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Contents
Foreword Technology A glance at the Technology Industry in India Ascent of the cloud: Adoption of cloud computing to accelerate Banking the unbanked: Mobile banking set to gain momentum e-commerce 2.0: Theme-based specialists to drive the next wave Medical Industry: Technology providers to act as the anchor for collaboration Beyond the digital curtain: Emergence of tier 2 cities Media A glance at the Media Industry in India Print media: The regional trend Radio: A resurgence journey Television: The star of the show Digital media: Dawn of the internet economy Telecommunications A glance at the Telecom Industry in India The $100 Smartphone to go mass market Low cost tablets war begins and accelerates Low cost (devices & data plans) to induce data explosion m-Health, m-Learning, m-Banking: No longer a pipe dream Endnotes Contacts
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Foreword
We are pleased to present the second edition of Deloittes Technology, Media and Telecommunications (TMT) Predictions for India. This report is released in conjunction with Deloittes global TMT Predictions report and presents our view of the key developments over the next 12-18 months that are likely to have significant medium- to long-term impacts for companies in TMT and other industries in India. We would like to stress that latter point this year - across every global industry, knowing what will come next in TMT trends has become a key competitive differentiator. As in 2011, this years report is published as a single report rather than separate ones for each of the sectors. Deloittes view is that developments in each sector are now so inter-linked and interdependent that TMT executives need to be cognizant of key trends across all the sectors. The goal of our report is to catalyze discussions around significant developments that may require companies or government to respond. We provide a view on what we think will happen, what will occur as a consequence, and what the implications are for various types of companies. We never however presume that ours is the last word on any given topic our intent is to kindle the debate.
Our methodology which is reviewed and updated every year is predicated on: Rigorous Research: We use both primary and secondary sources, fusing both quantitative and qualitative analysis, based on in-depth discussions, polling of individuals and reading of hundreds of articles. Robust Testing: Globally, we test out the emerging hypothesis with Deloittes clients, analysts and at conferences throughout the year. Innovation: We publish only perspectives that we think are new or counter to existing consensus. Accountability: Our aim is to provide clear endpoints so that our accuracy can be evaluated annually. Today, the TMT industry is one of the most dynamic industries in India. Advances in technology have resulted in disruptive changes in the way businesses function. From colossal changes caused by digital convergence to a rapidly changing mass media landscape, companies in the TMT sector confront a swiftly changing marketplace. We hope you and your colleagues find this years Predictions relevant, and our analyses insightful. We thank you for your interest and as always, welcome your feedback.
Technology
technology to isolate and plug leakages in the utilities industry by transitioning to smart-grids is another potentially large application for cloud computing in India. Historically, Indian SMBs have been relatively slower in technology adoption. This has been largely attributed to the high upfront capital costs, which is a significant barrier to IT adoption. The on-tap nature of cloudbased models squarely addresses this issue, and SMB adoption is growing on the cloud. Indian SMB cloud services market overview The Indian SMB cloud services market, which includes hosted infrastructure and web presence services, is estimated at INR 5.5Billion (USD 123mn) in 201113. Of this total, hosted infrastructure has the largest share, with INR 4.3Billion (USD 97mn), and web presence has the remaining INR 1.2Billion (USD 26mn). While these numbers are not very large in absolute terms, they highlight that SMB adoption is growing and SMB spends now account for 20-25 per cent of the total cloud market in India. Currently only eight per cent of Indian SMBs have hosted the business e-mail setup; they are predominantly using free e-mail services. This factor
presents a significant scope for the large SMB segment to benefit from transitioning to hosted business email. We expect a growing number of SMBs to graduate to hosted PBX systems and online applications. Key segments of SMB users with noticeable traction on the cloud include manufacturing and a wide range of internet based businesses. Other SMB segments with significant untapped cloud computing potential include the education sector and independent professionals (lawyers, CAs, consultants, etc.). In contrast to the trend in large enterprises, SMB users are more likely to explore public-cloud strategies. Public cloud usage is also expected to become more pervasive on the back of an increasing base of individual (non-corporate) internet users. The total number of internet users in India has crossed 100M14. While connectivity is still not ubiquitous, the large and growing mobile subscriber-base in India coupled with the proliferation of internet ready devices (at declining price-points) and increased operator emphasis on data services is driving rapid growth. Over the next 3 years, the number of internet users in India is projected to cross 300M, with over 100M accessing the internet on their mobile phones15.
