Mobile Market in India

Mobile Phones Market In India 2011
Mobile Phones Market In

India
A Economics Study Report
Submitted in Partial Fulfilment of the
Requirements
For the Degree of
Master of International Business
Submitted to:
Submitted
by :
Dept. of Commerce
Tapas
Tiwari
Tsetan
Angmo
Delhi School of Economics
Varun Kaw
Delhi University
Rahul Shah
Vaibhav
Gupta
Vikram
Singh
Dr. Sumati Varma
MIB, Department of Commerce, Delhi School of

Economics
Page|1
Mobile Phones Market In India

2011
DIFFERENT TIERS OF
MOBILE PHONE
13
MAJOR HANDSET MAKER
COMPANIES IN INDIA 13
TAPPING A GLOBAL
CONTENTS
OPPORTUNITY AND
BRIDGING THE MOBILE
GENDER GAP 14
INTROD
UCTION
4
MOBILE
HANDS
ETS V/S
FDI
5
MOBILE
TELEDENSIT
Y
6
CASE STUDY: MERA

MOBILE, MERA SAATHI 14
Spreading the
message 14
Benefits 14
Building a more
sustainable future
15
SURVEY RESULTS:
16
More Findings of
the survey:
16
SPECTRUM POLICY
RATE
17
OF
GROWT
OVERALL INVESTING
H OF
MOBILE ENVIRONMENT
DENSIT
Y
18
7 RELIGION AND
MOBILE PHONE
PRODU (HOW THEY MAKE
CTION
MONEY ?)
20
AND
EXPOR MOBILE PHONES
TS
8 AND ECONOMICS
GROWTH
20
DRIVER
S AND
CASE 1: CATCH THE
TREND
FISH 20
S
9
Calls and effect
DRIVER
S
POLICY
AND
INITIATI
VES
21
CASE 2 : SMARTPHONE
APPS FUEL BUSINESS 22
Attract new
customers
22
Improve customer
PRODU
service 23
CT
Create a revenue
SEGME
opportunity
NTATIO
N AND
23
DIFFER CASE 3: MOBILES FOR
ENT
FIGHTING POVERTY
23
TIERS
OF
MOBILE MARKET:
MOBILE BEHAVIOURAL
PHONE ECONOMICS
S
PERSPECTIVE
13
25
WHAT IS THE
BEHAVI
OURAL
ECONO
MICS
REVOL
UTION
ECONOMICS AND
EXPLORATION 25
Choice overload
OURAL
25
Heuristics 25
Endowment
25
25
BEHAVI
Defaults 25
MIB,
Economics
Department of
Page
Commerce,
|2
Delhi School of

2011
d 27
Hyp
erb
olic
disc
oun
ting
25
Fra
min
g
bias
es
Heuristics 27
Endowment
27
Defaults 28
Hyperbolic
discounting
28
Framing biases
28
Risk/Loss aversion
29
APPENDIX A:
25 PRIMARY SURVEY
Risk QUESTIONS 30
/Los APPENDIX B:
s
BEHAVIORAL
ave ECONOMICS SURVEY
rsio
QUESTIONS 31
n
APPENDIX C:
25 FEEDBACK ABOUT
BEHAVI PRESENTATION
OURAL
ECONO
MICS
AND
BEHAVI
OURAL
BIAS
25
BEHAVI
OURAL
ECONO
MICS
AND
CONSU
MERS
26
32
BIBLIOGRAPHY
35
TABLE OF
FIGURES
FIGURE 1: FDI
PHONE 5
IN
MOBILE
Anc
hori FIGURE 2: MOBILE TELE
ng DENSITY 6
Effe FIGURE 3: PRODUCTION
ct AND EXPORTS OF MOBILE
26
PHONES IN INDIA
FIGURE 4: DISCARDING
Too
THE
PHONE
16
Muc
h
FIGURE 5: CONSUMER
Cho DECISION MAKING
ice 27
or FIGURE 6 : HYPERBOLIC
Cho
DISCOUNTING
28
ice
ove FIGURE 7: NORMATIVE
rloa POLICY MODEL 29
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
|3

2011
mobile users. We are in an

era where users buy
INTR mobile phones not just to
ODU be in touch, todays youth
it to express their
CTIO use
thoughts,
for
social
N
networking, to show their
interests, play games,
read news, surf on the
A lot of internet, listen to music,
people chat instantly with friends
think that & families and even check
the new their bank balances. There
economy are
various
phone
is
all manufacturers
providing
about the handsets.
internet. I
think that The Indian mobile industry
it's being is the fastest growing in
fuelled the world and India
by
the
continues to add more
internet mobile connections every
as well
as by cell month than any other
phones, country in the world. The
telecom boom in the
digital
assistant country provides great
s,
and opportunity to handset
the like - manufacturers and the
but that hottest segment for these
it's really manufacturers is the entry
about
level segment. Among the
customer fastest growing sectors in
s.
the country, telecom has
been zooming up the
Patricia Seybold
growth curve at a fiery
pace. The last few years
saw India adding many
firsts to its list of
Today
mobile achievements. Some of
are-the
world's
phones these
lowest
call
rates
(1
have
paisa/sec),
fastest
growth
moved
the
number
of
beyond in
subscribers
(15-20
million
their
primary per month), fastest sale of
role
of a million mobile phones (1
week),
the
world's
voice
cheapest
mobile
handset
communi
cations (`777), and the world's
and have most affordable 3G phone
graduate (`4,999).
d
to
become The market in India is
dominated by mobile. For
an
essential mobile we have 840
entertaini million-plus users, unlike
many
other
markets,
ng
mobile
is
becoming
the
device
dominant device for voice,
for
for value-market. Factors such as

added
market potential and timing
services, and speed of adoption are
and
of great importance for
increasin telecom
operators
for
gly
forcapacity
planning.
mobile Understanding
the
Internet evolution of mobile phone
also. Itsmarket and its likely future
somewha trend is equally important
t similarfor policy makers.
to what
we sawIndia is currently facing the
in Japanonslaught of cheap subin 1999standard Chinese phones,
where, which occupy as much as
because 25 per cent of the market,
of
thethanks to the liberal import
limitation policies of India. The boost
to exports to mobile
of
broadban phones and their parts will
local
d
andencourage
computin manufacturing, which is
the
best
answer
to
g.
Theres acompete with the cheap
sub-standard
Chinese
whole
host
ofphones imports. Mobile
services phone exports from India
could double as a result of
being
Ministry
created Commerce
around granting 2 per cent Focus
mobile. Product Scheme (FPS) on
mobile phone exports in
An
Foreign
Trade
effective the
of
Indian
manage President
ment ofCellular Association said
mobile that the special incentive
services accorded to mobile phone
requires exports could result in the
doubling of exports in the
an
understa next 3-5 years from the
nding ofannual level of `13,000
crore to `14,000 crore if
the
factors other enabling policies are
put in place. India is
that
a
base
for
underlie already
worldwide
quality
the
evolution manufacturing of mobile
of
thephones.
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
|4
MOBILE HANDSETS V/S FDI
3000
250
7
2500
FDI in USD(million)
2000
Sum of handset
sold(millions)
1500
1000
653
680
500
11617.5 129
0
32
66
85
94
2003-04 2004-05 2005-06 2006-07

2007-08 2008-09 2009-10 2010-11
which can be seen in

the following years
Figure 1: FDI in Mobile
with the increase in
Phone
number of sale of
mobile handset. The
Source : http://www.dot.gov.in
FDI
limit
being
increased from 49%
to 74% being the
The sale of mobile handsetmajor reason for the
in
FDI.
have increased from a minorincrease
important
17.5 million in 2003-04 to 223 Some
millions in 2010-11. Majorfindings :
increase being in the year
2010-11 followed by 2009-10
1
This
with the sale of about 55
inflow of FDI
million handset.
provided in
roads
for
many
The major amount of FDI
companies
(Foreign Direct Investment)
which
being in telecom industry in
started their
production in
years from 2007-09 of about
India.
$5000 millions, which provided
2
Only
the major opportunities for
5
local
different companies to come in
manufacture
Indian market. The results of
rs
in
200
8
and
the
nu
mb
er
sta
nds
at
28
no
w!
., and Motorola.
Samsung
Electronics Co. Ltds
share rose marginally to
9.7% from 9.5%.
5
LGs
share
dropped from 7.2% to
6.4%,
6
Of the local
manufacturers,
Micromax leads the
race.
There are many

mobile
players
like
Nokia,
Motorola,
Samsung,
Sony
Erission, L.G., HTC,
Apple,
Blackberry,
Alcatel and many more.
3
Fall
in
the
mar
ket
sha
re
of
No
kia,
L.G
MIB, Department of
Top
5
local
manufactures
are
Micromax,
Karbonn
Mobiles, Spice Mobiles
Ltd, Videocon Industries
Ltd
and
Lava
International Ltd.
Commerce, Delhi
School of Economics
Page|5

2011
ers in India reached

874.68 Million, thereby
the overall TeleMOBI making
density in India 73.11 at
LE
the end of May, 2011.
TELEWireless subscriber
DENS Total
base (GSM, CDMA &
ITY FWP) increased from
826.93 Million in April 2011

to 840.28 Million at the end
of May 2011, registering a
growth of 1.61%.
The main objective of the
graph is the diffusion of
mobile phones in India to
inform
the
larger
discussion of managing
the
communication
services as well as to
assist analysts concerned
about
assessing
the
impact of public policies in
the evolution of telecom
sector.
There has been 25-fold
increase
in
mobile
subscriber base in a span
of just five years from
2000-01
to
2005-06.
During the same period,
mobile-density
has
increased more than 23fold from 0.35 in 2000-01
to 8.12 in 2005-06.
Figure
2:
Mobile
Tele
Density
An effective management
of mobile services requires
an understanding of the
factors that underlie the
evolution of the market.
Source :
Factors such as market
http://www.t
potential and timing and
rai.gov.in
speed of adoption are of
great
importance
for
telecom
operators
for
planning.
Accordin capacity
Understanding
the
g to
TRAIs evolution of mobile phone
Telecom market and its likely future
Subscript trend is equally important
ion Data for policy makers.
for the
month
The saturation level of
ending
mobile-density
for
a
May
2011, the country is likely to depend
on whether it is an early
Total
Telephon adopter or a late adopter
of
telephones.
Early
e
adopters
(developed
Subscrib
countries) are expected to
have
phones (due to high
lesser
switching cost) whereas
reliance late adopters (developing
on mobile
MIB,
Economics
Department of
Page
Commerce,
|6
Delhi School of

