From Do-Not-Call to Do-Call

Moving from Do-Not-Call to Do-Call will suddenly create tectonic shift in this important market.

What it does is it empowers the phone users to prevent the marketing companies from calling them. Interestingly, the do-not-call was supposed to help the mobile users but it has been read that it is not as effective as it was hoped to be.

Would be interesting to learn if the do-call registry model has been used in any country other than India.

The very interesting "Missed Call"

This article in WSJ shows the power of technology through this innovative use of mobiles by the fishermen  in Tamil Nadu. This article points finger to the miserable weather forecasts of traditional agencies that makes fishermen feel the need of above SMSes. In developed countries the forecast is quite accurate and there is no need for such services.

But then, India is a market full of innovative uses, especially in the mobile space. The earliest innovation being the missed call. For readers from outside India, a Missed Call is where a caller calls and disconnects before the call is picked up. With mobile users, the caller's number is displayed on the mobile of the called party. It is quite widely used in India.

Now what is the use of a missed call? I will list few scenarios, but I am sure there are many more depending on the inter personal communication protocol (IPCP). I will come to IPCP a little later.

Scenarios:

1. Caller does not have money to spend on a call and wants the other person to call. He/she makes a missed call. The other person calls and speaks. This is probably the most basic of the uses.

2. Both parties have agreed to meet at some place. Whoever reaches first will give the other person a missed call.

3. A missed call is made to economically convey nice emotions like, "I miss you" or "I love you".  The thoughts reach the destination without costing anything to the entrenched parties.

So what is IPCP - Consider scenario 2 above. Now the 2 people have decided that a missed call means "I have reached". IPCP is established and will expire with the missed call.

Similarly, say A and B are going to a wedding. They are reaching the venue directly and they need to buy a gift on the way. Whoever buys a gift first gives a missed call. Similar to above, yet different.

One can think of hundreds of such examples. The idea of IPCP is the users decide the meaning of the missed call. And who framed the concept of IPCP....well that would be none other than yours truly :)

And, IPCP also leads to some really amusing and sometimes embarassing situations. More on that in some other post.

3G in India...more discussion

Here is an article that discusses the role of rural market for 3G providers.

http://www.mobilebusinessbriefing.com/article/rural-areas-to-drive-indian-3g-growth

Interesting forecasts there.

As I had mentioned earlier, the recent cut in prices is probably a beginning towards the rates that will arise once 3G markets open. Since the rural areas still have potential, they need to be tapped. It is obvious that service providers would want to generate as much demand there as possible.

Accountability in Advertising?

There is an ad that shows a kid being fussy over normal food (veggies, rice, roti and dal). The mother then pulls out a powder that is mixed in milk and the kid is happy. The ad says that this product gives all nutrients of a food to children.

Really? One tablespoon of the powder and one tbsp of sugar and a cup of milk? I just have one thing to say....Get the executives of this company give a written commitment that they and their children live on this mixture. Nothing else. Breakfast, lunch and dinner - this mixture. Lets measure their "growth" with this.

I bet if this is raised, the only thing that will come will be a font-6 note in the last 3 seconds of the ad that basically means "Don't take this ad too seriously.".

Are such ads not too much to digest? They are misleading to the point that they can affect the health of children. In fact, I am ok with those fairness creams which you know need to shout so much to sell. But things that you consume...

Such ads need to be regulated. They better prove what they say. No irresponsible claims. Just like pharma cos. need to go through stringent approvals before their medicines can be sold, certain advertisements should go through approval. One cannot have such ads gone unnoticed .

Or perhaps there is scope for US like litigations where companies are forced to pay through nose when people take the ads a little too seriously and then file suits.

To avoid both above, the players would do well to be rational and self-regulate what they do and what they publicize. Reasonable claims are the way to go.

WSJ reports taxi disputes in Aamchi Mumbai

WSJ is reporting how old cabbies are trying to block newcomers.

I wonder why this focus on cabs in Mumbai?

I know for sure Meru Cabs offers very good service but I don't have big problems with old cabbies either. You get them everywhere, mostly they are reasonable and go by the tariff card. They are certainly threatened by the new nice cabs...but as far as I remember there were also "Cool Cabs" of Premier Padmini as well. While they still made you feel the exact texture (is that the word?) of the road, yet they did offer air-conditioning.

As is true with everything else, old has to give way to new and resistance is... not just limited to electrical circuits.

Mobile Charging - Case for alternative energy

Hmmm. Interesting. This report from GSM World says that emerging markets that can provide for alternative means of power off grid for mobile charging may lead to an eventual increase of revenues by about 10% or so for the mobile industry.

I remember when I was a kid, some of my cousins from US used to have Solar powered calculators. They used to work fine. Rarely did I see these devices need battery replacement. That was 20 years ago and I am sure that technology has evolved over the years.

So why exactly are solar powered mobile phones still seen as a thing of future? Really, I understand the limitation for equipments like A/Cs or heaters which consume more power. But small mobile phones can come with solar power charging at least.

