by you will remain confidential. It will be used only for the purpose of study and will not be shared with anybody else.

1. Are you aware of enterprise mobile solutions? Indicate your level of awareness on a scale of 1 to 7; 1 being not aware and 7 being well aware. Not Aware 1 2 3 4 5 6 7 Well Aware

2. What is your expectation from service? (Select i.e., tick all that apply) ______ CRM Profile & Network Intelligence ______ Ready to use services (Generic solutions) ______ Customized Solutions (APIs)

3. What is your source of platform discovery? (Select i.e., tick all that apply) ______ Search Engine ______ Phone Call ______ Reference ______ Other MIT School of Management Page 84 ______ Received SMS ______ Online Ads ______ Received E-mail ______ Call Centre ______ Conference ______ Promotion Card

4. Which of the following roles are driving the use of mobile solutions in your company? (Select i.e., tick all that apply) ______ Heads of business units ______ IT Department ______ A committee of senior executives ______ Sales & Marketing ______ Executive management ______ No one in particular

5. Important selection criteria when evaluating mobile applications? Overall cost: Less Important 1 2 3 4 5 6 7 More Important User friendliness: Less Important 1 2 3 4 5 6 7 More Important Integration with existing enterprise applications: Less Imp. 1 2 3 4 5 6 7 More Imp. Ability to customize: Less Important 1 2 3 4 5 6 7 More Important Level of pre/post implementation support: Less Imp. 1 2 3 4 5 6 7 More Imp.

6. Please indicate how important each of the following business benefits are for mobile computing: Reduce cost of doing business: Somewhat 1 2 3 4 5 6 7 Extremely Important Gain competitive advantage: Somewhat 1 2 3 4 5 6 7 Extremely Important Increase sales: Somewhat 1 2 3 4 5 6 7 Extremely Important Improved customer relations: Somewhat 1 2 3 4 5 6 7 Extremely Important Reduce time to accomplish business tasks: Somewhat 1 2 3 4 5 6 7 Extremely Imp. Increase efficiency: Somewhat 1 2 3 4 5 6 7 Extremely Important

7. Type of messaging service you use or would be interested in using? (Select i.e., tick all that apply) ______ Promotional ______ Transactional

8. Have you been using any enterprise mobile solution? ______ Yes ______ No

If yes, which mobile solutions? (Select i.e., tick all that apply) ______ Push SMS ______ Inbound Messaging MIT School of Management ______ Transactional ______ Voice Messaging ______ Contest Polls ______ Other Page 85

9. Are you interested in any mobile solution? ______ Yes ______ No

If yes, which mobile solutions? (Select i.e., tick all that apply) ______ Push SMS ______ Inbound Messaging ______ Transactional ______ Voice Messaging ______ Contest Polls ______ Other

10. What was your companys most important reason for moving to enterprise mobility solutions? (Select all that apply) ______ Faster & ubiquitous access to company data, services & applications ______ Improve collaboration among employees ______ Improve sales & sales support ______ Improve customer interaction & service ______ Richer user experience ______ Provide analytics data to executives ______ Consolidate multiple devices into mobile one

11. Your opinion of enterprise mobile application value? (Select any one) ______ Their value exceeds their price ______ They are priced just right ______ They are priced too high by 10% ______ They are priced too high by 25% ______ They are priced too high by over 25% ______ Not sure

Thank you for taking out time to respond to this questionnaire.

Yours sincerely, Anu Om Alreja

Student Catalyst IMImobile Pvt. Ltd. Email: Cat_412008@in.imimobile.com MIT School of Management Page 86

REFERENCES
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