2011
between
2011-12
and
2012-13 (when mobilecountries density is around 70).
)
areDuring the year 2015-16,
expected there will be 90 mobile
to have
phones for 100 people in
lesser
reliance the country. Analysis show
on mainthat the numbers of mobile
phones will exceed the
line
telephon number of people in the
es (duecountry by 2019-20
to
high
infrastruc
In this study, the growth of
ture
the mobile phone and
cost).
mobile-density in India has
been analyzed using SRate shaped growth curve
models.
The
analysis
of
growt shows that the high growth
phase of the diffusion of
h of mobile
phones
will
mobil continue till 2015-16. It is
eestimated that there will be
densi 90 mobile phones per 100
inhabitants in India at the
ty
end of year 2015-16. The
The
number of mobile phones
analysis
will exceed the number of
reveals
people in the country by
that the
2019-20.
Total
mobile
inflection
phone
demand
is
point (the
projected to increase from
maximum
800 million in 2010-11 to 1
growth
billion by 2012-13. Growth
rate
point) ofwhich is not expected to
the curveslow down anytime soon is
will occurnow moving to the rural
areas.
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
|7

2011
million from a mere 144

million in 2002-03 at a
compound annual growth
rate (CAGR) of 28.3
percent. Mobile phone
PRO production revenue reach
DUCT $13.6 billion by 2011 from
$4.9 billion in 2006, a
ION CAGR of 26.6 percent.
AND The growth in production is
EXPO driven mainly by the
mobile
RTS expanding
subscriber base in India
and
favorable
local
government
policies
promoting local electronics
manufacturing in India.
India is the world's secondlargest telecom market
after China, with the total
wireless subscriber base
crossing 850 million at the
end of June, 2011. By
2020, the handset demand
is projected to reach 350
million a year. At present,
Indian mobile handset
market is estimated to be
in around 130 million
handsets per annum. It
added that 510 million
handsets are estimated to
be manufactured in India,
during the same year.
In India, handsets are
categorised
as
high,
medium, low, and ultra low
cost ASP devices. The
Figure medium ASP segment is
3:
Producti likely to be the fastest
on and growing segment in terms
Exports of volume, affordability of
of
feature-rich handsets is
Mobile
Phones also expected to be a key
of
handset
in India enabler
adoption. The government
Source :
should create a sizeable
http://www. export promotion fund for
dot.gov.in
the telecom equipment
and services export and
handset exports from India
may
be
included
in
Mobile
bilateral trade agreements
phone
with emerging markets in
productio
regions such as South
n in India
Asia, Africa, Latin America,
increased
Russia
and
Eastern
to
512
Europe.
Delhi School of
Economics
MIB,
Department of
Page
Commerce,
|8

2011
of
mobile
phone
technologies, both in terms
of
performance
and
DRIV miniaturization. As a result,
many
other
ERS unlike
appliances, users change
AND their mobile phones on
TREN average every two years.
Consequently,
DS
replacement
handsets
today represent about 80%
all mobile
phone
Drive of
purchase.
rs
This rapid growth has

The
mobile been possible due to
various
proactive
and
phone
phenome positive decisions of the
and
non
isGovernment
unique incontribution of both by the
public and the private
the
histories sector. The rapid strides in
of
boththe telecom sector have
been facilitated by liberal
the
telecomm policies of the Government
unication that provide easy market
access
for
telecom
and
consume equipment and a fair
regulatory framework for
r
electronic offering telecom services
to the Indian consumers at
s
markets. affordable prices.
In
less
than
aPolicy and
decade, Initiatives
people
1.Regulatory Framework:
have
adopted The Telecom Regulatory
mobile Authority of India (TRAI)
was set up in March
phones
on
a1997 as a regulator for
sector.
The
massive Telecom
TRAIs
functions
are
scale.
recommendatory,
This
is
regulatory and tariff setting
about
in telecom sector. Telecom
three
Disputes Settlement and
times the
Appellate
Tribunal
size
of(TDSAT)
came
into
the
existence in May, 2000.
television TDSAT
has
been
or
PCempowered to adjudicate
markets. any dispute
Growth
has been1
Between a licensor
fuelled by and a licensee
the
spectacul 2
Between two or
more service providers
ar
evolution
B only those services, the

etween markets of which are not
competitive.
a
service
provider Universal
Service
and
aObligation Fund (USOF)
group ofexclusively for meeting the
consum
Universal
Service
ers
Obligation was established
in
April,
2002.
The
4
h
ear andUniversal Service Levy is
dispose presently 5 per cent of the
Adjusted Gross Revenue
of
appeal (AGR) of all telecom
against service providers except
any
the pure value added
directionservice
providers
like
,
Internet, Voice Mail, E-Mail
decision
service
providers
etc.
or order
Indian
Telegraph
Act
has
of TRAI
been amended in
Tariffs forOctober2006 to provide

telecomm support for all telegraph
unication services including mobile
and broadband to bridge
services the digital divide.
have
evolved
With the introduction of the
from
a
Unified Access Licensing
regime
Regime, operators can
where
offer
telecom
access
tariffs
services
to
consumers
in a
were
technology
neutral
determin
ed
bymanner, subject to fulfilling
conditions.
Telecom certain
Regulator Introduction of this regime
has also broken the
y
Authority legal/regulatory impasse
of Indiabetween the cellular and
to
abasic service providers.
regime Issuance of Intra-Circle
where
Merger and Acquisition.
tariffs areGuidelines
provide
largely investors an opportunity to
under
take stakes in existing
forbearan telecom operations.
ce. TRAI
intervene
2.Government
s
byInitiatives
:
The
regulatin Government has taken the
g
thefollowing main initiatives
tariffs forfor the growth of the
Telecom Sector;
MIB,
Economics
Department of
Page
Commerce,
|9
Delhi School of

2011
regime was implemented

with effect from 1st May
A
ll
5
Guidelines
for
telecom Unified Access Service
services License
regime
were
have
issued in November 2003,
been
27 licenses out of 31 Basic
opened Service Licenses were
up
forconverted
to
Unified
Access Service Licenses
free
competit
ion for6
In
April
2004,
unprece license fee for Unified
dented Access Service Providers
growth (UAS) was reduced by 2
per cent
2
2
17
7
License fee for
(Informati infrastructure
Provider-II
on
reduced from 15 per cent
Technolo to 6 per cent of the
gy
Adjusted Gross Revenue
Agreeme and spectrum charges
nt) ITA-Ibetween 2 to 4 per cent in
items areJune 2004
at
zero
Customs
8
Entry fee for NLD
Duty.
Specified licenses was reduced to
capital `2.5 Crore from `100
goods
Crore. Entry fee for ILD
and
allreduced to `2.5 Crore from
inputs
`25 Crore
required
to
Lease line charges
manufact 9
ure ITA-I,have been reduced to
items aremake
the
bandwidth
at
zeroavailable at competitive
Customs prices to facilitate growth
Duty
in IT enabled services
A 10
One India plan i.e.
vailabilit single tariff of `1/-per
y of lowminute to anywhere in
cost
mobile India was introduced from
handset 1st March 2006 by the
Public
Sector
s
Undertakings. This tariff
4
T was emulated by most of
the
private
service
he
providers
also.
This
internatio
nal Longscheme has led to death of
Distance distance
in
Services telecommunication and is
(ILDS)
opened going to be instrumental in
promoting
National
with
Integration
further.
effect
from April
2002.
11
The
robust
Calling
telecom
network
has
also
Party
facilitated
the
expansion
of
Pays
BPO
industry
that
is
(CPP)
having 500,000 employees
now and13
The Governments
adding policy is neutral on use of
400
technology by telecom
employee service providers subject
s per day. to availability of scarce
resources
such
as
12
A spectrum etc.
nnual
Licence Fees 6-10
license 14
per
cent
of Adjusted
fee
for
Gross Revenue (AGR)
National
Long
3. Foreign Direct
Distance Investment Policy:
(NLD),
Internatio Foreign Direct Investment
nal Long(FDI) was permitted in the
Distance telecom sector beginning
with
the
telecom
(ILD),
Infrastruc manufacturing segment in
1991
when
India
ture
embarked on economic
Providerliberalisation.
II, VSAT
commerci
FDI
is
defined
as
al
and
investment made by nonInternet
residents in the equity
Service
capital of a company. For
Provider
the telecom sector, FDI
(ISP) with
includes investment made
internet
by Non-Resident Indians
telephony
(NRIs),
Overseas
(restricte
Corporate Bodies (OCBs),
d)
foreign entities, Foreign
licenses
Institutional
Investors
was
(FIIs),
American
reduced
Depository
Receipts
to 6 per
(ADRs)/Global Depository
cent
of
Receipts (GDRs) etc.
Adjusted
Gross
Present FDI Policy for the
Revenue Telecom sector:
(AGR)
with effort In Basic, Cellular Mobile,
from JanNational Long Distance,
International Long
2006.
Distance, Value
Delhi School of
Economics
MIB,
Page
Department of
| 10
Commerce,