Consider this case, from this report, 485 M cellphones use chargers of about 1-2 W rating ...so 485MW. If 1/5th of that is charged through solar (or other alternative means), then the net saving is about 100MW, imagine how many houses can be added to the grid. (OK, this calculation is way too simplistic and you can see 2445 logical problems in that...but I hope I made my point.)

While some handset manufacturers are bringing out such devices, it helps to have an agreement on such things. There can be a coordinated effort so that there is some level-playing field in terms of effort and cost. The output in terms of technology should lead to modifications that may be mandatory.

In general, network connectivity and electrical connectivity have a lot to do with improvement in standard of living. The sooner the divide is bridged, the better it is for all of us. The greener the way to bridge the divide, the better it is for our next generation.

Telecom stocks hammered - Why the haste?

Indian telecom stocks have been heavily hammered in the last few days. I was surprised.

Further to the pay-per-call, there was the 50 paise call and the discussion about possibility of mandate for per-call pulse that caused almost panic selling in the markets. It seems a hasty conclusion that all telecom is going to lose overall...

Following points need to be thought of in the context of Indian telecom scenario:
1. The ARPUs are falling but they still seem to be a function of the demand-supply equilibrium. Consider this, which markets are still untapped in India? Rural markets. The teledensity of rural ndia is far behind the urban. So the rural market is probably stimulated at a lower price and the industry is probably responding to that.

2. Commoditization is natural but this rural market would still allow the business to be a good business because of the volumes.

3. Now, in the recent times, operators have adopted several measures that are cutting costs like Infrastructure sharing, outsourcing their network operations etc.

If the operators are willing to pass this cost savings to customers, then that is actually good news for customers. Perhaps the demand generated by this will more than compensate the reduction in revenues.

4. The 3G scenario has still not even started. I am sure every operator definitely would have a strategy for 3G. They will find new ways to generate interest in 3G apps in the urban market. Particularly, business customers and the youth segment.

5. Operators are also trying to unlock value by spinning off businesses like tower business etc.

Considering this, I thought it was a little premature to assume that telecom story is over. I would rather wait and watch.

Miscellaneous and interesting

Interesting news clips I found today -

1) First news from USA where AT&T gets rid of a part of its message when routing call to the Voicemail. Now this is interesting because it reduces close to 5 seconds of call time for every call forwarded to voicemail. Towards customer delight...

http://pogue.blogs.nytimes.com/2009/09/09/att-relents-drops-paging-instructions-from-voicemail/


2) Next refer to Strategist section of this week's Business Standard on State Bank of India. The article tells a lot about how the current SBI chief, Mr. O P Bhatt, is strategizing the turnaround of SBI and within SBI.

I had written my experience some days ago. After reading the article, I wonder if SBI employees aligned to its goals? It does not seem so.

I agree the load in branches is massive but there has to be some operations strategy. For example, one thing to adopt is give the customer everything that is needed to keep him/her out of the branch like passbook, ATM card, online access, IVRS number etc. I can tell every customer has to visit at least 3-4 times to just get all this.

The article also has an interesting discussion on SBI Home Loan rates and possibility of a smaller version of subprime crisis.

Check out the article, very interesting read (a little long though).
http://www.business-standard.com/india/news/are-you-being-served/369333/


3) Next - Nortel's fire sale - Nortel's Enterprise business goes under the hammer tomorrow.

http://www.allaboutnortel.com/2009/09/08/details-about-fridays-enterprise-auction/

4) Sports - Hurray to Vijender for ensuring that medal for India. And another hurray to Leander Paes and Mahesh Bhupathi who have both reached finals of US Open. Whoever wins, we will be proud of both of them. Hurray to Pankaj Advani as well. It is heartening to see India perform well in such competitions.

True Story of the Jet-i !

Question - What's the difference between Delhi Autowalla and Jet Pilots?
Answer - Delhi Autowallas are healthier than Jet Pilots!

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Unconfirmed sources predict "Jet Airways' pilots may be awarded the preventive healthcare award for protecting passengers from possible contagious infections on 130+ flights in September 2009. Selfless pilots give up a day's work to ensure the passengers do not get sick or unwell because of pilots' state of health."

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More unconfirmed sources analyse today's strike as Jet Airway's effort to help Air India's revival by diverting passengers to AI.

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Reports - Economic times report

NDTV Article

Auto Rickshaw strike in Delhi

Delhi is a place where many things happen arbitrarily. One of them is the very Indian phenomenon of autorickshaw.

The autorickshaw-walla from Delhi is an entrepreneur at heart. He is the model of rational human being that the Microeconomics text book talks about. He perfectly understands not only his well-being, but also that of his tribe of autorickshaw wallas.

Just go to India Gate and try to get an auto to anywhere. It starts with 50 Rs. even if the place is 1 kilometre away. Then you bargain, feel angry, cheated and humiliated when every auto walla asks for the same 50 Rs. You say, "Lets go by the meter" and they just walk away.

