SMS & Bluetooth Usage in Indian Enterprises

SMS & Bluetooth Usage in Indian EnterprisesVish Bajaj, CEO, ValueFirst : 

1 SMS & Bluetooth Usage in Indian EnterprisesVish Bajaj, CEO, ValueFirst Mobile Tech and Media Convergence Seminar Intercontinental Hotel, New Delhi1st Aug 2009

Agenda : 

CONFIDENTIAL 2 Agenda Enterprise Messaging Market Supply Demand Use Cases Bluetooth Market Supply Demand Use Cases

Slide 3: 

3 Enterprise Messaging Market in India

Enterprise Messaging Market in India : 

CONFIDENTIAL 4 Enterprise Messaging Market in India Market Size - 350 Crores (Operator Share 155 Crores) A2P Push – 300 Crores (Operator Share 120 Crores) P2A Pull – 50 Crores (Operator Share 35 Crores) Y-O-Y growth rate 80%-85% Largest Operator – Tata with 60%-65% market share Largest Enterprise Messaging Company – ValueFirst with 12%-15% market share

Slide 5: 

5 Enterprise Messaging – Supply Side

Enterprise Messaging Market in India – Supply : 

CONFIDENTIAL 6 Enterprise Messaging Market in India – Supply Mobile Operators Interested in large deals Mostly a supplier to VAS companies/Aggregators Lack IT skills Modem-based solution providers Small companies operating in local markets Small usage (typically marketing messages) Dying segment

Enterprise Messaging Market in India – Supply : 

CONFIDENTIAL 7 Enterprise Messaging Market in India – Supply Internet-to-mobile application providers Rapidly growing web based companies Rarely direct SMSC access, usually get connected to a larger VAS company Examples ZNI SMS, Swift SMS, ZipSMS, SMSCountry, SMSJunction MVASPs Mobility Middleware based client server architecture models High cost structures for value addition Examples ACL Wireless, Air2web, Cellnext, Netcore, One97, ValueFirst etc.

Enterprise Messaging Market in India – Supply : 

CONFIDENTIAL 8 Operators Tata selling bandwidth Other operators selling on per SMS (Airtel most expensive) Some operators have allowed VAS companies to install their own SMSCs on hosting charges plus revenue share Vodafone directly selling to Enterprises New operators joining the race Enterprise Messaging Market in India – Supply

Enterprise Messaging Market in India – Supply : 

CONFIDENTIAL 9 Web based companies 1-10 people companies Specialist on web selling using SEO Per SMS pricing No IT integration, minimal value addition TRAI violators (some !), cutting !! Revenue in the range of 1-3 Crores per annum Low rates for low volumes (have low overheads so can work at low arbitrage) Circa 50-70 such players in the country Enterprise Messaging Market in India – Supply

Enterprise Messaging Market in India – Supply : 

CONFIDENTIAL 10 MVAS companies with Enterprise Messaging Usually per SMS pricing (innovating here !) 20 – 250 people companies Higher value addition Seeking higher rates but unable to get the value addition benefit Follow TRAI Revenues in the range of 5-50 Crores per annum Currently loosing money as indirect costs range from 0.5 Crores to 1.5 Crores Circa 10-12 players Enterprise Messaging Market in India – Supply

Slide 11: 

11 Enterprise Messaging – Demand Side

Enterprise Messaging Market in India - Demand : 

CONFIDENTIAL 12 Enterprise Messaging Market in India - Demand Social Media (Indyarocks, Google, Gupshup, MyToday) – very large volumes SMS/Semi-SMS based models – m-payment, mobile advertising BFSI – large volumes FMCG/Retail companies – promotional content Corporate & SME sector getting stronger – aggregated demand already at reasonable volumes Demand growing phenomenally Expectation of unreasonable rates Customer does not want to pay for value

Enterprise Messaging Market in India - Demand : 

CONFIDENTIAL 13 Enterprise Messaging Market in India - Demand Demand generators Low SMS rates has driven consumption New models to drive it further New operators may reduce prices further Demand killers Interconnect in the offing MNP – may impact demand as could result in price increase (Number lookup costs) TRAI regulation – poor implementation impacting genuine clean transactional traffic

Slide 14: 

14 Use Cases – Vertical Applications

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 15 Enterprise Messaging Market in India – Vertical Use Cases Social Communities Mytoday – editorial content SMS Gupshup – user generated content Google – ugc, sms search Indyarocks – user interaction