Bottom line Cloud computing adoption in India is poised for an accelerated growth. While there is broad-based potential in the near term, it would be the large enterprises that will dominate this growth segment for some time at least. Customers have a growing number of options to choose from, allowing them to match the complexity of their cloud solutions with their own IT maturity/comfort levels. It will help to have strong internal champions who understand the business needs as well as the strengths and weaknesses of the cloud solutions offered to drive an efficient transition. Cloud vendors need to demonstrate reliability and sustainable economics of their cloud offerings, to reinforce the decisions made by early adopters and convert skeptics. Vendors will also need to adopt a consultative approach while working with customers exploring the cloud, to guide them through the process.
Rationalising technology and security standards Transactions up to INR 5,000 (enhanced from INR 1,000 to INR 5,000) can be facilitated by banks without end-to-end encryption. The risk aspects involved in such transactions may be addressed by banks through adequate security measures. Easing of procedures related to transfer of funds for disbursement in cash Liberalising the cash pay-out arrangements for amounts being transferred out of bank accounts to beneficiaries not having a bank account and enhancing the transaction cap from the existing limit of INR 5,000 to INR 10,000 subject to an overall monthly cap of INR 25,000 per beneficiary. Enabling walk in customers not having bank accounts (for instance migrant workers) to transfer funds to bank accounts (of say family members or others) subject to a transaction limit of INR 5,000 and a monthly cap of INR 25,000 per remitter. Enabling transfer of funds among domestic debit/ credit/pre-paid cards subject to the same transaction/ monthly cap as at the previous point mentioned above. Mobile banking to gear up in rural areas Most major banks operating in India have also stepped-up their mobile banking services. While early adoption has been slow, increased customer education and promotions by the banks are expected to help drive greater adoption of these services. However, these efforts are more likely to influence urban demand for mobile services. The real potential of mobile banking in India lies in driving access to financial services across the rural landscape. Several ventures have emerged which include ventures by large corporations like Bharti-SBI and the Vodafone-ICICI JV. Other platforms/initiatives spearheaded by certain banks include mobile-enabled Kisan Credit Card promoted by several Indian banks and initiatives by various microfinance institutions (MFI). But alongside have also emerged certain other players in the ecosystem, providing technology platforms and managed services suited to the needs of rural mobile banking. These companies include Atyati that enables branchless expansion of banks and also mobile based micro credit delivery. EkGaon Technologies uses image and voice recognition to authorise transactions whereas A Little World uses Near Field Communications (NFC) for
banking transactions. The handset makers along with the corresponding application developers would also play a role in creating a conducive ecosystem. It is projected that mobile banking usage in India will grow from 10 million active users in 2009 to over 53 million active users in 2013, representing a compound annual growth rate of 51.8 per cent19. Once this reaches the tipping point, it could further accelerate to span the ~ 900 million mobile subscribers in the country. According to a recent study by BCG, it is estimated that by 2020, 29 per cent of all Indian adults could be users of mobile financial services; thereby reducing the
unbanked in India by 12 per cent. While the current financial inclusion rate of 45 per cent should gradually increase to 53 per cent by 2020, driven by overall development and economic growth, the additional 12 per cent inclusion from MFS means financial inclusion in the country could instead reach 65 per cent by that year. With wider MFS adoption, the number of people with formal savings accounts could increase by 142 million by 2020, increasing transaction volume by 32 per cent. In addition, 123 million can be added to the number of people using formal bill payment products, increasing payment transaction volume by 31 per cent20.
Bottom line Strong fundamentals and a supportive regulatory environment have set the stage for wider adoption of mobile banking in India. Innovative technology applications will help further accelerate adoption and drive access to financial services to the unbanked rural population in the country. The relatively slow take off of the concept has been primarily due to the lack of clarity on which party in the value chain would act as the hub. With the coming together of many of the large banks and large telecom service providers, we believe that India is at the cusp of a growth in Mobile Banking services.