2011
Foreign
Direct
Investment up to 74 per
Added cent permitted, subject to
and
security
Services licensing
requirements
for
the
and
following:
Global
Mobile 1Internet
Service
Personal (with gateways)
Communi
cations 2Infrastructure
by
Providers (Category II)
Satellite,
FDI
is3Radio
Paging
limited to Service
49
per
FDI up to 100 per cent
cent
(under permitted in respect to the
automatic following telecom services:
route)
ISPs not providing
subject to1gateways
(Both
for
grant of
satellite and submarine
licence
cables)
from the
Departm 2Infrastructure
ent
of Providers providing dark
Telecom fibre (IP Category I)
municatio
ns
and3Electronic Mail
adherenc
e by the4Voice Mail
companie
s
(whoThe above is subject to the
following conditions:
are
investing
FDI up to 100 per
and the1cent
is
allowed subject to
companie
the
condition
that such
s
in
companies
would
divest 26
which
per
cent
of
their
equity in
investme
favour
of
Indian
public
nt
is
within
5
years,
if
these
being
companies
are
listed
in
made) to
other
parts
of
the
world.
the
licence
2The
above
condition
services would be subject
s
for
to licensing and security
foreign
requirements, wherever
equity
required.
cap and
lock-in 3Proposals for FDI
period for beyond 49 per cent shall
be considered by Foreign
transfer
and
addition Investment Promotion
of equityBoard (FIPB) on a case-tocase basis.
and other
license
1
In
the
provision
manufacturing sector 100
s.
per cent FDI is permitted
under license from Department of

Telecommunications
the
automat
ic route. 1
Foreign
direct
investment up to 74 per
I cent permitted, subject to
n Basic,licensing
and
security
Cellular requirements
for
the
Mobile,
Internet
Service
(with
paging
gateways), Infrastructure
and
(category-II),
Value Providers
and
Radio
Paging
Service
Added
service,
and
2
FDI up to 100 per
Global cent permitted in respect
Mobile of
Personal 1ISPs not providing

Communi gateways
(both
for
cations
satellite and submarine
by
cables),
Satellite,
FDI is
2Infrastructure
permitted
Providers
providing dark
up to 49
fibre
(IP
Category
I);
per cent
(under
Electronic
Mail;
automatic 3and
route)
subject to
grant of 4Voice Mail
MIB,
Economics
Department of
Page
Commerce,
| 11
Delhi School of

2011
service company is treated

as part of domestic equity
1
F and is not set of against
DI up tothe foreign equity cap.
49
per
Manufacturing
cent
is2
100 per cent FDI is
also
under
permitted permitted
automatic
route.
in
an
investme
FDI is subject to the
nt
following conditions:
company,
set up for
FDI up to 100 per
making 1
cent
is
allowed subject to
investme
the conditions that such
nt in the
companies would divest 26
telecom
per cent of their equity in
companie
favour of Indian public in 5
s
years, if these companies
licensed
are listed in other parts of
to
the world.
operate
telecom
2
The
above
services. services would be subject
Investme to licensing and security
nt
by requirements, Wherever
these
required.
investme
nt
3
Proposals for FDI
companie beyond 49 per cent shall
s in a be considered by FIPB
telecom on case to case basis.
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 12

2011
P
R
O
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OBILE
PHONE
S
Different Tiers
of Mobile
Phone
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.
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e
a
l
u
e
r
o
l
o
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r
e
d
3. High-cost
Mobile:
Price range: Less than
`2,500 to `4,000
Key features include:

extendible memory,
digital
camera,GPRS,MP3
player
4. Smart Phones
Handse gy development.
t:
Greater The India mobile
than
handsets market has
`4,000
got even more crowded
and fragmented in the
Key
features lower- and mid-market
include segments with the entry
:QWER of new players offering
TY
innovative models at
keypad/ attractive price points to
touch
screen, lure buyers. There is
huge demand for
dual
feature-rich, low-cost
SIM,
Wi-Fi,
handsets. Of the total
and 3G handset sales, the
majority of sales fall in
the price band of below
$75. That is where the
Sw
majority of the volume is
itch
and that is where you
ing
will see the majority of
pro
pe
the Indian and Chinese
nsit
manufacturers playing.
y
Going forward, the
fro
market is going to grow
m
at a rate of 15-20%
low
er
year-on-year. Low-cost
lev
devices will grab 60% of
el
the market over the next
se
three to four years.
gm
People are looking for
ent
to
devices with greater
the
value. That value could
mi
be in terms of features
d
like QWERTY keypad or
tier
touch screen etc. One
se
gm
can get a handset for
ent
Rs.2,000-3,000 with
is
features like good
ex
memory, touch screen,
pe
QWERTY, camera, dualcte
d
SIM, longer battery life
to
etc. The majority of
inc
Indian manufacturers
rea
are in the low-price
se
band and that is why
wit
h
market is looking quite
the
competitive. However, if
inc
they move up the price
rea
band, then they will face
se
competition from global
of
inc
players. When the low
om
end segment customers
e
go for repeat purchases,
lev
they go for low cost
el
mobile phones with
an
d
extra features. In fact,
tec
many of them are ready
hn
to pay higher prices for
olo
these
new
featur
es and
vendor
s are
taking
advant
age of
the
psych
e of
the
custo
mers
by
adding
these
featur
es.
Majo
r
Han
dset
Mak
er
Com
pani
es in
India
Blackberry
HTC
Sony Ericsson
Samsung
MIB,
Sony Ericsson
Motorola
Nokia
LG
Department of
Commerce,
Delhi School of
Economics
Page
| 13
Karbo
Lava
Micro
Spice

2011
gap
Finnish There are 300 Million
handset Fewer Female than Male
Subscribers who have
maker
Nokia ismobile phone coverage
losing itsbut dont have a handset in
market the world which amounts
a
US$13
Billion
share into
Opportunity
as
well
as
India.
social
welfare.
Cost
and
Nokia
currently perception that it isnt
has
anecessary to own a mobile
market phone and fear of being
to
master
the
share ofable
36.3% attechnology are the biggest
the endbarriers to connecting
of Junemore women in developing
countries. By using mobile
2010
from 54%phones women can unlock
at
theeconomic
opportunities,
end
ofsave time and money,
June
increase
return
on
2009.Sec investment and maximize
ond
household resources.
biggest
player
Case Study:
happens Mera Mobile,
to
be
Samsung Mera Saathi
In November 2010, a
and
MicroMax village in Uttar Pradesh
has
banned unmarried women
surprising from using mobile phones.
ly
Here, and elsewhere in
become this region, mobile phones
the
3rdare seen as unwelcome
largest tools that enable women to
player
step beyond the confines
recently of traditional roles and
according social mores. This explains
to marketthe concept of behavioral
share.
economics.
Herein
thesocial, cognitive and
Tappi emotional factors helps in
ng a understanding the reason
the
globa for
economicdecision(to
buy
l
oppor or not to buy a mobile) of
individuals(women).Mobile
tunit penetration among women
y and in
many
developing
bridgi markets is consistently
low, with just 28% of Indian
ng
women in possession of a
the
mobile phone.
mobil
e
In an effort to bridge the
gend mobile gender gap in
India, Uninor joined forces
er
with thePradesh and Bihar. The

GSM
campaign is an awareness
Associati initiative (for changing the
ons
perception and behavior)
mWomen that highlights the benefits
advocacy from
mobile
phones,
campaign including
income
.
generation opportunities,
Together stronger familial and social
they
ties, and new information
launched on health, education and
Mera government schemes, as
Mobile, well as personal safety
MeraSaat and entertainment.
hi,
which
Benefits
means
1. SMS blasts among
My
Uninor users in
Mobile,
Uttar
Pradesh
My
(UP)
Compani
2. Outbound dialing:
on. This
A voice message
campaign
in
the
local
aims to
language will be
bring the
delivered to rural
customers
lifetransform
3. Leaflets, raising
ing
awareness about
benefits
the advantages of
mobile technology,
of mobile
distributed at:
phones
to more
4. Uninor
retail
outlets
women
across all
5. AditiUrjaVikas
of India.
solar
charging
stations in UP
Sprea
ding
the
messa
ge
Distribution
of
20,000
calendars in rural UP and
Bihar
Gram
PraudyogikVikasSansthan
(GPVS), NGO partner,
Mera
pictorially depicting the
Mobile,
benefits of mobile phones
MeraSaat
to reinforce the message
hi
was
to the target audience
officially
throughout the year.
launched
in
Conducting quick quizzes
January among the village women.
2011, in(The one who can list five
the statesbenefits of mobile use will
of Uttarget a mobile handset and
a Uninor connection free.)
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 14

2011
from the perceived link

between mobile usage and
elopements, the following
theme is highlighted in the
campaign:
1. Income generation
2. Strengthening of
familial and social

ties
Safety
3.
4. Access
to new
information
on
health, education,
government
schemes
Building a more
sustainable future
By introducing rural Indian
women
to
telecommunications
and
its enabling effects, Uninor
aims to build a sustainable
future for the community.
Uninor employees also
share their time and
expertise in generating
awareness in the markets
where it does business,
strengthening
its
reputation as a responsible
corporate citizen and in the
process creating business
opportunities for it by
changing the behavior in
To shift these areas towards usage
the focus of mobile phones.
away
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 15
Survey results:
Till the age of 40 we discard phones just within 1-2 years
Figure 4: Discarding the Phone
The growth in the Indian mobile handset market is also likely to be driven by the replacement handset
market rather than new user additions. There is a huge replacement market in India and above all, the
consumers are now very receptive towards newer brands. The replacement market is expected to
grow from 118 mn handsets for the 12-month period ended December 31, 2010, constituting 62.77%
of overall Indian mobile handset market, to 359 mn handsets for the 12-month period ended
December 31, 2014 constituting 89.30% of the overall Indian mobile handset market.
More Findings of the survey:
For the basic user durability, battery life, warranty and user friendliness sound quality
was very important and other high end technologies didnt mattered.
Most of these persons were either daily wage earners or the people above 60. An
interesting thing to note was that 3 out of 6 persons gave importance to camera as well.
3
Mobile with a camera is on the way to become a basic feature.

