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@3GSM India: Buying The Value Chain, Repurposing And Chasing The Current Opportunity

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For the rest of the 3GSM conference, I sat for the Content stream. The first session began with Neeraj Roy, MD & CEO of Hungama Mobile doing a Q&A with Viren Popli, Sr. VP -Wireless Interactive for STAR. This was among the best sessions of the content stream, largely due to Neeraj Roy’s objective questioning. Roy said that for any media, the entertainment industry has played a vital role in its adoption.
Popli feels that the content business has to be a seamless experience on the mobile device and there’s a huge opportunity in India – to provide every Indian a chance to view what he wants to, when he wants to view it. GPRS needs to be driven to 40-50 percent,  and not 10%. STAR wants to be present to provide content to users everywhere, and when you are uncertain of where the value resides in the value chain, you buy out the entire value chain.
For STAR, the low hanging fruit is the extension of their TV properties, though they are conscious of low bandwidth and poor connections. Humor is the largest category for them, though everything requires repurposing. They’ve been editing 16 of their top shows into 45s to 1min clips for internal consumption. Repurposing is a challenge.
When asked about case studies, Popli said that they’ve not done much video, but are gung-ho about mobile TV. The technology isn’t a problem – the real challenge is content. Only content can drive usage, and its stickiness. Mobile TV is for multitasking – most people in India are driven, not drive. So that time can be filled up. What works? Greed works. Interactive game shows work. Cricket works.
Thankfully, content in India is shot mostly in bright light, so there’s not much problem there. Mobile TV will have the same model as paid TV business.
It’s a question of technology - in KBC-2, one had a price point of Rs.6 for SMS and in KBC-3 it’s at Rs.2.40. The difference is because of the technology changes now allow that flexibility in pricing. The price points are critical – elasticity of price is important to a certain point, after which it doesn’t matter.
Off deck is the only way to go. Its not fair for the operator to decide where the consumer goes with data delivery. There isn’t a workable model in place for the long run - regulations are changing, and steady subscriptions and huge numbers are at stake.
India is a market with low GPRS connectivity. 30-35 devices would be compatible and we would be making announcements soon. They’re talking to other content providers and are trying to improve GPRS penetration – it’s key to anything else that we do.
When asked about how open operators are to improving the VAS situation Popli said that for operators, VAS is still not a strategic decision - at a national level, the focus is on getting more subscribers, while in the metro circles, the circle heads are more open. You still have to talk to various levels and departments for VAS- for revenues you negotiate with the commercial guys, for marketing, you talk to the marketing guys.
On UGC and Social media, he said that one side of India is using Social Networking online and another is trying to find an alternative to SMS. The India specific piece of Social Networking still hasn’t happened. STAR has launched a social networking beta on the net.
I asked Popli about whether one category can cannibalize on another with a change in technology, and he said when new technology comes to the top of the pyramid, and subsequently gets pushed down the line. We’re all chasing the current opportunity.

Jan 28, 2007 1:15 AM ET

Posted In: Mobile

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