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In the near term, we can expect many such sites to go through a few levels of step changes in their business model. The first as already witnessed is a wave of more exclusive deal sites; sites that were into flash deals, moving onto a more generic deals for everyone model. The next level would be that the difference between standalone deal sites and group deal sites is blurred as they move into each others territory. The third would be deals only sites moving into the space of aggregation or pure e-tailing. The e-tailing success story In the last three years, the number of e-tailing sites has grown exponentially in India. Most of these companies either provide a wide range of products (clothes, electronics, books etc., at one site), or cater to specific niche products (leather accessories, books), or focus on specific segments like childcare, lifestyle, etc. Historically, Indian sites with broad-based product portfolios have been relatively more successful against their global contemporaries. This may be attributed to
the fact that the online buying comfort index can yet be best described as fledgling; the consumer tends to stick to a select few sites for their purchases, which in turn impedes traffic to product specific sites vis--vis their broader counterparts. The segment specific websites are trying to blend the best of both and develop a loyal customer base. Given that shopping is often centred around a specific theme where the shopper tends to buy a set of related items, a segment based shopping arcade has a lot of appeal. Such an approach would also address the issue of redundancy in the broad based sites. A segment focussed site is more likely to attract such customers who have a set of connected needs. We expect many new companies to emerge addressing such specific customer segments or those which have a broader portfolio, adopt the concept of shop within a shop and venture in segment specific e-tailing. Many product specific e-tailing stores would also try to get into this logical extension of their business.
Bottom line E-commerce 2.0 in India is set to become bigger and better. In the Deal/Coupon segment, we expect transformational changes to happen among the ones which can survive the intense price war. While difference between exclusive deals, standalone deals and group deal sites will disappear, most of the survivors would evolve to become sites offering direct e-tailing along with the deals. Competition will drive consolidation among players in the broad based segments. The product specific players would have to find a niche where scale, recurrence of transaction and customer loyalty can be achieved. The theme based players would strike a balance between the two existing models presenting customers with a more effective online shopping experience and, hence, would be dominant amongst the new set of players.
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Media
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In 2012, Deloitte predicts that regulatory reforms by way of replacement of fixed license fee regime with a revenue-sharing regime, transparency in allotment of licenses by way of auctions etc., will help in the resurgence of the radio. The radio segment in India has taken approximately 50 years to grow from infancy to adolescence. In 2010, the total size of the radio sector was estimated to be about USD 0.22 billion. It is expected to grow at a CAGR of about 20% to USD 0.44 billion26. The expected Phase-III of radio licenses, which are planned to be auctioned, would open up newer markets for private FM players. The tier 2 and 3 cities in India have huge potential for such players. More than 800 new stations could hit the airwaves following the roll out of new licenses in the near future. The sheer number of newer stations that have come up gives an idea of the potential reach of the medium. The ad and marketing world will need to rethink strategies while finalising campaigns for their clients. The new stations will have newer audiences and newer opportunities await all the broadcasters and all the businesses which operate in these regions. The Phase-III policy involves extending FM radio services to about 227 new cities, in addition to the present 86 cities, with a total of 839 new FM radio channels in 294 cities. The private FM broadcasters will need funding for the expansion or launch and can now look at attracting
foreign capital. Liberalisation of the cap on foreign holding, in the form of Foreign Direct Investment (FDI) and investments by Foreign Institutional Investors (FII), has been enhanced to 26% from the previous 20%. With the advent of the radio chip on the mobile phones, the penetration of the radio has increased from 59% in 2007 to 77% in 2011 in the four metro cities of Mumbai, Delhi, Kolkata and Chennai. FM listenership averages more than 60%27 in the mega cities, and this phenomenon could well be repeated in the semi-urban areas. Since India has one of the fastest growing mobile handset market in the world, listening to the radio on the mobile is a new and popular method for the youth. With expansion on the anvil, the ad spends too should rise. However, the trend of the earlier years will continue and no drastic upswing in spending is expected. The ad spends using this medium will grow around 20% annually. This again depends on the general state of the countrys economy. Given the FMs inherent transmission limitations, the regional flavour to ads will predominate. Bottom line Just as new players explore different and unique fields of doing business in the media world, the new age of radio will most certainly attract them. The established broadcasters have an opportunity to expand their reach and business when the new FM channels will ride the airwaves. Growth for the broadcasters could be in the region of 10-15% on an annual basis, depending upon the business model and availability of funds with the players.