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 16 BFSI - Banking Daily/weekly/monthly/quarterly Account Balances Account balance threshold alerts Salary credit, Cheque deposit, Cheque bounce alert Interest rate change/Bank charges alerts Promotional messages on new products/services Bill payments Order demand draft, cheque book etc. Issue stop payment notice Bank balance, exchange rate enquiry (SMS Bal 123456 to 56070) Enterprise Messaging Market in India – Vertical Use Cases

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 17 BFSI – Insurance Premium payment reminders to customers Policy renewal reminders Weekly updates of targets to field sales force Product launches to sales agents/ customers Leads distribution to sales force Sales contests Enquire Claims status Lead generation (SMS Life to 56070) Enterprise Messaging Market in India – Vertical Use Cases

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 18 BFSI – Loans/Credit Card Companies Reminders for EMI payments Change of interest rate alert Cheque bounce/honour alert Enquire loan/credit status Promotional offers - new schemes/promotions Special loan offers to premium customers Credit limit exceeded alert Monthly status of reward points Report lost/stolen card (SMS LOST 3768123456781234 to 56070) Enterprise Messaging Market in India – Vertical Use Cases

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 19 BFSI – Stock Brokers/Mutual Fund Information on predefined price triggers Query stock prices Day trading tips Inform daily highs and lows Various alerts - DP transaction, margin, stop loss Alerts on change of interest rates Alerts on high and lows of mutual fund/bond prices Promotional messages - new schemes Enquire NAV status Enquire redemption status Enterprise Messaging Market in India – Vertical Use Cases

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 20 Education Exam schedule/results as SMS to parents/students Admission schedule/results announcement Fees payment confirmations/reminders Student's progress report to parents Assignment information News/Events broadcast Rainy day broadcast, School Transport Information Customised wishes/greetings Emergency/urgent alerts to parents/students Lead generation on the short code (SMS CL to 56070) Enterprise Messaging Market in India – Vertical Use Cases

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 21 Healthcare Reminders to patients for timely preventive check-ups Vaccination, Pollen count alerts Patients can query/receive diagnostic/path lab reports Alerts to patients on change of appointment Send OPD schedule updates to doctors Promotional messages (e.g. free diabetes test this weekend) Enterprise Messaging Market in India – Vertical Use Cases

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 22 Placement Services Job alert to candidates Candidate alert to employers Interview schedule to candidates Bulk push to job applicants of test/interview results CV triggers by SMS Enterprise Messaging Market in India – Vertical Use Cases

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 23 Real Estate Push pre-launch and post-launch alerts via SMS to the prospective investor and buyers Instalment reminders Construction progress milestone update Customers can enquire the status of their application from the developers Customers can enquire the availability of space for rent/purchase Developers can generate/receive leads/enquiries via a short-code which is promoted through TV/print media Enterprise Messaging Market in India – Vertical Use Cases

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 24 Retail Sector Discount offers to consumers Event alerts to consumers Loyalty points status Stock in store alerts SMS-based comparison tool Automated SMS reminders to franchises/dealers to improve the account receivables situation Franchises send order confirmation over SMS to reduce the lead time and inventory holding cost Enterprise Messaging Market in India – Vertical Use Cases

Enterprise Messaging Market in India – Vertical Use Cases : 

CONFIDENTIAL 25 IT Enabled Services Critical failure alerts Process recovery alerts Escalation to higher level if problem not attended by the assigned resources Service history MIS to stakeholders Enterprise Messaging Market in India – Vertical Use Cases

Slide 26: 

26 Use Cases - Horizontal Applications

Enterprise Messaging Market in India – Horizontal Use Cases : 

CONFIDENTIAL 27 Sales Force Automation Supply Chain Management Customer Relationship Management Management Information System Human Resource Management Enterprise Messaging Market in India – Horizontal Use Cases

Enterprise Messaging Market in India – Horizontal Use Cases : 

CONFIDENTIAL 28 Sales Force Management Alerts on salary credit, policy changes etc. Updates on company performance, achievements etc. Reminders of periodic performance review deadlines Updates on weekly/daily individual targets Region/Product wise MIS on sales performance Dealer communication - alerts to dealers on price change/new products etc. Order placement and delivery tracking over SMS Lead registration by sales force Enterprise Messaging Market in India – Horizontal Use Cases

Enterprise Messaging Market in India – Horizontal Use Cases : 

