A study on the impact of mobile internet and 3G services on mobile phone users in India

A study based on the usage patterns, preferences, and awareness of mobile internet and 3G services among mobile phone users in Delhi and Bangalore

INTRODUCTION
The evolution of internet has led to the convergence of telecommunications networks and computers. People are able to communicate via e-mail, perform data transfer etc. Traditionally internet services were provided by Internet Service Providers (ISPs) using modems with data rates limited to 56.6kbps. With the need for higher speed internet services, Broadband ISPs emerged providing faster data transfer based on cable and DSL technologies. IEEE 802.11x technologies have opened a whole new era of accessing the internet wirelessly; giving the traditional users the advantage of mobility. The increasing demand for wireless package has opened a new market era in the wireless industry; the Wireless Internet Services (WIS). Mobile internet was launched in India much before the introduction of 3G services and its subscriber base was showing immense growth. With the introduction of 3G, mobile web is gaining prominence as user-friendly in nature. Indias base of 81 million mobile internet users is the worlds fourth largest, though this is composed of just 20 percent of Indias urban citizens who are connected to the internet, compared with the 60 percent in China. In India, as per the Opera and On Device survey report, 49% of people who are using the mobile Internet either never, or infrequently, accesses the Internet from a computer. Not only is it a cheaper and easier alternative, a mobile device provides the most convenient access to the internet while away from a computer. The government of India has earned a huge amount from 3G spectrum auctions. There are several operators in India offering 3G services which enhanced features over 2G like video calling, high speed internet access, live streaming, music, file sharing etc. But India is a developing country and the common man is still finding it difficult to afford the high tariff rates and the expensive 3G enabled handsets.

Hence these issues have to be sorted out if India is to see a considerable growth in the number of 3G customers. Mobile Internet 'Mobile Internet' refers to access to the Internet from a mobile device, such as a smartphone or laptop via integrated abilities or via an independent device (such as a USB modem or PCMCIA card). Though traditionally access to the internet has been through fixed-line services, it is becoming more accessible by portable and wireless devices. The introductions of smartphones and tablet PCs have accelerated the shift to mobile internet access. Both platforms provide better Internet access and browser- or application-based user web experiences than previous generations of mobile devices have done. A cell phone will connect to the Internet using the same wireless connection used to make and receive calls. The mobile phone connects to a tower in the area, and instead of then connecting directly to another phone it connects to the Internet and so can send and receive data. Certain cell phones, like Apple's iPhone, are Wi-Fi enabled that will allow the user to connect to the Internet using standard Wi-Fi services. Thus it allows users to connect to Wi-Fi in places like cafes and retail stores where they may not have a strong cell phone connection or where it is a cheaper option. 3G services 3G services are the latest in mobile communications. 3G stands for third generation, analog cellular technology being first generation and digital mobile technology being second generation technologies. The use of 3G technology permits transmission of packet switch data more efficiently and at better and increased bandwidth and can offer more advanced services than the previous generation technologies. The International Telecommunications Union (ITU) defined the third generation (3G) of mobile telephony standards IMT-2000 to

facilitate growth, increase bandwidth, and support more diverse applications. 3G technology is best suited for use in multimedia cellphones such as smartphones and features increased bandwidth and transfer rates to accommodate web-based applications and phone-based audio and video files. Compared to the previous technologies like 2G, 3G technology gives speeds ranging from 144 Kbps up to 2.4 Mbps, which is very near cable-modem speed. The amount of bandwidth needed for 3G services could be as much as 15-20 MHz, whereas for 2G services a bandwidth of 30-200 KHz is used. Hence, for 3G huge bandwidth is required. 3G allows users to browse quickly through web pages, watch on-demand video programs, download and play music, videos and 3D games, watch streaming videos and music videos and have video conferences.

RESEARCH METHODOLOGY
Objectives of the study

To study mobile phone users perception, preferences and usage pattern of mobile internet and 3G services focusing on Delhi and Bangalore.

To understand the product awareness among mobile phone users about 3G services. To understand the issues that can critically affect the growth of 3G services in India. Methodology: Type of Research:

The study is descriptive type which helps us to understand the scope of new technologies like 3G and mobile internet in Delhi and Bangalore.

Sampling Plan:

Sampling Elements: Mobile phone users, existing and potential users of mobile internet and 3G services at retail shops like Coffee shops, malls etc in Delhi and Bangalore.

Population: The survey is to be conducted in retail outlets (Like Coffee shops, Food joints, Gyms, Spas etc.), hotels in Delhi and Bangalore among the users/ non users of Mobile internet and 3G services.

Sample Size: The sample size is to be 100 mobile phone users which include users/non users of mobile internet and 3G services. Sampling Technique: Convenience and judgmental sampling are to be used. This will help in collecting data as accurate as possible in a convenient manner.

Data Collection: A questionnaire is to be used to collect data from existing and potential subscribers of Mobile Internet and 3G services, and the general public.

DATA ANALYSIS Delhi

Frequency of Mobile Internet Usage

Bangalore

Conversion to 3G

Features of 3G services that attract mobile phone users

Delhi
Ranking of Services

Bangalore

Tariff rates for 3G services are too high

Issues that can affect the growth of 3G services

FINDINGS AND RECOMMENDATIONS (This is what u sent me. Make changes wherever necessary and send me back before taking print out)
The advent of 3G services in 2008 by MTNL, BSNL followed by other private players in 2010 has brought a revolution in Indian Telecom sector in which

traditional demand based technology was replaced by simultaneous data and voice technology. The study was conducted in Bangalore and New Delhi to understand how much 3G and mobile internet has played to bring a change in India. This study was done during the internship in O-zone Networks Pvt. Ltd. Through the study it was found that mobile internet has become a necessary commodity in Bangalore and New Delhi with 31% and x% using the facility daily. The introduction of 3G showed a sharp increase in the mobile phone internet users with 38% of the users switching to 3G in Bangalore. The study found out the dissatisfaction level of these people to be higher owing to the many issues like slow speed of the 2G internet facility. The percentage of the people who became aware of the 3G services was found to be 84% in Bangalore and 33% in New Delhi. But only 46% of those who are aware are currently using 3G in Bangalore. The study revealed that the ignorance among people is affecting 3Gs growth in India even though a lot of publicity is given to promote 3G services. Among the different services offered by the 3G it was found that High speed internet, video call facility are the most preferred services whereas the ticket booking and gaming were the least preferred services. Video call is most popular among the IT professionals due to the fact that it allows face to face communication with the family & loved ones. The ban on the mobile phone by the Education Department of Bangalore had an adverse impact on the Gaming preference among the students. None of the 12 students interviewed viewed the Gaming to be attractive due to the cost of spending of Rs 49 to Rs 100 per game. The study also found out that high tariff rates of MSPs, high price of 3G handsets together with the ignorance of various 3G services other that internet and gaming are the worst challenges that need to be solved. The study recommends to come up with promotional strategies like experience stores in Bangalore and Delhi by offering the 3G experience to the walk ins. One of the problems with Indian customer is that they need to buy a new phone with

providers Logo at MRP. About 25% studied disliked the thought of having a mobile service providers logo on their personal handsets. Here another strategy like the slashed bundle plan as in US where brand new phones at a cost one-byfifth the MRP is offered to the customer. The study also recommends the MSPs to offer their own phones to the customers. Many Chinese and Indian mobile phone manufactures had shown that it is possible to make phones at low price.