Economics
P a g e | 16

2011
to most operators in other

countries.
SPEC
TRU Spectrum is a fundamental
driver of cost in mobile
M
networks the fewer
POLI spectrums, the more sites
CY
are needed, and the cost
of
deployment
rises
accordingly. This scarcity
Spectrum situation in 2G (GSM) is
policy islikely to be replicated in
the most3G. It causes Indian
obvious. operators to have to invest
capital
building
India ismore
burdened capacity in urban areas in
order
to
overcome
with
severe spectrum constraints and
spectrum preserve service quality,
constraint but thereby limiting capital
s.
available for the expansion
Minutes of coverage into rural
per
areas or to lower income
subscribe urban agglomerations. The
r
arecivilian spectrum shortage
higher inis created by two factors:
India
the occupation of critical
than
infrequencies by the military
almost and other government
any otherdepartments; and a policy
country bias towards a large
and citiesnumber of operators. Many
in Indiacommentators argue that
have
fewer operators would
some ofachieve greater economies
the mostof
scale,
while
still
densely preserving the benefits of
populate
vigorous competition. All
d areas.
over the world and across
Both
industries, it is amply
these
demonstrated
that
a
factors
market
structure
with
increase
relatively few players but
the need
robust regulatory oversight
for
can be more competitive
spectrum
than one populated by a
,
yet
large number of small
Indian
operators players. In fact market
fragmentation has the
is
struggling disadvantage of none of
the players having enough
with
average capacity and resources for
spectrum innovation and delivering
allocation greater value to the
s only acustomer. There is also the
third
ofdanger of a single large
firm emerging as a virtual
those
available monopoly in such markets,
and
ntly being denied access
drawing to
telecommunications
monopoly services. They are losing
rents.
out because licensees are
The
diverting investments to
governm maintain quality of service
ent wouldin
urban
areas.
A
have tocomprehensive review of
weigh
the overall national benefit
these
of current policy on
factors spectrum allocation is
against urgently
required. Are
its
there
more
efficient
apparent alternatives for the military
objective and public sector which
s
ofwould free spectrum for
maximisi private use while not
ng
adversely affecting the
resource militarys ability to protect
s.
AIndias national interests?
governm This should include an
ent
estimate of the cost to the
initiative nation of the spectrum that
whereby is currently being used by
additional the
military.
Greater
spectrum transparency in this regard
is madewould be most desirable.
available The most serious problem
to
thefacing India surrounds
industry data
services.
Indias
has yet tocurrent
position,
by
deliver international standards, is
results. lagging, and we cannot
afford any complacency.
As
aThe rest of the world is
conseque increasingly
concerned
nce, theabout increasing access to
Indian
high speed data rather
telecomm than voice connectivity.
unication High-speed data services
s industryand the internet are seen
is beingas a critical capability that
starved will drive future global
of
competitiveness
in
spectrum technology and services.
and theFor India, and the rest of
private the developing world, data
sector isservices will be delivered
being
by wireless broadband
drained access rather than fixed
of capital.line
copper
or
fibre
The
networks. But the vision in
losers
India is likely to be limited
from thisby the reality of insufficient
spectrum spectrum availability. The
constraint first 3G spectrum auction
are
thescheduled for January
people 2009 is to be welcomed
who arebut
the
incremental
conseque capacity for each operator
is mostdeficiencies
of
2G
likely tospectrum allocations. The
be
delivery of world-class
consume data services requires very
d
bylarge blocks of spectrum.
voice
capacity A major strategic plan for
as
adata services is urgently
result ofrequired to plan the
availability of sufficient
the
spectrum.
Commerce,
Delhi School of
Economics
MIB,
Page
Department of | 17

2011
model
will
eventually
deliver universal access to
OVER telecommunications and
ALL most importantly access to
INVE high-quality data services.
India needs to set out a
STIN stable policy framework to
G
attract
long-term
in
ENVI investment
telecommunications.
That
RON
requires a stable licensing
MEN structure, consistent policy
T
decisions
and
a
predictable framework for
regulatory
intervention.
India hasThe history of Indian
has
chosen atelecommunications
been
one
of
frequent
shifts
policy of
creating in policies, regulations and
that
create
a highlytaxation
competiti uncertainty for investors. A
stable and attractive policy
ve,
fragment approach is especially
important in the context of
ed
industry, the current global credit
crunch and with capital so
which
scarce.
Policies
are
has
delivered needed which will attract
extraordi long-term investors who
narily lowwill make the commitments
and investments required
prices
create
world-class
and highto
minutes telecommunications
of
usenetworks and services that
will
deliver
global
per
competitiveness
for
all
the
subscribe
citizens of India. Therefore
r.
However, this is the time for the
to
be
these lowgovernment
assessing
fundamental
prices
are onlypolicy issues that impact
currently sector investment, such as
enjoyed foreign direct investment
by aboutcaps, licence extension
spectrum
2530% terms,
of
theavailability and allocations,
and criteria for mergers
Indian
populatio and acquisitions. All these
affect
the
n theissues
rest
doeconomics of additional
not havecapital investment. There
a mobileis a need to determine
phone. what sort of industry India
The realneeds and set the policy
question framework accordingly.
is
to
whether The physical infrastructure
the same(or lack thereof) is widely
acknowle urban areas in search of

dged tojobs is straining urban
be one ofinfrastructure
and
the
increasing the population
crucial living in city slums. Indias
impedime urban
population
is
nts
toexpected to double over
achieving the next two decades, to
higher
575 million. Any strategy
and morethat seeks to address the
inclusive problem
of
inclusive
economic growth will therefore have
growth into contend with these
India.
harsh realities of low
The lackproductivity
in
the
of
countryside, a massive
adequate movement of people to the
infrastruc cities,
and
extensive
ture
ispoverty in both rural and
particularl urban areas. Past policies
y acute inhave not had much
rural
success,
often
being
areas,
defeated by the magnitude
home toof the problem as well as
70%
ofweaknesses
in
Indias implementation. But the
populatio message is clear. Rural
n and theproductivity
needs
to
52%
ofincrease both as part of
the workthe development process
force thatand to raise incomes for
is
millions of Indians who live
primarily below the poverty line, in
engaged the countryside and the
in
cities. A sustainably faster
agricultur rate of growth can only be
e
andachieved by improving
related productivity,
but
activities. underinvestment
in
4
infrastructure
is
an
Agricultur important barrier. India
e in Indiaplans roughly to double
accounts investment
in
for 18%infrastructure, to $500
of
billion over the next five
national years, or about 8% of GDP
income, each year. The Planning
implying Commission maintains that
extremely the growth target of the
low
Eleventh Plan (200712) is
agricultur achievable only if the
al
infrastructure deficit can
productivi be
overcome
and
ty.
Theadequate investment takes
resulting place to support higher
migration growth.5 The government
of excessexpects private investors
farm
to contribute two-fifths of
labour tothe total investment in
infrastruc repeating. First, Indias

ture, notteledensity has shown
only
toextraordinary growth since
expand private participation in the
capacity sector was introduced,
but alsorising from less than 1% in
to
1998 to over 30% today.
improve Secondly, several research
the
studies have found that the
quality oftelecommunications
service. infrastructure is one of the
The
significant
factors
in
telecomm economic
growth,
unication alongside others such as
s sectoroverall
investment,
has hadeducation, energy and
the mosttransportation networks.7
success The change in Indias
in
telecoms landscape has
attracting been dramatic.
private In 1994, the year the
investme National Telecom Policy
nt and iswas drafted; fewer than 1
often
in 100 Indians owned a
Public
sector
held upphone.
as
anExecutives working for the
example incumbent monopoly were
for otherhighly popular, given their
infrastruc ability to short circuit the
endless waiting time for
ture
sectors.6 the privilege of owning a
telephone. Less than 15
Two
years on, teledensity has
familiar
increased to more than
reasons
32%
and
subscriber
for
this
numbers are growing at a
status
rate
are worth
MIB,
Economics
Department of
Page
Commerce,
| 18
Delhi School of

2011
2007 was reached, quite

unexpectedly. While the
of abouttelecoms-growth link has
10 millionbeen
explored
across
per
different countries and
month. within a particular country
Ownershi over time, few studies
p of ahave
assessed
the
phone isrelationship
at
the
no longersub-national level. Indias
a functionFederal structure, with
of
whosome states such as Uttar
you
Pradesh,
Maharashtra,
know, butand
Madhya
Pradesh
rather
larger in geographical area
conforms and population than most
to
theEuropean
countries.
conventio Moreover,
balanced
nal forcesregional development has
of
always been an objective
demand in
and
Indias plans and therefore
supply. studying the impact of
Waiting telecoms
liberalisation
lists areacross states will provide
down andvaluable insights for this
voice
policy aim. The rapid
calls
inspread of mobile telephony
India arein India is the most
amongst obvious manifestation of
the
the benefits of telecom
cheapest sector liberalisation. Fixed
in
theline penetration is in fact
world.
showing signs of decline,
The
and future growth will
Governm come from mobile. Given
ents
that about 10 million
target ofwireless subscribers are
being added every month,
250
the impact of telecoms on
million
phones state-level growth rates
by
thecan be explored through
end
ofthe impact of mobile
telephony.
MIB,
Department of
Commerce,
Delhi ol of
Scho Economics
Page
| 19

2011
second, rather than a perminute, basis. That will be

for subscribers, but
RELI great
will put further pressure on
GION operators, many of which
also having to fork out
AND are
large
sums
for
3G
MOBI licences.
LE
wonder, then, that
PHO Little
operators are shifting their
NE
strategies.
Having
focused on
(HO previously
trying to attract as many
W
customers and sell as
SIM cards as
THEY many
possible, they are now
MAK looking for ways to get
each customer to spend
E
more, by promoting new
MON value added services.
in the rich
EY ?) (Operators
world have been struggling
with this transition for