CONFIDENTIAL 29 Supply Chain Automation  Automatic SMS alerts if any product stock falls below critical stock level Automatic SMS intimation for material dispatch Track movement of goods within the distribution network Reorder stock by SMS Enterprise Messaging Market in India – Horizontal Use Cases

Enterprise Messaging Market in India – Horizontal Use Cases : 

CONFIDENTIAL 30 Customer Relation Management  Broadcast information to customers about special discount offers Personalised offers through integration with purchase patterns Billing/Invoicing and payment due alert SMS Permit customers to access account information by SMS Permit customers to use SMS to track status of their orders placed by them Customer loyalty program information by SMS Complaint registration and tracking Birthday/Anniversary greetings Enterprise Messaging Market in India – Horizontal Use Cases

Enterprise Messaging Market in India – Horizontal Use Cases : 

CONFIDENTIAL 31 Management Information System  Scheduled automatic daily information capsule to management members, irrespective of their location, by SMS containing vital business performance indicators, viz. consolidated order booking (for the day, month & year), invoicing, inventory value, production figures and payment collection etc. Monitor real time sales figures or any other business performance indicator (production, invoicing etc) at any time of the day, from anywhere, by sending a SMS query Enterprise Messaging Market in India – Horizontal Use Cases

Enterprise Messaging Market in India – Horizontal Use Cases : 

CONFIDENTIAL 32 Enterprise Messaging Market in India – Horizontal Use Cases HR Communication Corporate communication Reminders to employees for appraisal review Employees can query holidays and leave status Employee Contest results Reminders for training based on training calendar of employee Sending birthday greetings to the employees Event information and registration Intimating employees about the employee referral scheme Interview scheduling Emergency and urgent alert broadcasts

Slide 33: 

33 Bluetooth - Supply Side

Bluetooth – Supply Side : 

CONFIDENTIAL 34 Bluetooth – Supply Side Several new companies in the space Prominent players with technology are TeliBrahma Nexia ValueFirst Connect etc. Resellers of above Certain companies already shutting down/shut down

Slide 35: 

35 Bluetooth – Demand Side

Bluetooth – Demand Side : 

CONFIDENTIAL 36 Bluetooth – Demand Side Agencies (GroupM, JWT etc.) Brands (Bacardi, Pepsi, Coke, ICICI Bank) Digital Signage companies (Lakshya, i-glOOH) OOH companies (Times OOH, JCDecaux) Event Management Companies (Franchise India, e.com) Enterprises (MetLife) Restaurants, Pubs etc. 2-3 Crores Industry

Slide 37: 

37 Use Cases - Bluetooth

Bluetooth – Use Cases : 

CONFIDENTIAL 38 Bluetooth – Use Cases Proximity marketing Rich media content distribution Movie Trailers M-Coupons Restaurant Menus M-Brochure Mobile application distribution (like m-banking)

Slide 40: 

Download Rich Content: Trailers, Wallpapers, Ringtones, Trivia, Games, Quizes SWITCH ON YOUR Get Jumbo Content

Bluetooth – Use Case : 

Distribute mobile applications! Bluetooth – Use Case

Bluetooth – Use Case : 

Distribute free mobile content! Movie trailers, games etc. Bluetooth – Use Case

Slide 43: 

Broadcast of m-coupons to optimize walk-ins @ Kiosk

Conclusion : 

CONFIDENTIAL 44 Conclusion Enterprise SMS – continues to be a high growth segment Some unknowns like Interconnect Some industry consolidation likely Bluetooth – no clear business model Overall a bullish trend

FOR MORE INFORMATION Please contact us at: ValueFirst Messaging Pvt. Ltd.B-17, Institutional Area Sector 32, GurgaonIndia Phone: +91 124 404 2537/8 or +91-9810704222 Fax: +91 124 404 2539 E-Mail: vish.bajaj@vfirst.com Web: www. vfirst.com : 

45 FOR MORE INFORMATION Please contact us at: ValueFirst Messaging Pvt. Ltd.B-17, Institutional Area Sector 32, GurgaonIndia Phone: +91 124 404 2537/8 or +91-9810704222 Fax: +91 124 404 2539 E-Mail: vish.bajaj@vfirst.com Web: www. vfirst.com ©2009 ValueFirst Messaging Pvt. Ltd. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system or translated into any language in any form by means without the written permission of ValueFirst Messaging Pvt. Ltd. THANK YOU