Surpassing every other country by a huge margin, India majorly accesses Internet via mobile devices.
Mumbai-based financial advisory firm Avendus Capital, compiled this report that has the potential to alter the very basics of the way Internet is used, accessed and content therein consumed. As compared to the world average of about 20 – 25%, more than 50% of Indians access Internet primarily from the mobile devices only.
The reason for such a high percentage of population relying on their mobile devices is quite evident. Propelled by the exponential rise in sales and usage of smartphones, coupled with falling prices of large screen Android and other tablets, it has become quite simple to get online while travelling. Besides, desktop computers are grounded and relatively a lot more expensive to own and maintain.
Telecom companies are the ones that stand to gain the most from this trend. Internet on mobile is majorly accessed via Mobile Data Standards like EDGE and 3G. Besides, ultra–high speed mobile broadband standard 4G has almost arrived. With access to potential speeds like 21.6 Mbps (3.75G) and 100Mbps (4G), why would users choose to be tethered to wired broadband whose national average hovers about 1.5 to 2 Mbps?
However, Indian Telecom players will have to cautiously watch over another disturbing trend which content providers have adopted very eagerly. App Stores like Google Play and Apple’s App Store have bypassed the Telecom Players to offer their content directly to consumers, using the GSM network merely as a pathway. Such a route severely restricts the revenue generation potential via the lucrative Mobile Value Added Services (MVAS) stream cautioned Aashish Bhinde, executive director at Avendus Capital,
“Until recently, the only revenues generated through mobile in the digital space came from ‘on-deck’ services offered by telcos through their portals, popularly known as mobile value added services (MVAS). Globally, the trend has shifted towards growth of ‘offdeck’ services that are offered by content developers directly to consumers without going through telecom operators. This has been largely driven by the advent of smartphones and third party app stores like iOS and Google Play”
Mobiles and Tablets may not possess the ability to process high resolution streaming services yet, but the data standards, as well as the processing power of these portable devices is improving almost on a daily basis. Hence, all the internet businesses now have a clear choice where to orient their content as well as advertisements. What do you think?
Image credits: li