INDIAS years, as they have tried to
mobile- plug the gap left by
declining voice revenues
phone
industry and slowing subscriber
is addinggrowth by promoting data
services of various kinds.)
more
than 15m
new
In India, the operators
connectio have roughly segmented
ns eachthe market using the
month, itsacronym ABCD, which
growth stands
for
astrology,
sustained Bollywood, cricket and
by
devotion. The idea is that
ferocious all Indians are fascinated
competiti by at least one of these
on
andthings. Not everyone is
astonishi interested in astrology,
ngly lowthough, and Bollywood
prices (asand cricket have seasonal
Devotion,
by
little
asappeal.
$0.01 acontrast, has a perennial
minute inaudience.
some
cases).
The manner in which a
The
devout
Indian
industrys communicates with his
regulator, God has changed over the
the
years. At my workplace, I
Telecom often find a couple of my
Regulator formally
dressed
y
colleagues who are in their
Authority mid-40s muttering prayers
of Indiato the wallpaper images on
(TRAI), their computers, which
has
consist of pictures of their
recently favourite deity. While they
hinted
may still continue to carry
that
a picture of their deity in
operators their wallets, this new
may soonoption fascinates them
have toeven more.
charge
customer
s on aThe telecoms operators
have found different ways
perto be part of a typical
consume screensaver.
To
rs dailyaccommodate variations in
routine. the popularity of local
Instead deities, the operators have
of wakingcustomised their services
up in thefor different regions. There
morning are more Krishna followers
to
ain Gujarat (West India),
jarring
whereas Kolkata (East
beep
India)
is
known
for
from hisworshipping Durga.
alarm
clock, his
Other devotional services
cell
can help with decisionphone
Instead
of
can singmaking.
referring
to
a
physical
a
melodiou calendar, subscribers can
s
aartireceive automatic alerts to
(prayer) tell them which dates or
times
of
day
are
that
inauspicious
for
starting
a
stimulate
new
job
or
shopping
for
a
s
his
senses atcar. And the caller tune,
is
played
to
dawn. Towhich
incoming
callers
as
they
experienc
e
thiswait for the person they
are calling to answer, has
divine
start
tograduated from being a
his day,bland beeping noise to a
he paysbhajan (devotional song).
Bharti Airtel, one of Indias
30
rupees leading operators, has
($0.63) aintroduced a service which
month. streams live audio aartis
Dependin recited by bhatjis (priests)
g
uponto mobile phones from the
most important shrines.
his
religion, While the bhatji is intoning
he
canthose prayers, he is also
subscribe talking into a microphone
to dailyplaced near the idol. With
quotes the introduction of 3G
from hisspectrum, the possibility of
video streaming is not far
God
which areoff. Given the devotion of
fed
toIndian consumers to their
him, likemobile phones, all this
medicine, gives the notion of an
omnipresent God a whole
three
times anew meaning.
day
at
regular
intervals. MOBILE
For this
service PHONES AND
he
canECONOMICS
either
GROWTH
pay
seven
rupees Case 1: Catch
for
a
weekly the FISH
pack, or
28
rupees You are a fisherman off the
coast of northern Kerala.
for
a
Visiting your usual fishing
monthl ground, you bring in an
y pack,unusually good catch of
which
sardines.
That
means
includes other fishermen in the area
a
freewill probably have done
well too,be low, and you may not

so thereeven be able to sell your
will
becatch. Should you head for
plenty ofthe usual market anyway,
supply ator should you go down the
the localcoast in the hope that
beach
fishermen in that area will
market: not have done so well and
prices willyour fish will
MIB,
Department of Economics
Commerce,
Page
Delhi School of | 20

2011
home markets all the time.

This was wasteful because
fetch
awhen a particular market is
oversupplied,
fish
are
better
price? Ifthrown away, even though
you makethere may be buyers for
them a little farther along
the
the coast. On average, 5wrong
choice 8% of the total catch was
you
wasted,
says
Robert
cannot Jensen, a development
visit
economist
at
Harvard
another University
who
has
market surveyed the price of
because sardines at 15 beach
fuel
ismarkets along Kerala's
costly
coast. On January 14th
and each1997, for example, 11
market isfishermen at Badagara
open for
beach ended up throwing
only
a
couple ofaway their catches, yet on
that day there were 27
hours
buyers at markets within
before
dawn 15km (about nine miles)
and
itwho would have bought
takes thattheir fish. There were also
long forwide variations in the price
your boatof sardines along the
to puttercoast.
from one
to
the
But starting in 1997 mobile
next.
Since fishphones were introduced in
Kerala. Since coverage
are
gradually,
this
perishabl spread
e,
anyprovided an ideal way to
gauge the effect of mobile
that
cannot phones on the fishermen's
be soldbehaviour, the price of fish,
will haveand the amount of waste.
many
years,
to
beFor
dumped anecdotes have abounded
into theabout the ways in which
sea.
mobile phones promote
more efficient markets and
economic
This, in aencourage
activity.
One
particularly
nutshell,
was thepopular tale is that of the
situation fisherman who is able to
call
several
nearby
facing
markets
from
his
boat
to
Kerala's
establish
where
his
catch
fisherme
n
untilwill fetch the highest price.
Mr Jensen's paper adds
1997.
some numbers to the
The
familiar stories and shows
result
how
mobile
was farprecisely
phones
support
economic
from
ideal forgrowth.
both
fisherme As phone coverage spread
n
andbetween 1997 and 2000,
their
fishermen started to buy
customer phones and use them to
s.
Incall coastal markets while
practice, still at sea. (The area of
fisherme coverage reaches 20n chose25km off the coast.)
to
stickInstead of selling their fish
with theirat beach auctions, the
fisherme had come into effect, in the

n wouldform of a single rate for
call
sardines along the coast.
around to
find the
This more efficient market
best
benefited
everyone.
price.
Fishermen's profits rose by
Dividing 8% on average and
the coastconsumer prices fell by 4%
into threeon average. Higher profits
regions, meant the phones typically
Mr
paid for themselves within
Jensen two months. And the
found
benefits are enduring,
that therather than one-off. All of
proportio this, says Mr Jensen,
n
ofshows the importance of
fisherme the free flow of information
n
whoto ensure that markets
ventured work efficiently.
beyond Information makes
markets work, and markets
their
home
improve welfare, he
markets concludes.
to
sell
their
catches Mr Jensen's work is
jumped valuable because studies
of the economic effect of
from zeromobile phones tend to be
to aroundmacroeconomic. A well
35% asknown example is the
soon asfinding in 2005 by Leonard
coverage Waverman, of the London
became Business School, that an
available extra 10 mobile phones
in eachper 100 people in a typical
region. Atdeveloping country leads
that
to an additional 0.59
point, nopercentage
points
of
fish weregrowth in GDP per person.
wasted
and theCalls and effect
variation
in prices
fell
One criticism levelled at
dramatic such studies, says Mr
ally. ByWaverman, is that it is
the enddifficult to tell if mobile
of
thephones are promoting
study
growth, or growth is
coverage promoting the adoption of
was
mobile phones, as people
available become able to afford
in
allthem. It is easy to imagine
three
ways in which mobile
regions. phones could stimulate
Waste
economic activity they
had beenmake
up
for
poor
eliminate infrastructure
by
d and thesubstituting
for
travel,
law ofallow price data to be
one
distributed and enable
price traders to engage with
the ideawider markets, and so on.
that in anMr Waverman uses a
efficient variety of statistical tests to
market try to tease apart cause
identical and effect. But detailed
goods
analyses of micro-market
should data like Mr Jensen's, he
cost thesays, show how phones
same really do make people
better off. ent intervention. Mobilephone networks are built

by private companies, not
Furtherm governments or charities,
ore, saysand are economically selfMr
sustaining.
Mobile
Jensen, operators build and run
phones them because they make a
do
thisprofit doing so, and
without fishermen, carpenters and
the needporters are willing to pay
for
for the service because it
governm increases their profits.
MIB,
Economics
Department of
Page
Commerce,
| 21
Delhi School of

2011
the way many small

businesses operate. Now,
more firms are turning to
The
resulting these apps to enhance the
welfare way customers interact
gains arewith their products and
indicated services and even
by
theboost their bottom lines.
profitabilit
y of both
"People nowadays want
the
operators everything to be at their
and
if
and theirfingertips,
customer companies are not finding
s,
heways to provide these
suggests. tools they will soon see
drop-off
from
their
All
governm customers. Providing an
also
offers
a
ents haveapp
to do istremendous
marketing
issue
opportunity. Securing a
licences placeholder in customers'
to
smartphones can help
operators keep a company on the
,
brain, which is especially
establish important in this rocky
a
cleareconomy.
and
transpare
nt
regulator
y
framewor
k
and
then wait
for
the
phones
to work
their
economic
magic.
Case
2:
Building a simple app can
Smar be affordable for most
tphon companies. Although a
developer might charge
e
$6,000 to $8,000 to create
Apps a typical app, a modest
with fewer features
Fuel app
could cost a company less
Busin than $2,000, a developer
San Diego. The web site
ess in
iPhoneAppQuotes.com
allows users to compare
Between lowest rate quotes from
documen developers.
ting
expenses Here are three ways an
and
app can improve your
processin business:
g credit
cards
from justAttract new
customers
about
anywhere
,
companies
are
smartpho Some
using smartphone apps to
ne
applicatio advertise or expose their
ns haveservice to a new and
changed growing audience. David
Wolff, co-now awaiting approval

founder from Apple. For those who
of Breakwant to keep learning, a
Down
subscription for $29.99 a
Way,
amonth gives users access
Pomeroy, to the company's full
Ohiocatalogue
of
lessons
based
taught by artists including
online
Jorma Kaukonen from
service Jefferson Airplane and
that
Michael Falzarano from
provides Hot Tuna.
guitar
and bass
lessons,
says he
hopes his."Existing members will
soon-to- jump on this, and we'll
attract people searching
bereleased [Apple's App Store] for
app willguitar lessons," Wolff says.
help reelThat group of people is
in
newgrowing. Apple sold 1.5
customer billion apps during the App
s. WolffStore's first year and 5.2
plans tomillion iPhones during the
company's
fiscal
third
offer
quarter.Wolff is hoping the
about fivepopularity of the device will
to 10 freehelp him double his
lessons company's subscribership.
on
the"I'm hoping we can really
app,
gain
exposure
for
which isourselves," he says.
Commerce,
Delhi School of
Economics
Page
MIB,
|
22
Department of