And why just India Gate, go anywhere in Delhi, the autowalla is just the same, "Your money is mine" attitude.

Alright, that is one part of story, now the next - they don't go where the passenger wants to. They go where they want to.

And now, they bring the city to the halt. I just hope no one gives in to them. Make them run on the meter. Make them follow the rules. Impound those vehicles whose drivers refuse to ply passengers. And yes, start good public transport (especially safe buses) that make sure that autowalla starts following rules. Incentivize good behavior and penalize bad behavior.

Also, improve financing to them through usual banks. It is said that loanshark's extorting skyhigh interest rate is the cost that they pass on to the customers. They certainly deserve more credit lines on normal rates.

BTW, during the strike, there was no increase in bus frequency to ease people's problems. Autowallas know this and they are right in thinking that people are in trouble.

Just like Delhi, Nagpur is another place where autowallas run the show. Mumbai, Pune, Aurangabad, Ahmedabad on the other hand have generally disciplined autowallas. Here is a Freakonomics article that attempts to explain the difference:
Why is the Delhi autowalla so different from Mumbai autowalla?

Fifth P of Marketing - Psychology

Borrowing this "fifth P" term from my friend Paddy, some more thoughts. My flight to Mumbai was a lesson in this aspect.

The flight takes off, water bottles are distributed. After 30 minutes or so, the air hostesses announce opening of snacks counter. This is a low-cost pay-per-snack airline. The air hostesses quietly and efficiently ask with the nicest smile on their faces, "Sir would you like a sandwich or a cup of tea or coffee". Guys remain guys, many say yes.

One chap, who does not seem hungry, still buys the sandwich. He says his wallet is in the bag and with great difficulty (he is tall) tries to draw his wallet out of his bag which is in the overhead bin. From my seat, he looked more and more like a filmfare award trophy as he bent his elbow. After about 30 seconds, he gives up. The attendant, then tries the same, but in vain. Next, she climbs on the seat side, but is not able to draw the wallet.

Her colleague, with an even larger smile, says, "Its ok Sir, please pay after the snack." The passenger is on cloud nine. Such care, such friendliness.

Passengers on my adjacent seat were thinking of coffee, when suddenly one of them says, "I will have sandwich, I am hungry".

Then, suddenly, one of the passengers started feeling cold. He beeped for the attendant. The attendant comes along and shows the fellow how to reduce the fan on the top. Yeah, right, it is quite incredulous to see 40 something year old man not being able to turn down the speed of the AC wind. That was followed with another 2-3 beeps...someone wants water, someone has a question if he can turn on his laptop...Attendant responds, "Sure sir" , "Yes sir, but please turn it off when landing".

More sandwiches....not that it has any apparent connection to the politeness.

Amazing, how much we people want to behave like babies when allowed to. A flight is the best place to be a baby. I want water, sandwich, it is too cold, too warm, my bag does not fit, can i have aisle seat....sure sure sure...is the answer most of the times.

Well, the airlines thrive on such passengers who value-add to their services.

Coming to the mathematical part -

So the sandwich in focus here may be described as follows:
3 slices of bread = 3 Rs.
2 small cube of butter= 5 Rs.
Cheese slice (maybe , I don't know) = 5 Rs.
4 pieces of tomato and cucumber each = 4 Rs.
Ultra Clean kitchen = 10 Rs. (guesstimate)

Qualified chef doing what a 7th standard student can do = 40 Rs. (I am generously taking 10 minutes for assembly of this simple item and Rs. 240 per hour which is quite expensive for this job anyway)

Ketchup sachet = Rs. 5

So this adds up to Rs. 72 per sandwich without building economies of scale into this.

Folks pay upwards of Rs. 100 for this item... this is the magic of the fifth P - psychology.

The 5th P - Psychology is well understood by industries like aviation, hotels / tourism and these days even banking, real estate etc.

(Link to Paddy's article - Consumer Insight )

Good News for mobile customers

Very good piece of news for mobile customers. All manufacturers of handsets have agreed to standardize the charging socket. That is excellent.

The consensus happened at the Mobile World Congress some time ago!

In fact, I have been asked many times by people, why do phone companies do this? There was a lot of merit in the argument for standardization. I guess the only reason this took some time was because the industry is so young. It takes time for such things to happen. Many times, an incumbent in position of strength is not willing to let go. Other times, the companies are simply not talking to each other. Forum's like the MWC are helpful in such case.

I am sure it took longer to standardize usual electrical wall sockets. In fact, even today in India the usual 5 Amp socket comes in 3-4 sizes. Either the width between L-N holes is too small and your cannot plug the pins in OR the diameter of the socket is so large that the pin just falls off...

With mobile phone makers being limited, at least we can be assured that customers don't have to put up with such nonsense.

Here's the link if you want to read more.

Regards,
Siddharth