Roti, Kapda aur Mobile

If I wanted to sum up the changing fabric of India over the last 20-25 years, this is what I would say.  While roti and kapda have been popular political slogans right from the 60’s as basic and essential needs for a population, mobiles have become a key requirement for people. And why not; calling rates in India are cheaper than in comparison to any place in the world, handsets and even smartphones are available within budget and tower penetration has been improving. One big reason for this is the advantage of a large population base; the numbers compensate for operating revenues.

Mobile phones have changed the way India has functioned over the last 20 years of its existence in India. It started off as a luxury which only the super-rich could afford. No ordinary Indian could afford a handset resembling a brick costing above Rs 5000 and paying Rs 16 the moment they said hello. But this was an era when number of networks were few and competition had not set in yet. Orange

The first winds of change came in from Reliance which came in with its captive low cost handsets and lowest calling rates for the day. They targeted corporates and roped in the biggest names with their massive employee strengths to come through with corporate offers that gave them scale as well as steady clientele.

The next boom came around early 2000s when Airtel was launched and came in with a sweeping offer of free SMS every month. This was revolutionary in terms that mobile phones unlike fixed lines were no longer for voice alone and SMS was the choice of communication which was most analogous to an internet messenger. And as always, even at times when a call would cost Rs 1, an SMS was free.

This coinciding with cheaper handsets entering the market which set the trend for mobile phone rising higher in the must have list. Finally, when TRAI scrapped the free SMS schemes and limited discounting, some felt was there scope to innovate beyond calls and SMS at 50p. Enter Tata Docomo and its game changer per second billing. In reality, this is not discounting at all… in fact this is expensive that what other players offered; but the perception of value won the game.

Running parallel to this was the handset market with Indian market flooded with low cost options through joint ventures with East Asian companies. Between 2008 and 2010; there were a total of 26 handset companies which entered India. Everyone had a phone; the maid, the watchman. The neighbourhood vegetable vendor now took orders on the mobile phone and delivered on the door step. You could now call a taxi cab as the driver had a phone. STD calls were now dropping as migrants could call their relatives in rural India at places where power and water may be a problem, but telephone networks were always present.

During this time, I used to avidly follow the blog of an ex-Nokia guy; Tomi Ahonen. In my view, he was among the first guys who had predicted how the mobile phone screen would be the next big thing. At first, the idea seemed a distant dream considering India was still in the WAP days with abysmal subscriptions. But how right he was. In the next few years, the personal space of the telephone screen was doubling faster than the traditional computers and with the advent of smart phones is almost looking to replace takeover the market completely. Mobile based internet access has been increasing ever since. Today there is more revenue being generated through mobile based internet services as compared SMS. Just a few numbers- 185Mn mobile internet users in India alone. It kind of justifies the reason why an internet platform like facebook has bought a small mobile social App like Whatsapp. 

Blackberry was considered a serious business phone until BBM became a college hangout. It was now a scenario where a business person carried a top of the line Blackberry and a collegian had a low end model with almost every functionality as the top end. Dedicated widgets for applications were a rage when launched. But all this was just a phase as we see it today.

The rules of the game have changed and the biggest game changer has been Android. The open software platform and Apps for android rendered Symbian as an ancient relic and Android, Windows and iOS became the mobile softwares by choice. Today, it is not surprising for me to find people from modest backgrounds flaunt a high end phone as a combined effort of low tariffs, cheaper handsets and a host of free Apps to cater to everyone. It is astonishing to find that globally, 24% of all internet access is through Android (phones and tablets), 18% is iOS (all devices including PC) and Windows is only 9% (all devices including PC).

Where will we go next is anyone’s guess. But one thing is for sure, what is the ordered of the day, will be a page in history soon. What Motorola and Nokia were once; Samsung and iPhone are today. Mobile technology is changing so rapidly that the jump from iPhone 4 to iPhone 5 has been about 6 months. Mobile phones are now a need and it won’t be long when nomophobia (phobia of having no mobile connectivity) will be as prevalent as common cold.