2011
receive updates from the

school
more
easily.
Impro "Everyone who had an
iPhone was excited about
ve
this," he says.
custo
mer
servic Even if another firm profits
from
offering
your
e
company's app, users still
benefit from being able to
access your company's
Many
apps doservice with greater ease.
Just ask Tobi Lutke, the
more
CEO of Ottawa-based web
than
site host Shopify. When an
draw
developer
attention independent
to
yourcreated Shopkeeper, an
product; app that allows any of
Shopify's 5,000 customers
they
manage
their
improve to
the
inventories, more than 100
customer' users downloaded the
s
$4.99 app. Lutke says
experienc Shopkeeper and apps like
e. Jasonit are good for his
Gossard, customers
and
his
the leadbusiness. "The app allows
administr small
companies
to
ator foroperate more like larger ethe Circlecommerce shops, which
School, ahave dedicated staff to
parent- improve their workflow,"
owned Lutke says. "With this
and
technology, you can be
operated very small and have the
school insame technology as a big
San
corporation."
Antonio,
praises
the utilityCreate a revenue
of
theopportunity
school's
new free
Some
apps
present
app,
which iscompanies with new ways
schedule to lift profits, and others
d
toare revenue generators
launch inthemselves. Blakely Long,
a couplethe CEO of BetterQOL, a
weeks. pain-management service
Administr in Bellaire, Texas, and her
ators willpartner Brian Loftus, a
be ableneurologist, are banking
to
usethat some of the estimated
their
33
million
migraine
smartpho sufferers will purchase
nes
totheir new app, iHeadache.
highlight The app, which costs
upcoming $9.99
to
download,
school identifies the type of
events headache a user has,
and
based on their symptoms,
make
the duration of their
speedy headache
and
the
updates, medication they may be
he says.taking. The app also
And
generates reports which
parents can
be shared
with
will
be
physicians.
"We
are
able
to
targeting neurologists and
headach businessmen on the go but

e
also for rural communities
specialist in the developing world
s, as theythat are often situated
benefit many miles away from
from
banks. While it may not
having address scarcity of capital,
better
which is the main issue of
reports," the poor, it does address
Loftus
the issue of access, and,
says.
in the case of AppLab
(Application Laboratory),
an initiative of Google and
Grameen Foundation, of
information.
Case
3:
In India, the government is
up
elaborate
Mobil setting
technology and regulatory
es for architecture to deliver
fighti basic banking services
through
mobile-linked
ng
accounts in rural areas.
pover Around 73,200 villages
with a population of over
ty
2,000 people have been
identified
to
receive
Given themobile-linked basic bank
high
services by March 2012.
penetrati
on
of
mobile The idea is to marry the
telephony countrys 500-million-plus
mobile phone network and
in
developin basic financial services
which are often not
g
available in rural areas that
countries
have no bank branches.
like India,
The National Payment
using it toCorporation of India, a notdeliver for-profit company that
scarce provides
low-cost
banking infrastructure for providing
services payment services among
in
ruralbanks, is helping formulate
areas isback-end
technology
one waysolutions. These will link
of
the
persons
mobile
fulfilling number to his no-frills bank
the
account. Eventually, it will
governm be integrated with the
ents
unique identity number,
financial once
it
gets
inclusion operationalised.
program
me Doing
banking How will this work? One
work viamodel, successfully tried
out in some developing
the
countries, like Kenya, is
mobile isthe banking correspondent
convenie (BC) network. The bank
nt not justappoints a BC in a village,
for hot-say the kirana shop-owner,
and villagers give her their
shot
deposits.
MIB,
Economics
Department of
Page
Commerce,
| 23
Delhi School of

2011
The BC
services
them in
one of
two
ways:
1
She
anks server -- if
the customer has
a mobile phone,
he gets an SMS
receipt; if not, the
BC prints out a
receipt (such a
printer-phone setup, which includes
a
scanner
for
fingerprints, costs
around `30,000).
h
a
s
2
The
BC
a
keeps
the
money,
p
and
the
bank
h
which
has
a
o
deposit from the
BC debits it from
n
that. When the
e
money
is
o
withdrawn,
n
another wireless
w
sync gets done,
another
h
SMS/receipt gets
ic
generated,
and
h
this time around
t
the BCs deposit
h
account with the
bank
gets
e
credited.
a
m
o There are some doubts as
u to whether, when the
n mechanics of this are
t worked out, this will be
is profitable for banks or the
e BC as the volume of
n money in the hands of
those it should most
t
benefit is small. One
e suggestion to increase
r volumes is to use the
e mobile telephony route for
d NREGS
payments.
a NREGS payments for
n 2010-11 are expected to
d be in the region of `60,000
is crore. The idea is that the
w unique ID each citizen will
ir get will be linked to the BC
e network. Not only will the
l government be able to
e ensure that the money
the
person
s goes to
concerned,
with
zero
sl
leakage -- a major concern
y
at present -- but it also
s means that the NREGS
e worker gets to know he
n has received his money
t without wasting the day or
t two it takes to visit the
o nearest bank branch to
t check
whether
the
h payment is in. The same
e holds for all other social
payments
the
b sector
governm which involves opening

ent
more accounts in rural
makes. branches. Bankers say
they tried to appoint
business correspondents
The
on a commission basis but
system received
a
lukewarm
sounds response. They have also
good, but opened accounts through
there are hand-held devices and
some
mobile phones but, in the
glitches. absence of power and
Last
connectivity,
the
year,
technology-driven solution
banks in has been a failure in rural
Madhya areas. Technology is the
Pradesh biggest issue, and the
were
state government must
pulled up understand that it is a
by
the tough task.
state
governm
ent
for While there are many
opportunities in mobile
not
progressi banking services, experts
ng
fast say some issues need to
enough be dealt with first, such as
in
its lack of lingual support,
providing
voice-based
financial support for people who are
inclusion not literate, weak network
program coverage in rural areas
me,
and different technologies
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 24

2011
ein (2003), its methods are

pretty much the same as
introduced by the
MOBI those
Game Theory revolution.
LE
At the core of most models
MAR in Behavioural Economics
there are still agents who
KET: maximize a preference
BEHA relation over some space
of consequences and the
VIOU solution in most cases still
standard
RAL involves
equilibrium
concepts.
ECONHowever, the behavioural
OMIC economists are not
committed to what is
S
usually referred to as
PERS rational motivations. An
fable (or a
PECT economic
model as we would call it)
IVE that has at its core
fairness, envy, presentbias and the like is by now
not only permitted but
What even preferred.
is the
now?
Perhaps,
Beha Why
economists have finally
viour realized that orthodox
economic models are too
al
unrealistic and dogmatic.
EconoAnd perhaps it is the result
mics of our constant search for
directions in research.
Rev new
One might also ask why
olutio other ideas (such as those
n? of bounded rationality) are
less welcome than those

Economi of Behavioural Economics.
cs is aThe models of Behavioural
collection Economics are not that
of ideasdifferent from those of
and
applied economics and
conventio thus are not perceived as
ns whicha threat. The field of
economis behavioural economics
ts acceptis devoted to studying how
and useconsumers actually make
to reasonchoices. It uses some of
with.
the
insights
from
Namely, itpsychology to develop
is
apredictions about choices
culture. people will make and
Behaviou many of these predictions
ral
are at odds with the
economic conventional
economic
s
model
of
"rational"
represent consumers.
s
a
transform
ation of
Behavioural
that
culture. Economics and
Nonethel Exploration
ess, as
pointed A paper in Behavioural
out
byEconomics typically begins
Camerer with a description of a real
life
phenomenon
that
and
Loewenst cannot easily be explained
by
thecompare too many products
standard and features leading to
rational confusion, random choice,
or even failure to make any
man
choice.
paradigm
.
ToHeuristics
consumers
often
take
short
support
the case,cuts (e.g., by following rules
reference of thumb such as what
s
areothers say/do) when the
brought decision environment is
from
complex relative to their
research mental and computational
in
apabilities.
psycholo
gy
andEndowment
sometime consumers value something

s
evenmore once they have owned
studies ofit than before they own it
animal and may be reluctant to give
behaviourup what they have. They
.
Inmay stay with the present
Rabins service provider e.g., the
because
of
discussio incumbent,
n all thatmisplaced loyalty and/or a
failure to acknowledge poor
is
choices in the past.
borrowed
Defaults a default
from
psycholo inertia may operate in favour
gy is theof an opt-in default since
idea thatmaking a decision to optout takes more effort than
some
people, into opt-in e.g. an opt-in
default would automatically
some
extend a mobile phone or
cases, broadband contract unless
have
the customer expressly
some
opts-out.
present- Hyperbolic
bias.
discounting
Each ofconsumers and service

us
canproviders may tend to be
think ofshort-sighted when making
situations decisions
overvaluing
in whichimmediate costs or benefits
against future costs or
we
exhibit benefits.
present- Framing biases
consumer
choice
is
bias.
influenced by the frame in
However, which
information
is
it is alsopresented; presentation of
easy tothe same information in a
frame, can lead to
think ofdifferent
a different decision.
situations
where weRisk/Loss aversion
the
preference
for
have
avoiding loss is widely
future- considered to be greater
bias.
than the preference for
Issues gain. Part of the reluctance
to switch from one supplier
the
perspecti to another may be due to
ve
ofthe fear that experience with
new supplier is unknown
behaviou a
and may be worse.
ral
economic
s explore,
include: Behavioural
economics and
Choice behavioural
overlo bias
ad
consumer Combining economics with

s have topsychology and
experim
ental
researc
h on
decision
-making
behaviour, behavioural
economists have sought to
better explain what
influences consumers in
their purchasing
MIB,
Economics
Department of
Page
Commerce,
| 25
Delhi School of

