When subscriber growth starts slowing and when mous

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Unformatted text preview: subscriber. Even though declining ARPUs have been a concern to operators, they have been offset by increasing MOU and staggering subscriber growth. When subscriber growth starts slowing, and when MOUs start becoming inelastic, the downward pressure on ARPU becomes even more significant. Operators will have to work on the twin front of increasing ARPUs through data and value-added services as well as by lowering costs through innovative business models. Data, driven by 3G and WiMax services, will exert a positive impact on ARPUs. Mobile internet, mobile entertainment and mobile banking are expected to gain significant traction with the introduction of 3G and WiMax services. Wireless phones: the emerging conduit for banking As mobile operators are looking to introduce mobile banking, the Reserve Bank of India (RBI) has come up with guidelines for implementing it.15 While security is definitely an issue, today there are more wireless phones than savings bank accounts in India.16 ARPUs and MOU to stabilize 500 800 200 INR 300 442 236 496 473 511 522 527 400 209 188 100 169 160 152 - 200 0 2007 2008F 2009F Blended ARPU (INR) 2010F 2011F Blended MOU 2012F F = Forecast Source: CII-Ernst & Young analysis, TRAI Performance Indicators December 2007, AUSPI-CDMA Statistics 2007 14 CII-Ernst & Young analysis 15 http://rbidocs.rbi.org.in/rdocs/notification/PDFs/87664.pdf 16 14 600 http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=342 India 2012: Telecom growth continues Minutes 400 Socio-economic characteristics that enable mobile banking Economic Detail Standard of living (Rural economy) ► • High cost of the access to the banking services/ High transaction costs ► • Banks are mainly in big cities, hence difficult to access Poorly developed transport and financial sector ► • Geographies like hills and deserts ► • Limited transport services ► • Weak and not very accessible banking environment for the population Telecom Infrastructure: strong penetration rate of the mobile compared to fixed telephone • • • • Joint families Sociological Characteristics ► • Family gathers in a single place ► • India: concept of the “joint family” relates to 70% of p...
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