In 2012, Deloitte believes that television will continue to dominate as a media source. It will still remain the most popular way to consume videos, television content and films in spite of the content being increasingly available on other mediums like tablets and smartphones. The television industry in India has gained momentum due to liberalisation and enhanced enthusiasm of the broadcasters who are increasingly looking at innovative ways to cash on the success of the entertainment and media sub-sectors. The television industry is projected to grow at a CAGR of 16% to USD 13.9 billion by 201528. Television digitised with new distribution technologies. Television digitized with new distribution technologies There are nearly 138 million households in India who own a television. Cable penetration has reached 80% with the help of the Direct to Home (DTH) platform. The DTH segment itself comprises 28 million homes29. Digital television with pay channels will soon outdo the analog and become the platform to stay. New distribution technologies like DTH, Conditional Access System (CAS) and IPTV hold the future of this industry as increasing digitisation will radically alter the way in which consumers receive channels. Also, these distribution platforms will give broadcasters direct access to consumers providing not just routine content but also customised value added services (like video on demand). As a result, the average revenue per user may increase significantly. The other stream of revenue for broadcasters, namely, ad revenue may see some stagnation as compared to the past couple of years. This is more due to the general health of the Indian economy and financial climate. As the cost of borrowing increases, it affects the general sentiment; in such situations, it is advertisement spends on television that is first axed, as it is an expensive medium. By an estimate, the television advertisement segment will be the third largest in Asia by 2016, after Japan and China30, with the growth of ad spends on television expected to be in the range of 12-16%. With cricket still dominating the sports in India, the business of telecasting these events still has some value in it though the same has declined in the past few
months due to the recent performances of the home team. Telecasts of cricket matches will continue to be popular with the masses and will ring-in the revenues for the channels. HD broadcast the future beckons The advance in technology by way of telecasts in High Definition (HD) has given a boost to the distribution segment, including DTH. As broadcasters move more and more channels on the HD platform, a case of derived demand is set to be played out once more. Given that flat screen television is the recognised name for hardware now, cashing in on HD broadcast seems likely in the next few years. 3D television is still like a new born babe, yet to take its first step. As with the print medium, regional television channels are also on the upswing. Given our cultural and regional diversity, the content of these channels is just as diverse, ranging from news to music to general entertainment. Another development among broadcasters is packaging channels to target niche audience like teenagers. The success of such channels remains to be seen as all viewers are spoilt for choice with more than 150 channels available on each set on an average. Language diversity helps monetise content. Producers and distributors are garnering more revenue by dubbing content into regional languages; thereby, ensuring that the product has a wider audience base, and an enduring appeal, especially if it is content rich. Bottom line When watching television the viewer is passive, and smartly produced marketing content works well to create a demand. The more the repetition, the more the desire that builds up in the mind of this passive viewer. It is an established fact that advertising only on the television cannot help in the success of the product or service. A well devised campaign which considers the digital platform and outdoors amongst other mediums is what is required in which the commercial spot of television will be one of the most affective. The broadcasters will continue to be spoilt for content, with general entertainment and films taking the major portion of the schedules. Sports will be close behind and content in HD will be sought after. There may still be some more time to rethink the investments planned for the 3D segment as it is a wait-and-watch game here. The television manufacturers will continue to have steady growth figures with increased sales in semi urban and rural markets as the television set moves from occupying bulky space on the furniture to a sleek hang on the wall.
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Telecommunications
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tariffs is shaping up whereby leading operators are raising voice tariffs -- worn out by price wars over the last 2 years, reducing margins and high 3G and BWA spectrum costs. India has predominantly been a voice market with the lowest tariff rates in the world. Reducing revenues from voice services is forcing operators to concentrate on data services for better margins. At present, data services in the country account for an approximate of
15%37 of wireless revenue; thereby creating enough room for expansion. The next wave of telecom growth is likely to emerge from rural India where 3G enabled VAS services could be the biggest contributor. Operators would increasingly use the voice platform as well as localised content to ensure relevance and widespread adoption in the rural zones. Operators could gain alternative revenue streams and differentiate themselves through VAS services as voice has become significantly commoditised.
