Impact of Mobile in the Small Business

8/8/2019 Impact of Mobile in the Small Business

1/21

IMPACT OF MOBILE

PHONES ON SMALL

SCALE BUSINESSES


2/21

DID YOU KNOW ???

The mobile subscriptions at the end of 2008 were 3.9 billion

(penetration of 59%) and has just crossed 4 billion in

May09.

Many developing countries still have mobile penetration ofless than 50%.

India (30%), China (47%), Cambodia (26%), and Africa

(39%).

The subscriber base is expected to cross 5 billion by 2011. Majority of the next billion subscribers are likely from India,

Africa and China.


3/21

RankCountry or

regionNumber of

mobile phonesPopulation % of population

1 China 720,000,000 1,324,190,000 54.0

2 India 488,397,000 1,171,497,000 41.69

3 United States 271,000,000 306,694,000 88.04

4 Russia 190,000,000 141,812,991 134

5 Brazil 169,800,000 189,985,135 89.37

6 Indonesia 140,200,000 231,627,000 60.53

7 Japan 107,490,000 127,790,000 84.11

8 Germany 107,000,000 82,210,000 130.15

9 Pakistan 95,918,729 166,613,500 58.60

10 Italy 88,580,000 60,090,400 147.41

11 Mexico 79,400,000 109,610,000 72.44

12 United Kingdom 75,750,000 61,612,300 122.95

13 Vietnam 70,000,000 87,375,000 80.11

14 Philippines 67,900,000 92,226,600 73.62

15 Turkey 66,000,000 71,517,100 92.29


4/21

Introduction

The entrance of the mobile

phone as a resource in Indian

small business networks has in

a radical way changed them.

One general effect of the

mobile phone penetration is the

increase in efficiency and time

saving.

Being able to provide good

service has become important.


5/21

Impact On Indian Economy

The number of subscribers in India as on October 2009 is488,397,000

The impact of mobile technology on GDP is twice as large indeveloping countries as in developed countries.

Increase in penetration by 10% in India would producetremendous end-user value of at least $10 billion, equivalentto an incremental 0.38%-to-0.61% contribution to GDP.

Global trends have suggested that small business is thebiggest contributor to the economy of India.

As more than 65% of its population lives in rural and semirural areas, small business is one of the most viable options

for the population residing in these areas.


6/21

Current Scenario

48 million rural subscriberscompared to 32 million urbansubscribers in the first 6months of 2009

Due to the surge in usage,there are now a total of 136million mobile users residingin villages.

While this is not muchcompared to the 329 million

mobile consumers in the urbanareas, market watchers predictthat the next 500 millionmobile subscribers will comemostly from the underdeveloped regions.


7/21

What are the Operators doing?

The cities and towns are saturated, with the tele-density ashigh as 95 per cent.

However, the tele-density in the rural areas is just 17 per centwhich means there is a huge unmet demand in these regions.

The rural mobile user base is likely to overtake the urbansubscriber base in the next 3-4 years

Biggest gainers - Bharti Airtel, BSNL and Vodafone Essar

Reliance Communications and Tata Teleservices, the twooperators with both GSM and CDMA networks, have not

been able to penetrate the rural market yet despite having a

strong focus in this segment. According to the TRAI, Reliances rural user base has

increased from 8.95 million to 16.36 million and Tata Telehas only 2.96 million rural users.


8/21

Impact of rural penetration

Low tariffs combined with low minutes of usagehave driven telecom operators revenue to anegative growth for the first time in Q2 2009.

Compared to a combined revenue of Rs 32,211

crore in Q1-2009, the revenues for the Q2 were Rs29,507 crore, which is 9 per cent decline.

Operators should address the issue of decliningrevenues by bringing in applications and servicesbeyond voice and SMS.

Innovation through third generation technologiesshould help the operators improve their financeseven as they continue to add more subscribers.