2011
deci
sion
s
and
how
this
beh
avio
ur
affe
cts
the
mar
ket
(Dell
a
Vign
a
200
9).
In
ess
enc
e,
beh
avio
ural
eco
nom
ics
use
s
evid
enc
e of
how
hum
ans
actu
ally
beh
ave
(Syl
van
200
9). It
argu
es
that
obs
erve
d
hum
an
deci
sion
mak
ing
diffe
rs
from
the
rati
onal
welf
are
max
imizi
ng
behaviour
assumed in neoclassical
economic
models. For example,
people:
1
stick with
what they know
2
follow
others
3
settle for
something that is
good
enough,
rather
than
searching for the
best (optimal)
4
procrastin
ate, putting off
things such as
saving
for
retirement
or
switching
5
stick with
the default option,
even if it is not the
best
6
may delay
making a decision
if
it
is
complex/confusing
or
avoid
it
altogether
7
are readily
confused,
and
prone
to
misleading advice
8
are much
more
concerned
about
possible
losses
than
possible
equivalent gains
9
are
inclined to stick
with the status quo
10
dislike
uncertainty
11
value
fairness
and
care
about
others,
rewarding or
punishing
behaviour
sometimes to
their
own
cost
12
sh
arply
discount
the future
compared
to
the
present
they care
more about
immediate
benefits
and costs
than those
in
the
future
often
make
decisions
tend
relying
on
t
simple
heuristics or
o
rules of thumb
b
rather
than
e
considered
calculation.
o
v A basic premise of
e behavioural economics is
r predictable
c irrationality. Marketing
o and advertising staff
employed by businesses
n already have and rely on
fi thorough knowledge of
d such behavioural
e characteristics to increase
n sales and boost profits.
t
aA
complement to
n conventional
d
analysis,
not
a
s
o substitute. One thing
mshould be stated clearly at
e the outset. Behavioural
ti economics is a complement
conventional
neomto
classical
economics
in
e
assist
s endeavouring to
marketing
mimproved
is decision / understanding
j buying patterns, not a
u replacement. Behavioural
d economists generally agree
g that markets are best
e understood by building up
h from the behaviour of
agents.
But
o individual
economics
w behavioural
d argues that behavioural
is bias is systematic and
ci predictable so that they can
be taken into account to
p
generate better analysis
li
and policies.
n
e
d
t
h Behavioural
e economics and
y Consumers
w
ill We have utilised the
b framework of behavioural
to
explore
e economics
actual
consumer
i
n behaviour and consumer
behavioural
tendencies
t that appear particularly
h relevant to the Mobile
e market in India. The
f behavioural
economics
u framework will be used to
t assist in explaining why
u some consumers may be
r making or not making
e decisions - e.g., to buy a
. phone , prefer a phone
over another. The key
13
14
behaviou
ral
economi
cs
insights
include:
whether the number of

African countries in the
United
Nations
was
greater or less than the
number on the wheel of
fortune.
After
they
responded, the subjects
were asked for their best
Ancho guess about how many
African countries were in
ring
Effect the United Nations. Even
though the number shown
The idea on the wheel of fortune
here
is was obviously random, it
that
exerted
a
significant
people's influence on the subjects'
choices reported guesses.
can
be In a similar experimental
influence design , MIB , Delhi
d
by School of Economics were
complete told about a mobile phone
ly
with a lot of high end
spurious features and then asked if
informati they would pay an amount
on. In a for that bottle equal to the
classic last two digits of their
study the Driving License Number or
experime Bank Account Number. For
nter spun example , if the last two
were
30,
the
a wheel digits
of fortune question was , " Would
you pay `30,000 for the
and
pointed phone ?"
out
the After that the students
number were asked , the maximum
amount they were willing to
that
came up pay for it. Their answers
to
a were strongly influenced
the price determined by
subject. by
the last two digits of their
The
Bank Account/ Drivers
subject License
Number.
was then Surprisingly , those with
asked
D/L Number of 50 or
under, were willing to pay
MIB,
Economics
Department of
Page
Commerce,
| 26
Delhi School of

2011
Too
Much
Choice
`16,500
or Choice overload
while
Conventional
theory
those onthe upperargues that more choice is
half werebetter. However, this claim
willing toignores the costs of making
pay
choices.
In
affluent
`23,500 countries,
consumers
on
become
average. caneasily
overwhelmed
with
choices,
Again,
making it difficult for them to
these
at
a
decision.
choices arrive
consumers
having
too
many
seem like
products,
features
or
mere
laborator contract plans to compare.
y games.This can lead to confusion,
However, random choice, or even
there arefailure to make any choice.
very
When decision-making is
serious complex the consumer can
economic make the wrong choice, and
decisions
market
and
that cancertainly
technological
developments
also be
influence in mobile phones are
d
byincreasing the complexity
consumers face. Moreover,
minor
variations there are allegations that
in
thesuppliers
might
be
way thedeliberately increasing the
choice iscomplexity of consumer
framed. choice (sometimes referred
to as confusopoly) and,
indeed,
using
other
behavioural insights their
marketing/advertising staff
have long had about
consumer
behavioural
bias to their advantage. A
contribution of behavioural
economics in this regard is
the warning it sounds that it
is not necessarily more
information
but
better
(perhaps
even
less)
information that is required
to be presented/framed in a
structured
easily
comprehensible format. The
success of IPhone is a
perfect example of a
success of a phone with
limited features or the
features which are required.
Heuristics
consumers often take short

Figure cuts (e.g., by following rules
of thumb) when the decision
5:
Consum environment is too complex
relative to their mental and
er
Decision computational capabilities.
Making These heuristics are
often accurate enough to be
useful, but may sometimes
lead
toconsumers take short-cuts
wrong/su to decision-making, the
b-optimal information provided must
decisions. recognise this and be easily
This
and
quickly
decisionfactor isrelevant.
For
instance,
relevant qualifications
and
to
theenvironmental
standards,
design ofespecially presented in fine
industry print are unlikely to impact
codes oron decisions.
regulation
mandated
informatio Endowment
consumers
may
be
reluctant
n
disclosure to give up what they have.
, includingThey may stay with the
informatio present service provider
e.g.,
the
incumbent,
n
because
of
misplaced
disclosed
loyalty,
a
failure
to
through
acknowledge poor choices
performan
in the past, or an irrational
ce
consideration of sunk costs.
indicator Barriers to switching to a
metrics. Ifnew
MIB,
Economics
Department of
Page
Commerce,
| 27
Delhi School of

2011
least resistance, particularly

if they feel that there is a
normal option e.g. people
phone
manufact may buy standard bundles
urer willoffered by mobile phone
reinforce suppliers, even if they do
this
endowme not want the whole bundle.
nt factor
which
Hyperbolic
makes it
all
thediscounting
consumers, and service
more
important providers too, tend to be
to ensureshort-sighted when making
that
switching decisions where immediate
is hasslecosts or benefits need to be
free, fastweighed against future costs
and
or benefits. For example,
cheap.
consumers may buy a
phone
looking
at
the
Defaul immediate offer of getting
ts aspecially
merchandised
default
Mobile phones in the name
inertia
of cricket teams (IPL Teams)
may
or F1 race teams because
operate they place more value on
since
the immediate benefits of
making athe offer, such as a heavily
decision loaded and exclusivity of the
to
opt-new handset, rather than on
out maythe long-term costs of being
take morehaving to use the costly
effort
phone and unable to switch
than
toto
access
lower-priced
opt-in alternatives and the latest
e.g.
antechnology.
In
short,
opt-in consumers tend to discount
default
costs that impact in the
would
longer term more heavily
automatic than benefits that impact in
ally
the short term. Service
extend aproviders/Manufactures, too,
mobile
may tend to apply the same
phone orhyperbolic
discounting
broadban (short-sightedness) so that
d contractthey attempt to maximise
unless theshort-term
revenue/profit
customer from
subscribers/buyers
expressly through pricing tactics that
opts-out. e.g., lead to bill shock,
(The
rather than focus on the
issue
islonger term benefits of
whether retaining
a
satisfied
the
customer. It may also lead
default
them to minimise costs of
should becustomer
service
and
an optcomplaints-handling.
out
unless the
customer
actively
optsin?)
Also,
consumer
s
may
tend
to
take
a
path
of
g biases consumer
choice is influenced by the

frame in which information
is presented. Presentation
of the same information in a
different frame, can lead to
a different decision. For
instance,
for
most
consumers, only 3% fat is
likely to be less appealing
than 97% fat free. In terms
of a telecommunications
example, a cash back offer
Figure 6 or a free new mobile
phone handset can be more
:
Hyperbo seductive to consumers
than cheaper calls at an
lic
Discoun equal or even greater value,
especially since there may
ting
be overconfidence on the
part of customers that they
will be able to keep calls low
through self-discipline.
Framin
Commerce,
Delhi School of
Economics
MIB,
Page
Department of | 28

2011
Figure 7: Normative
Policy Model
Risk/Loss aversion
the
preference for
avoiding loss is widely
considered to be greater
than the preference for
gain. Part of the reluctance
to switch from one supplier
to another may be due to
the fear that experience with
a new supplier is unknown
and may be worse. Risk
aversion may also be
influencing consumers to
overestimate the (shortterm) costs of switching, and
underestimate the longer
term benefits of switching.
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 29
APPENDIX A: Primary Survey Questions