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OS may be closed, curtailing the ability to download apps; however, this may not matter to customers interested in low-end smartphones. What is possible on these devices is still far superior to what most feature phones offer. The $100 smartphone will also likely include a basic camera with at a minimum 2 megapixel resolution that is just about enough for basic snapshots in natural light and ad hoc videos.
Likely features of $100 smartphone e-mail Instant messaging Bluetooth Web browser 3G / Wi-Fi Social media apps MP3 player Camera
Touchscreen
FM Radio
Due to the lack of widespread 3G data network coverage in some target areas, $100 smartphones will often come preloaded with a suite of apps around astrology, bollywood, cricket, stock prices, devotional content that a typical Indian user would be most likely to use and value. Mapping and navigation features may also be included to drive sales, but weaker digital mapping data may limit utility.
Bottom line Handset vendors are likely to continuously revise their $100 smartphone offering; a specification that was perceived as market leading at the start of 2012 may well be considered market trailing by year-end. The price of many components is steadily falling for example the cost of touch screens has dropped by about 30 per cent annually in the recent past. This will enable the specifications/features of the $100 smartphone to continue to rise in coming years. App developers should note that $100 smartphone users might not download a lot of content and may be even less likely to pay for it. Some users will have less technical ability than existing smartphone owners and could find downloading apps over the air more mystifying than magical. And some may not have data network access. In addition, app developers may need to create variants of their apps that are suitable for lower priced smartphones that come with relatively low-powered processors and localised regional content. Growing sales of $100 smartphones are likely to cause downward pressure on prices for the whole supply chain. Component manufacturers may come under growing pressure to lower their prices; this could give component suppliers an opportunity to break into the smartphone market.
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Competition in the low-cost tablet space is set to intensify even further in the next few months, as global brands such as Lenovo, Huawei, etc., also introduce inexpensive models priced at as low as `10000. New entrants in the tablet markets will have to prove worth of the product quality over price value Consumers may prefer established brands over local ones considering that the specifications are identical with the same price point, making it tougher for new companies to sell their products. Mostly all the tablets in low cost price range, run on operating system (OS) Android, have a seven-inch screen and support 3G and/ or Wi-Fi connectivity. Drivers of tablets in 2012 could be greater penetration of 3G services, likely launch of 4G, usage of email, availability of information on the go, useful apps, etc. Indian consumers are price sensitive but at the same time they look for value for money. The defining line for the success of any tablet in the cluttered market will depend not only on the price point that it offers, but also on the services and applications that come along with the device. Another important success factor for the success of any low cost tablet will be the usability and the user experience. For example, although the Aakash40 tablet secured -heavy orders, but the user
experience does not appear to be worthwhile. Tablet makers should aim at a set of features and applications for the target audience; a bulk of features/applications usually results in poor user experience due to limitations of the low-cost hardware and hardly any customisation of the underlying OS. As with other consumer markets, key success factors for tablets in India will be extendable memory support, USB connectivity and a considerably long battery life. Companies need to achieve a fine balance between cost and features of the tablets and educate the consumer about the availability of the same. Common features available in most of the tablets 7-inch display 1.2 GHz processor 512MB RAM USB ports Front & rear camera Expandable memory Android 2.3 OS TFT WVGA touch display 4GB internal memory
bundling offers could drive sales of tablets in India as telecom operators subsidise the hardware costs. In India, where PC penetration41 is very low, cost effective tablets might be a good solution to connect people to internet and in turn increase internet and broadband penetration. The only way of taking a step forward in this direction is by putting in India specific content, including local language newspapers, music, astrology, health books, etc. Although enterprises in India are exploring to adopt the (bring your own device) BYOD model, it is extremely unlikely to pick up in 2012. This will likely affect the adoption of tablets in enterprise domain and hence tablets will continue to work alongside computers and smartphones. Three main factors are driving tablet adoption in the enterprise market: The most apparent factor driving tablet adoption is that many consumers initially buy tablet computers as personal media devices, but quickly discover they are also useful for work. Second, certain industry verticals seem poised to start using tablets in fairly large numbers over the course of the year; in fact, trials are already underway. The education, retail, manufacturing, and healthcare industries are considered the most likely early adopters, primarily owing to the tablets ease of use, long battery life, lack of moving parts, minimal need for training and rapid application development environment. Third, the tablet form factor itself is driving adoption in the boardroom and in the industries like healthcare and retail. Unlike laptops and smartphones, both of which create an obvious physical barrier between the user and others in the room, a tablet can be placed flat on a conference table and accessed unobtrusively.
