Showing posts with label India. Show all posts
Showing posts with label India. Show all posts

Monday 22 December 2008

Indian m-Commerce service among top tech pioneers for 2009



JiGrahak is behind ngpay, the brand name of a free mobile-commerce service that allows consumers in India to shop, order meals, make charitable donations, do their banking, and pay their bills, among other things. Launched last February, ngpay already has attracted more than 230,000 users and has become the largest channel for mobile-based transactions with Indian Railways and HDFC Bank, and for movie ticketing. The company expects to have 1 million users by mid-2009.


More information available from this youtube video:


Wednesday 22 October 2008

Bank inside a Phone



Yes you read it correctly, A Little World (ALW), a Mumbai-based company, which has come up with a unique idea: turning a regular mobile phone to play the role of a bank’s branch.

Faced with the challenge of creating affordable solutions to enable penetration of banking in rural areas, ALW came up with this solution. The equipment costs not more than Rs 30,000 (pounds 400 or $700) through which a bank’s branch becomes functional and offers facilities like depositing/withdrawing money, electronic money transfer, crediting of pension money and also having an online passbook.


Other peripherals that make up the branch are a printer-cum-fingerprint scanning machine, cash box to store upto Rs one lakh in cash and a high resolution camera. The mobile phone can store data of upto 50,000 customers including the entire identification profile comprising a picture and six fingerprint templates among other details.


A big opportunity was unlocked after RBI announced a new policy initiative to allow banks to do business using the ‘business correspondent’ model. Under this, a bank ties up with third parties like ALW’s clients Zero Mass to conduct business in far-off areas on behalf of the banks. All the mobile phones have latest security features and are connected to ALW (the technology and backend partner for Zero mass) servers using GPRS or EDGE technology. The ALW server is in turn connected to the core-banking server of the client bank due to which a transaction is made possible just like it happens in a conventional way.


The critical necessity to opening a branch though is the availability of mobile coverage at the villages and ALW has tie ups with all the major GSM mobile phone operators in the country. Zero Mass currently has tie ups with 24 banks to operate their banking operations in remote and unserviced areas across 18 Indian states.


Christened as ‘Zero Platform’ for branchless banking based on mobile, a branch is typically set up in the village grocery store or panchayat office. Peripherals like the printer and camera are connected to the mobile phone using Bluetooth technology and the entire system has been designed so that it can function even during power cuts, which the villages often experience. “The selected handset (either Nokia or Motorola) has features for encryption and decryption of data through which we can make use of a public medium like GPRS to send data,” says ALW’s Chief Technology Officer Anurag Gupta.


In a short span of a year, ALW has set up over 2,800 branches for Zero Mass across the country and has plans to increase the total number of branches to 5,000 by December this year. The accounts are opened free for a period of 10 years and Zero Mass currently boasts of over 12 lakh accounts with around 20,000 added everyday. “The mobile phone operated branch is a great idea. I fail to understand why others in the same space like us have not made use of existing technologies to come up with feasible solutions like this which offer exponential growth opportunity due to low capital expenditure,” says Gupta.


Zero Mass’s motto is to increase electronic transactions like payments and crediting of accounts , Gupta says. Keeping this in view, customers are encouraged to use the account for electronic money transfer, insurance premium payments, depositing of National Rural Employment Guarantee Scheme (NREGS) wages and pension funds in the account. As a pilot project, mobile recharge payments are also being done through Zero Mass-operated branches.


ALW gets a certain amount as technical fees for rendering its services while Zero Mass gets a percentage as commission for each deposit and withdrawal transaction made at the branch. Gupta, also a director at Zero Mass, says the way forward for the company is to make use of the platform for more profitable transactions offering bigger commissions such as mobile phone recharges and railway ticket booking.

Monday 8 September 2008

India to finally unrestrict VoIP

Even though India supplies the world with software and IT engineers, till now it was not possible for people living there to fully use VoIP facility. It was illegal to call any phone using the computer. This is about to change at the Telecom Regulatory Authority of India (TRAI) has proposed that people be allowed to make calls using internet to fixed lines. What does it mean for the people? Well, the price of domestic long distance calls is supposed to halve to less than a penny (just over a cent) and international calls are supposed to get cheaper by 20%. It would also become cheaper for people to call India from abroad. Already in UK, Vodafone is allowing people to call India from a Pay as you talk phone for just 5 p per min. This may also help the Indian call centres as right now, the onshore companies have to pay termination charges when the calls get routed to India. This would mean that Indian call centres may become cheaper and more competetive.

