Mobile devices have today become ubiquitous and, therefore, provide an ideal medium for introducing value-added services (VAS) such as mobile learning (m-learning), e-banking and m-commerce. Mobile penetration, which has been on a steady rise, has made significant inroads into the rural areas of late. Several operators, realising the vast potential for VAS in these segments, especially in mlearning, have started offering m-education services such as English lessons, dialin tutorials, question sets, vocabulary, general knowledge tutorials, result alerts and education to both urban and rural users. These operators usually partner with VAS companies to develop their applications.
For instance, service providers such as Reuter Market Light (RML) and Nokia Life Tools have started to focus on services specifically designed to address the needs of the rural population. RML is one such example where farmers are willing to pay Rs 85 per month for agriculture-related information alerts since access to information is key to decision making and helps to add significant value to earnings from their yield.
Though VAS’s current contribution to the operators’ gross revenues is a meagre 9 per cent, this is expected to grow significantly in the future. According to industry estimates, the mobile VAS segment is expected to log in a turnover of about $8.4 billion in 2013-14 from its 2009 level of $2.8 billion, contributing 18-20 per cent to operator revenues. This, however, will depend entirely on the effectiveness of the service offerings, especially the content offered as well as the ability to reach people in the remotest areas of the country.
However, VAS has so far not been very effective in the rural markets. With the segment still at a nascent stage, some of the issues that need to be addressed for achieving a reasonable degree of success include low bandwidth availability, which makes it difficult for operators to offer high quality content. Another bottleneck is that the cheaper handsets that make basic telephony desirable and accessible in rural areas do not necessarily support VAS offerings such as m-learning.
However, the scenario is changing. Increasingly, low-end mobile phones are being designed to offer various applications. This could serve as a key driver promoting the VAS market in the country, which has so far been limited to ringtones and ringback tones. Also, until recently, service providers had been catering largely to the needs of the urban user. But with rural India offering the next level of growth for the mobile sector, operators are shifting their focus to the rural market. In addition, the upcoming launch of 3G mobile services across the country will not only address the issue of low bandwidth but will also fuel the demand for mobile VAS, which is set to become a game-changing platform for the delivery of learning content.
Among the operators, Tata Teleservices has been actively involved in tapping the rural market through its VAS services. Its GSM brand, TATA DOCOMO, has launched the “English Seekho” initiative through its mobile portal Tata Zone. The service, currently available in 24 cities, offers users conversational English language lessons on their mobiles through an interactive voice response application that guides them through audio clips.
State-owned operator Bharat Sanchar Nigam Limited (BNSL) has also undertaken a similar initiative. Its “Learn English” programme, designed by EnableM Technologies and OnMobile Global, teaches spoken English through simple stories and situations that a common man can relate to. Subscribers can select their level of learning based on their proficiency in the language. The package also includes practice tests available in nine Indian languages.
Mumbai-based mobile content provider EnableM Technologies is currently offering its multiple m-learning solutions to five other operators. It is also in charge of managing the learning portfolio for Nokia and is involved in developing some of its content. EnableM is now planning to venture into Bangladesh and other emerging markets, which have a huge unrealised potential on account of their low bandwidth and non-standardised dissemination of content.
Reliance Communications has been highly active on the mobile VAS front through its mobile portal RWorld. In 2003, the company first launched an meducation service, m-school, whereby teachers and parents could access the school’s databases, and register queries and complaints. The operator provides exam results, career counselling, and etiquette and grooming sessions as a part of the offering. Its highly successful Grameen VAS initiative, designed for the rural populace, also includes English learning based on translations. The company is now planning to collaborate with large foreign players that have a presence in the country to promote m-learning in the social sector.
Other players offering innovative mlearning services include Aircel, which has launched its mGurujee application. The service allows users to access content in the areas of engineering, management, civil services and medicine besides skill development, vocabulary and general knowledge tutorials.
With operators making inroads into m-learning applications, the future for the segment looks bright. The implementation of mobile number portability in the country will provide a further boost to the VAS segment as operators rely on VAS services to differentiate their product offerings and lower their churn rates. The popularity of touchscreens and large screen-formats, a greater degree of interaction due to higher bandwidths, a good network and connectivity and newer applications in this space are likely to be the key enablers in taking mobile growth to the next level in the country.