3G
Wi-Fi
Bluetooth
3G adoption to work as an impetus for tablet demand in urban markets 3G enabled tablets might see a greater adoption in urban and semi-urban areas due to the availability of 3G services in these areas and bundled data plans available from leading telecom operators. This will likely lead to a price war as leading telecom operators gear up to offer cheaper data plans bundled with tablets for building long term relationship. On the positive side, these
Bottom line The revolution in android tablet market will continue in 2012 as many Indian and global companies will compete to produce cheaper tablets. Vendors should ensure that applications and whole ecosystems help increase the overall user experience on the tablet for increasing the market size. The high-end tablet market will continue to be dominated by the global leaders and might also see reduction in tablet price for higher adoption among the niche customer base in 2012.
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Leading IT companies, mobile device manufacturers, telecom service providers, and government have acknowledged education, healthcare and banking as the priority sectors. Recognising that technology would be a pivotal enabler in enhancing access to these sectors, the companies are looking to update product compatibility with a tablet and smartphone based solutions, e.g., smartphone ultrasound device45. The NTP 201146 envisages connecting all the village panchayats with high speed broadband through optical fibre network. The fundamental need for realising tele-diagnosis, tele-consultancy and tele-education is this high speed broadband. It could empower the rural beneficiaries by expanding their use of e-government. Healthcare Around 80% of Indias medical specialists cater to 20% of the population. This leaves about 750 million Indians in semi-urban and rural India without direct access to specialist care47. Technology would aid delivery of healthcare services at the patients doorstep in remote rural areas. Mobile phone manufacturers are now keen to power their glossy gadgets to deliver healthcare solutions. The clarity in voice and video can make a huge difference while providing healthcare consultancy over mobile. With more than 850 million mobile users, healthcare applications are also becoming popular in the application stores. There are around 17,000 health apps available on smartphones, but how many are useful and are actually downloaded is questionable.
Healthcare providers
Medical insurance
Technology providers
Government
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Mobile health apps and services will not take off without the involvement of various players from healthcare and insurance companies to governments and the patients themselves. The concept of the handset as a health diagnostic tool is closer to reality than ever as the healthcare sector itself undergoes a major shift from being hospital-centric to patient-centric in 2012. Several leading hospitals have embarked on this journey to deliver healthcare services to millions in the remote areas through mobile devices and high speed broadband and Deloitte believes that these efforts will further intensify in 2012. However, the growth of telemedicine and its ability to bridge the urban-rural divide in healthcare delivery has been hampered by the high cost of information and communication technologies. Banking The financial institutions, private and public are struggling to provide banking infrastructure in all the regions of a vast country like India. They face several challenges such as geographic dispersion, consumer identification, management of costs per transaction, consumer awareness and education. Banks, which are being pushed by the regulator to become ambassadors of financial inclusion, are also grappling with how to look beyond the conventional branch model to penetrate deeper in a viable manner. Banks increasingly need to find innovative ways of on-boarding new customers and servicing existing ones.