Now for the small print; only the ISP's will be permitted to compete with the telephone companies using this VoIP. The fixed line and the mobile operators are up in arms about this because the ISPs are going to get free money whereas the mobile operators had to pay license fees for entry into the market.

This may not be a big problem for the time being as at the moment India only has around 5 million broadband subscribers whereas there are 287 million mobile subscribers and around 40 million fixed line subscribers. Also, the call rates are so cheap that additional investment in a PC and broadband connection (which is comparatively expensive) may not be lucrative.

If the recommendations by TRAI are accepted, there will surely be a VoIP revolution in India. The existing fixed line and mobile operators will have to come up with some challenging billing models to survive in future.

Saturday 29 March 2008

The story of WiMAX in India

Read an article on WiMAX in India in Rediff:

On March 4, India's Tata Communications, an emerging broadband player, announced the countrywide rollout of a commercial WiMax network, the largest anywhere in the world of the high-speed, wireless broadband technology.

Already 10 Indian cities and 5,000 retail and business customers use the product, and by next year Tata will offer service in 115 cities nationwide. The folks at Tata can hardly contain their excitement. "WiMax is not experimental, it's oven-hot," says Tata's Prateek Pashine, in charge of the company's broadband and retail business.

Of course WiMax is not new. Most everyone in the industry has been talking about it for years. Intel chairman Craig Barrett has been propagating its virtues in pilot projects across the world, including India and Africa.

Sprint will be rolling out a WiMax network in Washington next month, and in other US cities next year. Until now the most advanced use of WiMax has been in Japan and Korea, where Japanese carrier KDDI and Korea Telecom offer extensive WiMax networks.

However the Japanese and Korean services are not available nationwide - KDDI will have its major rollout only in 2009 - and most people use them as supplements to the wired services.

It's in emerging economies like India, where there is little connectivity and where mobile usage is soaring because of the difficulty in getting broadband wires to homes and offices, that WiMax is likely to see its full potential as a commercially viable technology.
Intel, whose silicon chips power WiMax, has been pushing for this technology for some years and its executives are practically salivating at the thought of the successful rollout in India.

"The more countries and telcos that get behind this technology the better," says R. Sivakumar, chief executive of Intel South Asia. Predicting that the new technology will make other types of Internet access obsolete, he boasts "Tata will set the cat among the pigeons."

Tata Communications has been working on setting this up for a couple of years, and successfully completed field trials last December. It has used the technology from Telsima, a Sunnyvale (Calif.) maker of WiMax base-stations and the leading WiMax tech provider in the world.

For now, the technology will be restricted to fixed wireless, but Tata plans to make it mobile by midyear. The company has invested about $100 million in the project, which will increase to $500 million over the next four years as it begins to near its goal of having 50 million subscribers in India.

The world is watching

Global tech analysts are will be watching carefully. Though WiMax is prevalent in Korea, the Korean service is a slightly different version, says Bertrand Bidaud, a communications analyst with Gartner in Singapore. It's a Korea-specific pre-WiMax technology called WiBRO.

But the Indian market is where the conditions for a WiMax deployment are the best, he says, because of limited fixed lines. That means Tata has fewer hurdles to overcome. And as WiMax scales up fast, it will give service providers greater flexibility and costs will drop equally rapidly.

"If it doesn't succeed in India, it will be difficult (for it to succeed) anywhere else, and Bharti, Tata has been virtually asleep, with a limited subscriber base for its limited product. In fact, even with as many as seven broadband providers in the market, the total Indian subscriber base is just 3.2 million and there is no clear market leader.
But with the WiMax rollout Tata can gain a leadership position and add "a few thousand subscribers a day," says Alok Sharma, chief executive of Telsima. Tata is, of course, going for the heavy-billing corporate customer - a target audience that is beginning to make big investments in technology.

Temple service via WiMax

But also important is the ordinary Indian retail customer who can watch movies via WiMax and enjoy Tata's other unique offerings. For instance, users can take in an early morning worship service at the famous Balaji temple in South India.

