Snapshot of the project:

‘Potential of mobile applications market in India’

1
© Tavess Private & Confidential
 1 Market overview
This chapter includes the market overview, leveraging quantitative and secondary analysis, and highlights the following topics:
Overview of mobile applications and its market size;
Historical growth in the mobile application space;
Growth forecasts.

2 Key trends, drivers, and challenges

The section highlights the key trends prevailing in the mobile applications landscape categorized according to the following
sub-segments:
Mobile entertainment services such as video; gaming; music; and ring tones;
Informative services such as news;
Mobile browsing and mCommerce.
It also elaborates on the key drivers and challenges in the mobile applications market, and highlights the implications of these
trends on mobile operators.

2
© Tavess Private & Confidential
 3 Competitive landscape
This chapter includes information on the key mobile VAS players in the market and highlights the following:
Mobile VAS revenues of key players;
Mobile VAS subscriber base and growth rates;
Mobile VAS market share of key players.

4 Consumer survey
Through a consumer survey, Tavess highlighted the mobile applications demanded by users segregated on the basis of the
following:
User demographics;
Gender;
Income groups;
Profession.

3
© Tavess Private & Confidential
 5 Market opportunity
After analysing all mobile applications in detail, this chapter brings to light the market opportunity and highlights the areas
which can be of interest to the client. The analysis is based on number of factors, some of which are:
The market size of different mobile applications, growth forecasts, current level of adoption, and affordability;
The current competitive scenario prevailing in the mobile applications market.

6 Best practices from global markets

Tavess further analysed the global telecom market with respect to mobile applications launched and best practices adopted.
This includes:
 Mobile applications launched in similar emerging markets such as India and which applications saw maximum adoption;
 Case studies of companies who ventured in the Indian market in the mobile applications space.

4
© Tavess Private & Confidential
 Mobile Applications: Market Size and Growth

11%
Mobile Applications Historical Growth CAGR (2006-10)

Gaming
Messaging Browsing

Music

7%
Video
mCommerce

News
Ring tones

3%
15% 26% 37%

Circle size Mobile Applications Growth Forecasts CAGR (2011-15)

denotes Market Size
5
© Tavess Private & Confidential
 Current market size Future growth Affordability Usability for target Competitive
segment Scenario
Video

Gaming

Informative
services

Music and ring

tones

Browsing

mCommerce

Key focus areas Strong Weak

6
© Tavess Private & Confidential
 Mobile music is the most demanded entertainment service by the Indian consumers
Mobile music with ring back tones and ring tones being in high demand followed by single track music
downloads.

Indian gaming companies are investing in launching mobile based gaming platforms
Mobile gaming providing users access to multiple games while incorporating social networking
functionalities.

Indian market is seeing a change in the mobile TV and video landscape with the launch
Mobile TV of 3G services in 2011. These services are monetized through advertisements rather
than subscriptions.

Indian telecom operators have been focusing on localization of entertainment services

Content by offering video, music, and gaming content in several regional languages. To market
localization its services in different Indian states, operators are offering mobile entertainment in
local languages with the regional flavour.
These trends were further analyzed to study the implication of these trends on mobile operators
7
© Tavess Private & Confidential
 ABC’s Mobile VAS Subscribers (M) and Growth Rate ABC’s Mobile VAS Subscriber Share and Market Growth

16 14 15 40% 25.0% 20%

14 12 18%
20.0% 18% 19%
12 10 30% 16% 15%
10 15.0%
8 20% 13% 10%
23% 10.0%
6 9%
4 14% 10% 8% 5%
5.0%
2
7%
0 0% 0.0% 0%
31-Mar-07 31-Mar-08 31-Mar-09 31-Mar-10 31-Mar-07 31-Mar-08 31-Mar-09 31-Mar-10

ABC subs Growth % yoy ABC share % Growth in market subs %

Competitive Landscape, Mobile VAS, 2010 Conclusions

XYZ • ABC’s market share has increased only

18%
marginally over the last few years
• Market growth is tapering out so ABC’s
subscriber base is growing at a decreasing
DEF ABC
25% 57% rate

8
© Tavess Private & Confidential
 Mobile gaming users according to age (m) 2010 Mobile gaming users according to profession (m) 2010
Total number of mobile gamers (m)
90
Total number of mobile gamers (m)
90
80 80
80 80

70 70

60 60 57

50 50 44
40
40 35 40

30 24 30
23
20 18 18
20 20
12
10 10 7

0 0
0-18 18-21 22-29 30-39 40-49 50-59 60+ School College Salaried Self Professionals Stay home
students students employees employed moms
Age

Similar graphs were included for mobile gaming user base segregated according to gender
and income levels.

This analysis was replicated for all major applications such as mobile video, mobile music,
browsing, mcommerce, etc.

9
© Tavess Private & Confidential
 Players Mobile Applications launched Consumer adoption
Maxis Malaysia Maxis has partnered with Malaysia's Limkokwing Medium
University of Creative Technology to deliver educational
materials through the iPhone. Starting February 2010,
Limkokwing's courses of one year duration will
incorporate the iPhone 3GS and its connective capabilities

Telefonica Telefonica is partnering with Wikimedia to develop and Medium

deploy a mobile version of the Wikipedia encyclopedia.
The mobile version of this application is expected to be
rolled out across all the markets of Telefonica.

Movistar South & Movistar is providing mobile financial services to its High
Central America customers in South & Central America. The services will
include mobile money transfer, mobile commerce, bill
payment, and mobile banking.
10
© Tavess Private & Confidential
 11
© Tavess Private & Confidential