9/21

Productivity Gains to SmallBusinesses

Serve existing customers

Get price information Coordinate with partners

Find new customers

Cut out middlemen

Start new businesses


10/21

Small Scale Businesses

Shopkeepers

Water suppliers

Metalwork shop/mechanic

Fishermen Farmers

Autodrivers

Vegetable vendors

Vajra bus service

Bicycle workshop

Tailor

Laundry service

Pharmacist


11/21

Effects on Small Scale Business

Shopkeepers

Before the introduction of the mobile phone there was a problem that

every shopkeeper had to go and buy supplies. They bought these supplies

from people who also mainly operated during normal business hours.

Either they had to sit in their shop and sell or close the shop and go out

and buy stock.

Now that they have mobile phones they rearrange their supplies. They call

the suppliers, decide what they want, and at what price.

Therefore, since they got access to a mobile phone, they can stay in the

shop and sell the whole day.


12/21

Water Suppliers

The water suppliers own, or at least have access to mobile

phones.

Most of the water suppliers have stopped going to the designated

place to sell the water.

They give all their customers their number and wait for them tocall instead of waiting for them to come.

The water suppliers do not have to wait for customers at the

designated place and so they have time to go to more customers.

Before the water suppliers were only able to take on customers

when they where standing at the designated place. Now they can talk to customers and take on orders at any time.


13/21

Metalworkers and Various Repairmen

This group of businessmen spend most of their time in the shopdoing repair jobs for different customers.

It is common that they go out and do repair jobs where thevehicles break down or the accident sites.

This is something that has increased a lot since mobile phonesbecame popular.

Also before they had mobiles they spent a lot of time on gettingsupplies.

Since every repair job is unique and stockholding is both

expensive and space demanding the mechanics used to go andbuy supplies almost every day.

Now they make calls and order in supplies according to theirneeds.


14/21

Fishermen

In Thiruvanthapuram Handygo, a leading wirelesssolution provider in mobile has tied up with theHyderabad-based Indian National Centre for OceanInformation Services (Incois) to provide oceanic

information to the local fishermen through theirmobile handsets.

The inputs given out pertain to where and when tofish, potential areas of possible good catches and

prevailing weather conditions. This goes to make the lives of fishermen a lot

easier as they are made aware of the facts andfigures before going to the fishing zone.


15/21

Impact ofMobile TechnologyOn Small Scale Businesses

The report identifies seven service areas that could be

transformed for rural communities by mobile

communications:

1) Transport

Public transport is not available in 45% of villages in

India, and only 1% of Indian households owns a vehicle.

Mobile communication could be used to create and co-

ordinate car sharing schemes amongst villages, and

provide real-time information about public transport

services and the ability to make request stops.


16/21

2) Micro Commerce

Small businesses in rural areas often have to travel

significant distances to markets or other places they can

distribute their goods.

Arrangements cannot be made in advance with buyersor other sellers.

Mobile phones could significantly change the logistical

issues faced by rural traders and home entrepreneurs, by

affording mobile-based ordering systems, delivery

requests.


17/21

3)Finance

Mobile phones are already being used in rural areas as a tool forfinancial transactions by swapping airtime for goods and

services.

4) Healthcare

New mobile services in this area could better connect rural

communities, creating networks to share and discuss health

information and advice.


18/21

5) Governance

Accessing information about public services remains a

major challenge for many rural communities.

Mobile phones provide a new platform through which rural

communities will be able to access government information

and services, using text, data, and audio browsing techniques


19/21

Conclusion

The entrance of the mobile phone as a resource in Indian small

business networks has in a radical way changed them.

The mobile phone has triggered a series of changes in

activities and resources both within the companies and in therelationships between them.

One general effect of the mobile phone penetration is the

increase in efficiency and time saving.

The ultimate consequence of the effects the mobile phones

have had on the relationships in the business network is an

increase in income for the businessman.


20/21

Conclusion

The changes in the relationships,

and its effects on small business is

as follows:


21/21

Thank You

Impact of Mobile in the Small Business

Documents

Transcript of Impact of Mobile in the Small Business