The temple permitted Tata to install cameras so that Hindu devotees from around the world could watch the proceedings in the temple around the clock. To get connected initially, users will simply have to go to a store, buy a router, install it, and then they become instantly connected. It will be as easy as buying apples, Tata executives promise.
The Tata rollout is a chance for India to become cutting-edge in mobile Internet services, say WiMax boosters. For India, which "always used last year's fashion to dress itself up," says Sharma, it is a chance to launch a brand new. fourth-generation technology that the world can follow. "India is becoming the knowledge centre of the world; it should take the lead in this," he adds.


There are some other bits which I got from one of VSNLs (now known as Tata Communications) presentation:

  • ISPs using 3.3GHz spectrum for WiMAX roll-out
  • At least 3 networks being built in all large towns
  • Best spectral efficiencies

Wireless Broadband opportunity in India bigger than:

  • Entire LatAm (predominantly on 3.5 GHz)
  • Korea (at 2.3 GHz)


Current deployments by Indian operators rival the biggest ofWiMAX deployments around the world. VSNL deploys the largest WiMAX network in a city across the world.

Soft launched on December 31, 2007 in BANGALORE:

  • Silicon Valley of India
  • 8 million people and over 10000 industries
  • 86% literacy ( national avg – at 61%) - second highest literacy rate for an Indian metropolis, after Mumbai.
  • More than 1000 software companies - Infosys and Wipro, India's second and third largest software companies are headquartered in Bangalore
  • The population of the IT industry folks in Bangalore is 5% i.e 400,000.
  • Bangalore's per capita income of Rs. .49,000 (US$ 1,160) is the highest for any Indian city.
  • Launched with 132 BTS, will be adding another 28 by March 2008
  • 3.3 Ghz, 12 Mhz, 3 Mhz/sector, 4 sectors85% of the city covered
  • The response has been far better than what we had anticipated
  • In 20 days we have installed an equivalent of 10% of the existing wireline base
  • Currently a huge backlog of orders to be installedCustomer experience has been fantastic
  • Additional BTS to ensure full coverage planned

Way forward:

  • Enterprise roll out into another 300 cities over the next 15 months
  • Retail roll out into another 15 – 20 cities over the next 15 months
  • Spectrum in 2.5/2.3 Ghz awaited

Sunday 23 March 2008

What can mobile operators learn from Laloo


I am sure a lot of you have no Idea who Laloo or 'Lalu Prasad Yadav' is. He was long term chief minister of Bihar state in India is well known for corruption and scandals (as are many other politicians in India). In 2004 he became the Railways Minister of India.

Indian Railways is a very sensitive topic. As much as people like to complain about it, its makes everyone proud. Its one of the biggest railway network in the world, employs over 1.5 million people and the total distance covered by the trains is 3.5 times the distance to moon.

In 2001 an expert declared that Railways will be bankrupt by 2015 unless privatised. It was making huge losses and was expected to make US$15.4 billion loss by 2015. Lalu turned it around in 2-3 years and now its made profit of U$2.47 billion.

To turn this huge organisation from loss making to profit making he followed some simple logic.
  • Reduce the fares instead of increasing them and the occupancy will improve
  • Increase the freight loading hours from 10 hours to 24 hours daily
  • Make everything simple for ordinarly people to follow including reservations
  • Once the basics are working keep improving the infrastructure and make further cost reductions

Now lets compare this to how mobile operators behave.

  • They provide big subsidy for the handsets but they think this gives them right to charge whatever they wish.
  • The tariff's are still not competetive for international calls and while roaming abroad. A simple call making and receiving for a UK mobile on roaming to US can be charged to £1.20 per min. Compare this to making it free using Skype. This puts off so many people in calling home when abroad and receiving calls on their mobiles. If its cheaper more and more people will make and receive calls when abroad.
  • Using data abroad could be like commiting suicide.
  • There are couple of networks who give huge student discounts but with them text messages can take upto 12 hours to be delivered.
  • Some networks have customer service open for limited hours and they charge calling the number even with the same network mobile.
The mobile operators like to complain that the voice call revenues are decreasing and there is still not enough data uptake. I would urge them to set their house in order before they complain. In the end the consumers will always find cheaper alternatives like VoIP and WiFi unless its something important. On the oher hand if some cheap options are available we do not mind trying them.