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Demand for mobile chat grows among Indian consumers: KPMG survey

Demand for mobile chat grows among Indian consumers: KPMG survey

Author | exchange4media Mumbai Bureau | Saturday, Jun 06,2009 8:53 AM

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Demand for mobile chat grows among Indian consumers: KPMG survey

KPMG’s Consumers and Convergence III Survey shows that there exists a huge potential for mobile chat services, video gaming on mobile and watching live TV on mobile in India. Globally, 18 per cent of respondents were very likely to use a mobile chat service in the next 6-12 months. In India, however, the survey revealed that a much higher proportion (34 per cent) of respondents was likely to use mobile chat service, indicating a growing demand for such services. Eighty-six per cent of respondents in India, much the same as in China, indicated likelihood of watching live TV on mobile phone in the next 12 months.

KPMG surveyed over 4,000 consumers in 19 countries worldwide, in order to understand the future for the market, revealing global trends and some startling regional differences. Music, the survey reveals, is definitely a very desirable commodity and attractive to mobile phone users, as 30 per cent of respondents have purchased songs on their mobile phones in the last 12 months. More importantly perhaps, the majority of respondents – 66 per cent globally, 95 per cent in India, 86 per cent in the UK and 84 per cent in the US – were satisfied with their download experience.

KPMG’s survey further reveals that 17 per cent of mobile gaming users globally were very satisfied with the services worldwide. In India, although the user base of mobile gaming is smaller, a substantially higher proportion (63 per cent) was satisfied with the service, which reflects gaining acceptance and opportunity for mobile gaming companies as the segment moves beyond the early adopters.

Rajesh Jain, Head of Information, Communication & Entertainment at KPMG India, explained, “While the mobile additions exceed 10 million a month on one hand, ARPUs continue to drop on the other hand. Telecom players recognise that increase in VAS revenues will be an important aspect of future growth and profitability. Players in the value chain are innovating and focusing on increasing the market size for their products and services.”

Jehil Thakkar, Head of KPMG’s Media and Entertainment practice in India, said, “This survey clearly shows the great potential India has for value added services. Convergence is rapidly unlocking the value of India’s vast and growing mobile user base. Those companies that employ innovative strategies to monetise this trend are likely to benefit for a long time to come.”

KPMG’s survey reveals that there exists a huge potential for banks to grow their market with mobile phone users, as globally 53 per cent of consumers say they are comfortable with the idea of using a mobile phone for financial transactions and 54 per cent state that they are ‘at least somewhat likely’ to conduct banking through a mobile device in the next 12 months. For India, these proportions were even higher, with 64 per cent stating that they were ‘at least somewhat likely’ to conduct banking through a mobile device in the next 12 months.

The survey revealed that while a majority of users globally are not willing to receive advertisements on mobile phone in exchange for free content, in India, 80 per cent users were willing to receive advertisement for free music downloads and more than 50 per cent were willing to receive advertisement for free instant messaging and video games. This indicates that Indian mobile subscribers are more open, than most others, to ad-funded content. Further, 66 per cent of Indian users, compared with 49 per cent in China, are at least somewhat open to allowing tracking of online usage in exchange for lower costs.

Bandwidth is also highlighted as important for purchases of video clips and mobile TV. Eighty-five per cent of the respondents rated clear pricing top in the list of factors influencing their next purchase, but download speed is as high in the list of buying criteria at 84 per cent as well. In India, 93 per cent indicated clear pricing and 94 per cent indicated download speed as influencing their next purchase of video clips and mobile TV.

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