Cheaper
Simplicity
Accessibility
Efficiency
Mobile banking has the potential to bring banking services to a whole host of unbanked people having access to mobile. Regulators like RBI and TRAI, several banks, mobile service providers and phone manufacturers have collaborated to take m-commerce to the unbanked population. 2011 saw numerous strategic partnerships between banks and telecom companies. Mobile banking would create win-win situation for all parties in the value-chain by creating an interoperable ecosystem and profitable business models. Deloitte believes mobile phones48 provide enough obvious value that customers will decide to start using mobile banking. The favorable regulation, unique identification initiative, consumer readiness to accept
Banks
Technology providers
Distributors/ Retailers
Card networks
Government
technology, electronification of payments would augur well for the mobile money payment. The mobile payments market has gained traction in recent years, owing to higher penetration of handsets in comparison to coverage of population with banking services and benign regulatory environments. The acceleration of mobile remittance services alongside new mobile payment49 scenarios highlights the range of opportunities for the mobile phone to redefine the movement of money by lowering costs, increasing convenience and reducing fraud through Business Correspondent model. Education India has the third largest education system globally, with a network of 1 million schools and 18,000 higher education institutes.50 Yet these are not enough to meet the demand of the education in the country, both in terms of quality and quantity. Also the employability of the Indian youth is often questioned by experts due to lack of vocational training. The education sector is definitely viewed as the most important sector for socio-economic development of the nation. It is a sector that is under the spotlight of government, educational institutes, service and manufacturing companies to undergo complete transformation. It is this vision that is attracting huge investments from foreign and domestic players who might not be even connected with education segment per se. Connecting 1,500 knowledge institutions51 (educational and research) across the country would mean that
the National Knowledge Network of the government should be riding on an ultra-high speed network. Only then can participating institutions seamlessly connect to it at speeds of 1 gigabyte or higher. This will enable distance learning where teachers and students are able to interact in real time. 2012 is likely to see several European and American universities tying up with Indian institutes to offer high quality distance education and also making significant attempts to develop vocational skills. Companies will continue to make efforts to create specialised low-cost tablets aimed at the education sector. Bottom line All the parties in the healthcare, banking, education and telecom industry value chains have to drive deeper into rural markets to keep the growth coming. The common challenge faced by all these sectors is the lack of infrastructure to provide quality services to the classes and masses. This is where the telecom industry can help to bridge this gap and act as the carrier of these services. Its time for banking offerings to make the same evolutionary progress that automobiles, entertainment devices or mobile phones have made. This means offering choice, becoming smarter, better packaged, cheaper and easier to use. Through alliances with the right partners from the device, telecom, network, applications and retail space, Indian banks could turn this vision into reality. Greater health awareness, insurance awareness, patient age profile, lifestyle changes, and so forth, will all drive growth in the healthcare sector, which is likely to witness more and more private-public partnership mode in 2012 as leading hospitals expand to the semi-urban and smaller cities to fulfil the growing demand for specialty care in these areas. There is a huge potential in the education sector that is waiting to be tapped. The year 2012 is likely to gain more traction in m-Learning in terms of content, device, applications, and delivery methods. Increasingly more companies are likely to venture into this market and provide high quality learning experience for all age groups from building a strong foundation in kindergarten to energising intellect in higher education.
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Endnotes
