Data Strategy – General Management

Indian Telecom 2016

Shivi Sharma

Barriers for Increasing Mobile Internet Usage in the Current User Base

Better Data PlanKnowledge equals higherusageOnly 12% of the urbanmobile internet users visittheir operators’ websiteto recharge, pay bills oruse other services

Common concerns citedby offline and onlineindividuals alike includeInternet-based crime,misuse of personalinformation by individualsand institutions, andgovernment intrusion

Location Impacts Experience

Users face quality and reliability

issues indoor

Users face issues related to app usage, and session failures while outdoors and while commuting

Users in mid-size and small cities face issues of inconstant speeds and app usage while

outdoors

Users have web page load time

issues indoor

Reasons given for not increasing mobile internet usage

Consumers need a clear personal additional benefit of increasing the data usage. The lack of added value attributed to the service continues to act as a deterrent to its adoption.

Unable to distinguish speed difference, they see no advantage in switching to a high speed device.

Customers are unable to make a clear judgement while deciding on their data plans. If consumers are confident in their understanding of what is offered, they tend to perceive better value from it.

53%No

Incremental addition in

Value

48%No Difference

in 2G & 3G speeds

36%Unavailability

of value for money plans

Indian Urban Smartphone Mobile Internet Users

68%63% 62% 63%

Data Plan Understanding

x2

67%

33%

Very Difficult or Difficult to

Understand

Somewhat Easy and Very Easy to Understand

Aware Not Aware

Very Difficult

or Difficult

to Underst

and

Neither Difficult

Nor Easy

Somewhat Easy and Very Easy

to Understan

d

Very Easy to Understand

Consumer Understanding of Data Plan Option

55%

20%

16%10%

Understanding Data Pack Impact Usage

Users’ Awareness of services like “Create your own plan” from operators

Source: (1) BCG-The Rising Connected Consumer in Rural India, 2016

(2) Ericsson Consumerlab-The changing mobile broadband

landscape India, 2016

Imp

act

Control

Lack of language literacy

Lack of relevant vernacular digital content and services

Low income of consumer

Lack of adjacent infrastructure like : electricity etc.

Lack of cultural or social acceptance

Total cost of ownership of device

Cost of data plan

Lack of mobile internet coverage

Lack of awareness about data plans to Retailers

Lack of awareness of the internet or relevant use cases

Lack of digital literacy

Hig

h

HighLow

Barriers for increasing mobile internet usage in Semi urban and Rural India

Low Income and

affordability

Infrastructure

User Capability

Incentives

Major focus area of company should

be on improving

In User Capability and Incentives

category

Average monthly cost of 500Mb data plan is around $3.4 which is approx. 2.6% of the GNI. Hence though the absoluteprice of data plans are low, their penetration in low income segment is less. To improve this, internet is required tosubstitute share of wallet of other categories like entertainment, education etc. so that user can afford new data plans.

Impact of Barriers on the growth of Data usage Vs Control Telcos have on the barrier

Low

Target Segment for driving Data user count 1

8 -

30

yea

rs3

0 -

40

yea

rs

Female Homemaker

Farm Owner / Student

Farm worker / Labourer

Self Owned Business

Service Worker

MatureUsers

AmbitiousUsers

Late Adopters

Next Wave

Segment Size Internet penetration

19%

15%

8%

36%

30%

>4

0 y

ears

16%

33%9%

*Rest 22% of the population is dark on internet

Assessing the shift of Rural Aspiration from VAS to Data Plan

A Disguised market research was conducted in the Pataudi village,Gurgaon to assess whether the people

aspire to spend on the Data Plans

• Results from the survey clearly revealed that people in rural aspire to use data over various available VAS

• Hence by focusing on incentivising and user capability building companies can drive data user count

Data48%

Cricket10%

Cinema11%

NA5%

SMS 8%

Missed call6%

Jokes6%

Dailer tones

6%

Source: (3) McKinsey & Company Can India lead the mobile-Internet revolution, 2016

Objective What? How? Impact?

Mobile Digital Literacy(Awareness & Acceptability)

• Create awareness by concentratingon personal benefits of digitalcontent on mobile

• Suggest use cases based oncustomer profile which willincentivize usage of data plan

• Make use of Video Vans to createawareness and digital literacy in therural market

• Wet Sampling to demonstrate utilityto prospective customers by lettingthem access internet using companyconnection installed in video van

• A representative will facilitateconsumers to access internet on theirdevice and experience the differencethe internet can make in their daily life

• Make user aware of thebenefits they are foregoing by not utilising features available to them

Way Forward

Characteristics Key Activities Needs

Ambitious

User is a young male college graduate. He belongs to the less affluent family than mature user and aspires to move to city for work . Spends 2 to 3 hours daily online using an internet enabled phone.

• Social networking• Gaming /media• Emailing

Hygiene -Outdoor internet coverage

Delight - Ease of billing and recharge

Next Wave (Female

Homemaker)

Though not a college Graduate, she is the decision maker in herhousehold and prefers branded products. They have generallyjust started going online and spend only 15mins a day on internetusing internet enabled mobile phone.

• Social networking• Listening to music

Hygiene –Indoor internet coverage

Delight – Customer Support

Target Segment for driving Data user count

Objective What? How? Impact?

Knowledge Partnership Locally

(Awareness)

• Build a new Knowledge partnernetwork tapping the youthentrepreneurship model in the ruralmarket

• Leverage mobility to reach anincreasingly mobile audience andprovide an enhanced on the goexperience

• Drive growth by building personaltouch with the Next Wave andAmbitious users who tend to stay attheir residence and expectconvenience at their doorsteps

• Primary Activity of the partner willbe ‘Local Digital Content Creation’and facilitating services and supportin regions where it is difficult toreach

• These knowledge partners willeducate the local people aboutbenefits of using internet and willalso make them aware about thecompany’s latest data plans

• Create a platform for PanchayatMinutes of Meetings which keepseverybody updated by creatingsocial group for village by creatingapplication for same(AnApplication for all villages dividedby a separate code for each village)

• Female Youth Entrepreneurswould help female homemakers incontent creation locally (E.g..Sharing Videos of recipes) and willeducate them about other internetuse cases by leveraging theirconnect in the social groups.

• Customers will be able to takebetter informed decisions

• Motivate existing internet usersto switch from other provider tothe company

• Service levels in CustomerSupport, Billing and Recharge willbe enhanced

• Meet local needs of bothcustomer and channel partner

• Currently rural and semi urbancustomers act more as a contentconsumer. This strategy will helpin creating a shift to contentcreation by local rural peoplethereby increasing the data usage

• This strategy will also help inreaching nook and corners whichare currently not reachedthrough existing distributionchannel

Beat the cost and Inculcate the ‘Habit’

Give additional data if consumersconsume whole of it in a short span oftime. This will encourage higher usageand thus exploit their habit.

• For Instance, “Get 50% data free ifyou consume your data within 50%of the validity period”

• Encourage people to use datawhen they actually don’t, similar tolines of ‘Night Minutes’

User will explore more use cases ofinternet usage which will ultimatelylead to increased data consumptionand habit building

Way Forward

Thanks