Emerging TechnologiesEmerging MarketsEntrepreneurship

Rajesh JainNetCore Solutions

Mumbai, Indiawww.emergic.org

Think of India as a Microcosm of Emerging Markets

PC and Internet Numbers• PCs: 30 million (growing 8+

million / year)– Equally split between Homes,

SMBs, Large Enterprises+Govt

• Internet: 60 million (growing 15+ million/year)– 8 million broadband (256

Kbps) connections– 50% access from cybercafes– Ads: Rs 700 cr (3% of media

spend)– Transactions: Tickets, Trades,

Matrimony

Mobile Numbers• Red Market

– 100 million users (+10 mn/year)– ARPU of $10

• Non-Voice ARPU of $1.50– Mix of Enterprise and Youth

• Blue Market– 300 million users (+75 mn/year)– ARPU of $2

• Non-Voice ARPU of $0.05– Mix of Urban and Rural

SMS Use: 50-60% of base (200+ million)WAP Use: 4-5% of base (15-20 million)

2

3

The Internet-Mobile combo can open up big new Opportunities in Emerging Markets

1. Online Education2. Mirror World3. Solve Monetisation Problem for Internet

Portals4. Digital Services Operator5. Mobile Social Networking6. Mobile-PC Continuum

1. Education: Rs 100 per month, One Hour daily, Learn-to-Learn

How can we do it?4

5

2. Mirror World: A Virtual Replica of the Real World along Multiple Dimensions

• Start with maps• Add a layer of establishments (buildings, schools, retail

outlets, roads, etc.)• Overlay this with the voter databases with names of people,

their addresses, gender and age• Add actual voting numbers• Integrate socio-demographic and development data that is

available from census, various government sites (and collated by independent companies)

• Buy contacts lists of people with information of their digital identity (email IDs, mobile numbers)

• Continuously update database based on user interactions, thus enhancing people profiles

3. Interacting with our Real Social Networks

Globally unique digital identity

(1) PUBLISH (to Web)

(3) VIEW and DISCOVERY

(4) PUSH DELIVERY

(2) SUBSCRIBE

6

7

4. Solve the Monetisation Problem for Internet Portals

• The Internet Portals business is about three things:1. Reach: the raw numbers for a basic free service (on

desktop and mobile web)2. Ads: how to monetise the free services attention via ads3. More: how the free user can be multi-monetised either

through premium products (subscriptions) or via transactions (commerce)

• Internet Portals have mostly focused only on 1 and 2 • Web Ad Revenue is not good enough to cover the

costs or to scale operations• This limits the portals capability to scale • The challenge is to also think about how to build 3

5. Digital Services Operators to create Telco-independent ecosystem

Payment Collection

Distribution (Reach)

Publishing Platform

Compelling Services

8

Diverse Services to generate Rs 50+ ARPU

Content AppStores

Digital Identity and Presence

Push Commerce

Connected Experiences

6. A Mobile-PC Continuum with Connected Devices and Services

• Network-dependent Device-Service Combo– End-to-End Solution– Analogous to Amazon Kindle

and iPhone-iTunes-AppStore– Become a Data MVNO– Target top-of-pyramid

consumers– Generate higher ARPU

• Enriched Experienced across different Verticals– Computing, Reading, Education,

Entertainment, Gaming– A Mobile-PC Continuum

• Wireless-enabled Network Computers

• eReaders– Books– Education– News

• Tablets– Browsing

• LBS Devices– Tracking: People, Asset,

Vehicle– Traffic Alerts

• Connected Gaming Consoles

9

10

Learnings of an Entrepreneur:I Wish I Knew Then

• Watching the Cashflow– Keep a watch out for collections – Monitor aging reports of debtors

• Thinking Multi-Monetisation– Try out multiple different options– Get quick learnings as to what works (and doesn’t)

• Numbers Discipline (for revenues and costs)• Quarterly Reviews– Ideally, with external Board Advisors

11

5 Questions for Entrepreneurs

1. Is the Market that we are in Large enough to ensure our growth?

2. Can we ensure that the Base business continues to grow?3. What are the Boosters that we can add through new ideas /

initiatives / recruitments to incrementally grow the current business?

4. Are there Adjacent Markets that we can tap into?5. What are the Breakthroughs / disruptive innovations that we

can do that can create or amplify future growth opportunities - either in the current market or adjacent markets?

Think of these as 3B (Base, Boosters, Breakthroughs) +2M (Market large, adjacent Markets)