2. Think of India as a Microcosm of Emerging Markets PC and Internet Numbers PCs: 30 million (growing 8+ million / year) Equally split between Homes, SMBs, Large Enterprises+Govt Internet: 60 million (growing 15+ million/year) 8 million broadband (256 Kbps) connections 50% access from cybercafes Ads: Rs 700 cr (3% of media spend) Transactions: Tickets, Trades, Matrimony Mobile Numbers Red Market 100 million users (+10 mn/year) ARPU of $10 Non-Voice ARPU of $1.50 Mix of Enterprise and Youth Blue Market 300 million users (+75 mn/year) ARPU of $2 Non-Voice ARPU of $0.05 Mix of Urban and Rural SMS Use: 50-60% of base (200+ million) WAP Use: 4-5% of base (15-20 million) 2
3. The Internet-Mobile combo can open up big new Opportunities in Emerging Markets Online Education Mirror World Solve Monetisation Problem for Internet Portals Digital Services Operator Mobile Social Networking Mobile-PC Continuum 3
4. 1. Education: Rs 100 per month, One Hour daily, Learn-to-Learn How can we do it? 4
5. 2. Mirror World: A Virtual Replica of the Real World along Multiple Dimensions Start with maps Add a layer of establishments (buildings, schools, retail outlets, roads, etc.) Overlay this with the voter databases with names of people, their addresses, gender and age Add actual voting numbers Integrate socio-demographic and development data that is available from census, various government sites (and collated by independent companies) Buy contacts lists of people with information of their digital identity (email IDs, mobile numbers) Continuously update database based on user interactions, thus enhancing people profiles 5
6. 3. Interacting with our Real Social Networks (1) PUBLISH (to Web) (2) SUBSCRIBE Globally unique digital identity (3) VIEW and DISCOVERY (4) PUSH DELIVERY 6
7. 4. Solve the Monetisation Problem for Internet Portals The Internet Portals business is about three things: Reach: the raw numbers for a basic free service (on desktop and mobile web) Ads: how to monetise the free services attention via ads More: how the free user can be multi-monetised either through premium products (subscriptions) or via transactions (commerce) Internet Portals have mostly focused only on 1 and 2 Web Ad Revenue is not good enough to cover the costs or to scale operations This limits the portals capability to scale The challenge is to also think about how to build 3 7
8. 5. Digital Services Operators to create Telco-independent ecosystem 8 Diverse Services to generate Rs 50+ ARPU
29. Learnings of an Entrepreneur:I Wish I Knew Then Watching the Cashflow Keep a watch out for collections Monitor aging reports of debtors Thinking Multi-Monetisation Try out multiple different options Get quick learnings as to what works (and doesn’t) Numbers Discipline (for revenues and costs) Quarterly Reviews Ideally, with external Board Advisors 10
30. 5 Questions for Entrepreneurs Is the Market that we are in Large enough to ensure our growth? Can we ensure that the Base business continues to grow? What are the Boosters that we can add through new ideas / initiatives / recruitments to incrementally grow the current business? Are there Adjacent Markets that we can tap into? What are the Breakthroughs / disruptive innovations that we can do that can create or amplify future growth opportunities - either in the current market or adjacent markets? Think of these as 3B (Base, Boosters, Breakthroughs) + 2M (Market large, adjacent Markets) 11