1. http://www.nasscom.in/indian-itbpo-industry 2. FY 2011-12 Outlook: Software and services export revenues expected to grow by 16-18 per cent and domestic revenues to grow by 15-17 per cent; NASSCOM Press Release 3. http://www.microsourcing.com/news/201111/nasscom-predicts-significant-growth-for-indias-it-bpo-industry.asp 4. The IT/ITeS sector alone will generate as many as around 3 lakh jobs in 2012; http://timesofindia.indiatimes.com/ business/india-business/Happy-new-year-for-hiring-5-lakh-jobs-likely-in-2012/articleshow/11332538.cms 5. IT-BPO in India: Bracing for a tough year ahead; http://www.brecorder.com/home/br-research/ single/421/44:44/2129:it-bpo-in-india-bracing-for-a-tough-year-ahead/?date=2011-11-24 6. Indias third party data center services market to reach US$671 million by 2012-end; http://www.datacentres. com/news/indias-third-party-data-centre-services-market-reach-us671-million-2012-end 7. China, India and Malaysia are experiencing the most rapid adoption of SaaS-based enterprise applications in the Asia/Pacific region; http://softwarestrategiesblog.com 8. Deconstructing the CLOUD: The New Growth Frontier for Indian IT-BPO Sector; NASSCOM-Deloitte Study 2011 9. Transactions and Complex Selling: Strong Catalysts of Cloud Computing Growth; http://softwarestrategiesblog. com 10. That we shall adopt the Cloud in a huge manner is a certainty Shankar Aggarwal, Additional Secretary, DIT; http://www.expresscomputeronline.com/20110615/interview01.shtm 11. India has more than 600 television channels, 100 million pay-television households, 70,000 newspapers and produces more than 1,000 films annually. http://www.ibef.org/industry/mediaentertainment.aspx 12. Is India ready for cloud TV?; http://thegadgetfan.com/mobile-smartphones/is-india-ready-for-cloud-tv.html 13. Parallels Survey Results On INR 5.5 Billion Cloud Services Market: http://efytimes.com/e1/74088/fullnews.htm 14. Internet in India 2011, Study by IAMAI 15. The Indian internet user base crossed the 100 million mark in November. In the next three years the number of internet users will be in excess of 300 million. Interestingly, about a 100 million of these users will access internet on mobile phones. http://economictimes.indiatimes.com/opinion/interviews/next-airtel-will-be-born-out-of-datak-srinivas-president-consumer-business-bharti-airtel/articleshow/11290797.cms 16. http://rbiguidelinesinda.blogspot.com/2011/07/rbi-mandate-banks-to-open-branches-in.html 17. http://www.cgap.org/gm/document-1.9.49435/Access_to_Financial_Services_and_the_Financial_Inclusion_ Agenda_Around_the_World.pdf 18. http://www.trai.gov.in/WriteReadData/trai/upload/PressReleases/849/Press_Release-Oct-11.pdf 19. http://www.imediaconnection.in/article/457/Digital/Mobile/mobile-banking-in-india-the-next-big-thing.html 20. The Socio-Economic Impact of Mobile Financial Services; BCG 2011 21. Exchange4media 22. Registrar of newspaper 23. Press Information Bureau 24. Registar of newspapers 25. Equitymaster.com 26. www.indianbusiness.nic.in 27. Radio Establishment Survey - Universe Update 2011 (RAM) 28. www.indianbusiness.nic.in 29. Equity master.com 30. The TV India TV Industry Report Act Two, by Media Partners Asia Ltd. 31. VCCEdge 32. Irctc 33. Facebook 34. Telecom Regulatory Authority of India - The Indian Telecom Services Performance Indicators for the period July September 2011 released on 9th January 2012 35. Telecom Regulatory Authority of India - The Indian Telecom Services Performance Indicators for the period July September 2010 released on 12th January 2011
Technology, Media & Telecommunications India Predictions 2012 | 33
36. India Electronics demand in country to be $500 bn in 10 yrs: Pilot, http://www.indiasemiconductorforum.com/ showthread.php?1824-India-Electronics-demand-in-country-to-be-500-bn-in-10-yrs-Pilot 37. 3G fails to impress subscribers Times of India on Nov 14, 2011 http://timesofindia.indiatimes.com/tech/news/ telecom/3G-fails-to-impress-subscribers/articleshow/10724987.cms 38. India Brand Equity Foundation (IBEF) http://www.ibef.org/industry/telecommunications.aspx accessed on 22 January 2012 39. Android News Hub - http://androidos.in/android-tablets-in-india/ 40. India Today Review: Aakash tablet http://indiatoday.intoday.in/story/aakash-tablet-review/1/164487.html 41. Internet penetration expected to rise with 3G services roll-out http://www.livemint.com/2011/02/23223924/ Internet-penetration-expected.html 42. Smartphone sales jumped by 34 per cent in third quarter of 2010: IDC India on December 30, 2010 http://www. afaqs.com/news/story.html?sid=29216 43. Telecom Regulatory Authority of India - The Indian Telecom Services Performance Indicators for the period July September 2011 released on 9th January 2012 44. Telecom Regulatory Authority of India - The Indian Telecom Services Performance Indicators for the period July September 2011 released on 9th January 2012 45. A real look inside the body by GE Healthcare, http://www.ge.com/innovation/vscan/index.html 46. Draft NTP 2011- A triad of policies to drive a national agenda for ICTE by TRAI 47. Healthcare providers eye 3G tech for the next leap in telemedicine on 2nd May 2011 http://www.livemint. com/2011/05/01215605/Healthcare-providers-eye-3G-te.html?atype=tp 48. India can leapfrog cheques to move straight into electronic banking http://articles.economictimes.indiatimes. com/2012-01-26/news/30666847_1_internet-banking-electronic-transactions-electronic-banking 49. RBI removes Rs 50,000 cap on mobile payment transaction http://articles.economictimes.indiatimes. com/2011-12-23/news/30550983_1_national-payment-corporation-reserve-bank-rbi 50. Indian Brand Equity Foundation http://www.ibef.org/industry/educationtraining.aspx 51. National Knowledge Network http://nkn.in/connectedinstitutes.php accessed on 25th January 2012
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Contacts
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