1
2
3
4
5
6
7a
7b
7c
7d
7e
7f
7g
7h
7i
7j
8
9
10a
10b
10c
10d
10e
10f
10g
10h
10i
10j
11
12
Current City of Residence

Your Age
Gender
Occupation/Profession
Income Level (per month in INR)
How many phones do you have
Rank the features according your
priority
- Durability
priority
- Camera Features
priority
- User Friendliness
priority
- Sound Quality
priority
- Warranty Period
priority
- Battery Life
priority
- Internet Browsing
priority
- Email Sync Application
priority
- Social Networking
priority
- GPS
Which phone do you use
How often do you replace your old phone with a new phone
Tell us which Mobile brand satisfy a feature the best way possible - Durability
Tell us which Mobile brand satisfy a feature the best way possible - User
friendliness
Tell us which Mobile brand satisfy a feature the best way possible - Email Sync
Tell us which Mobile brand satisfy a feature the best way possible - Internet
Browsing
Tell us which Mobile brand satisfy a feature the best way possible - Social
Networking application
Tell us which Mobile brand satisfy a feature the best way possible - Value for
Money
Tell us which Mobile brand satisfy a feature the best way possible - GPS and other
high end
technologies
Tell us which Mobile brand satisfy a feature the best way possible - Voice and
Sound Quality
Tell us which Mobile brand satisfy a feature the best way possible - Music playing
features
Tell us which Mobile brand satisfy a feature the best way possible - Camera
Features and Quality
What is your main internet access
method
Which brand/(s) serve the purpose of giving the best smart phone
Say would you desire these new features or not - A feature on my mobile phone
that would allow
13a me to physically locate my friends and for them to locate me

Say would you desire these new features or not - A feature on my mobile/cellular
phone that would
allow me to locate shops, restaurants, hotels, etc, within a specifified radius of my
13b location
Say would you desire these new features or not - The ability to move my music,
television shows,
13c pod casts, movies, etc. to my mobile phone without storage problems
Say would you desire these new features or not - The ability to access product
information for a
product I am interested in buying by simply scanning a bar code with my mobile13d phone
Say would you desire these new features or not - Books, magazines and
newspapers will all be
13e available online to download onto your mobile
Say would you desire these new features or not - Watching 3-D Video in my
13f mobile
Any other comments or future expectations you would like to share about Mobile
Phone market
and Industry - Open-Ended
14 Response
Economics
P a g e | 30

2011
APPE
NDIX
B:
BEHA
VIOR
AL
ECON
OMIC 2
S
SURV
EY
QUES
TION
S
1
P
l
e
a
s
e
t
e
ll
u
s
t
h
e
l
a
s
t
t
w
o
d
i
g
it
s
o
f
y
o
u
r
d
ri
v
i
n
g
li
c
e
n
s
e number. If
you
do
not
have D/L, tell
us last two
digits of your
passport.
If
you don't have
that as well,
tell us the last
two digits of
bank account
number.
According to
our recent
market
research our
group found
out that there
is a
revolutionary
phone which
is getting
launched.
With all the
features
below beside
being a super
cool phone.
1. Face
Recognition
2. Voice
Assisted GPS
with
advanced
navigation
using MQRS
technology.
3. 3D
Video
Recording,
3D
video
playback and
gaming
without
glasses.
4. Universal Inbuilt remote
to handle all
devices
in
your home.
5. Lots
of
Hitech
features like
WiDi over WiFi.
Will you be
willing to buy
such a phone
at cost of say
the number in
question one
multiplied by
1000 rupees.
( If the number
is
pay 23k for
2
this phone)
3 2(a) Yes
,
w 2(b) No
ill 3 What is the
y
maximu
o
m money
u
that you
b
can shell
e
out for
w
this
ill
phone.
in
( In
g
thousand
t
s of
o
rupees.)
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 31

2011
APP
END
IX C:
FEE
DBA
CK
ABO
UT
PRE
SEN
TATI
ON
Date:
nd
-2
Sept
emb
er
2011
Prese
nted
by :
Group
10
Group Positives
Numbe
r
1) Finished well within time.

2) The data gathered was well put
forward.
1) well researched
2) some interesting stuf
3) PowerPoint design was crisp
1) Presentation from few members

of the
group was engaging with many new
insights on mobile market brought
up.
2) Market drivers and market trends
were
explained beautifully.
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 32

2011
1) Survey was informative and

detailed
capturing all needs of perspective
buyer of
mobile handset.
2) Presentation had variety in terms
of
examples, case studies.
3) Good use of figures and charts in
the
presentation.
1) Karela case study discussed.

2) Tapas was presenting in a lot
better way.
3) The survey was informative.
1) The survey conducted before the

presentation was excellent and
structured.
2) We saw case study (eg-fishermen
in
kerala) within the presentation,
which was
commendable since it was the
group to
incorporate it.
3)They had a very interesting topic
towards
the end of presentation, the
ANCHORING
EFFECT. We were expecting more
info
about it and would like to request
them to
elucidate this topic again through
another
presentation or case study in near

future.
1) The behavioural economics part
was
very good. It led to some new
knowledge of
Economics.
2) The data usage was done in a
very nice
way.. i.e. density, Tarif Cost Curve
and No.
of Users curve....
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 33

2011
1 The application of statistics to

) come to
reasonably concrete conclusions.
2 The last portion of the
) presentation was
very good.
3) Praiseworthy eforts in survey.
4 Behavioural economics- rare
) topics to
study.
11
1
) Good efort
2
) Informative
3
) Explanation was simple and crisp
1 A lot of data was presented and

) related
to.
2) Many new concepts were
introduced.
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 34

2011
Cherie Blair
Foundation for
BIBLI Women. Available

at
OGR online
http://www.cherieblairf
APHY oundation.org/ourwork/mobiletechnologyprogramme/womenand-mobile-a-globalopportunity.
Ariel
Rubinste
in:
Colin F. Camerer,
Discus George Loewenstein

sion of and Matthew Rabin
(2003):
BEHA
VIORA Advances in
Behavioral
L
ECON Economics:
OMICS Princeton University
Press.
.
In
Advance
s in
Economi Department of
cs and Telecom:
Econom
India Telecom
etrics
,Theory Vertical Report
and
2010.
Applicati
ons,
Available online at
Ninth
www.dot.gov.in.
World
Congres
s.
Dr Patrick Xavier
(2011):
Cherie Behavioural_Econ
Blair
_and_Customer_c
Foundati
omplaints_researc
on for
Women: h report.
Wome Available online at

n and http://engage.acma.go
v.au/reconnecting/wpMobile content/uploads/2011/
05/Behavioural_Econ_a
:A
nd_Customer_complain
Global ts_researchreport_FINAL.pdf,
Oppor updated on
tunity. 30/05/2011.
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 35

Gentzoglanis, A. &. Henten A. Elgar June (Ed.) (2010):
Regulation and the Evolution of the Global Telecommunications

Industry.
Hal R. Varian (2008):
Intermediate Microeconomics. A Modern Approach.

Eigth Edition: East-West Press.
Manjari Juneja:
http://www.expresscomputeronline.com.
Available online at
http://www.expresscomputeronline.com/20110515/coverstory01.shtml.
Mera Mobile Mera Saathi:
Uninor and GSMA mWomen launch mobile advocacy campaign

in Uttar Pradesh.
GSMA mWomen.
P.Antoine (2010):
Mobile phone market drivers.

Available online at www.privateline.com/archive/alcaatel.pdf.
Sheena S. Iyengar and Mark R. Lepper (2000):
When choice is demotivating: can one desire too much of a good

thing?
In Journal of Personality and Social Psychology.
Vodafone:
Studies and Policy paper- Vodafone.

Available online at
http://www.vodafone.com/content/index/about/about_us/policy/policy_papers.
html.
Economics
P a g e | 36

2011
&
Telecommunicatio
Xavier,
ns Policy. In A. &.
Patrick
(2010): Henten A. Elgar
June Gentzoglanis
Regulation
Behav (Ed.):
and
the
Evolution
ioural of the Global
Econo Telecommunicatio
mics ns Industry.
MIB,
Department of
Commerce,
Delhi School of
Economics
Page
| 37

Mobile Market in India

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Mobile Phones Market In India 2011

Mobile Phones Market In

Delhi School of Economics

Dr. Sumati Varma

MIB, Department of Commerce, Delhi School of

Mobile Phones Market In India

CASE STUDY: MERA

Mobile Phones Market In India

Mobile Phones Market In India

mobile users. We are in an

for value-market. Factors such as

Mobile Phones Market In India 2011

MOBILE HANDSETS V/S FDI

2003-04 2004-05 2005-06 2006-07

which can be seen in

There are many

Mobile Phones Market In India

ers in India reached

826.93 Million in April 2011

Mobile Phones Market In India

Mobile Phones Market In India

million from a mere 144

Mobile Phones Market In India

This rapid growth has

B only those services, the

Tariffs forOctober2006 to provide

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regime was implemented

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under license from Department of

Personal 1ISPs not providing

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service company is treated

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Key features include:

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with thePradesh and Bihar. The

Mobile Phones Market In India

from the perceived link

familial and social

Mobile Phones Market In India 2011

Figure 4: Discarding the Phone

More Findings of the survey:

MIB, Department of Commerce, Delhi School of

Mobile Phones Market In India

to most operators in other

Mobile Phones Market In India

acknowle urban areas in search of

infrastruc repeating. First, Indias

Mobile Phones Market In India

2007 was reached, quite

Mobile Phones Market In India

second, rather than a perminute, basis. That will be

with this transition for

well too,be low, and you may not

Mobile Phones Market In India

home markets all the time.

fisherme had come into effect, in the

better off. ent intervention. Mobilephone networks are built

Mobile Phones Market In India

the way many small

Wolff, co-now awaiting approval

Mobile Phones Market In India