DIGITIZING INDIA : Changing the Face of connected Living

  • Updated: Jun 23, 2015 16:36 IST

Emerging technology trends are transforming every industry globally. One of the most talked about technology trends today is the Internet of Everything (IoE). According to Cisco, by 2020 an estimated 50 billion devices will be connected. Be it driving, communicating with people, working in an all cloud environment or being able to access work from any device, the IoE will disrupt and change conventional practices.


Sizing the opportunity

According to Cisco, the IoE value at stake is expected to reach $19 trillion over the next decade. The value at stake for service providers in the IoE world will be $1.6 trillion globally by 2022. According to Cisco figures, the IoE is estimated to create business value of up to $511 billion over the next decade in India. This includes $394.4 billion in the private sector and $116.2 billion in the public sector. With the increase in Machine-to-Machine (M2M), Machine-to-Person (M2P) and Person-to-Person (P2P) connections and 69% of global population becoming mobile users by 2019, opportunities for SPs are huge within the IoE economy.

By building upon existing services portfolio, taping the value of data, entering new markets and driving out costs, service providers can gain business success.


Emerging trends

Cisco Visual Networking Index Global Mobile Data Traffic Forecast (Cisco VNI) for 2014 to 2019 indicates there will be 5.3 billion mobile users and 11.5 billion mobile-ready devices, including 8.3 billion personal mobile devices and 3.2 billion M2M connections by 2019. The Cisco VNI forecast further suggests that India will have 896 million more mobile users and 1200 million more mobile connections by 2019. Video will account for 66 percent of mobile data traffic by the year 2019, with 89 percent of mobile data traffic being ‘smart’ traffic.

According to EMarketer, the world will have 2 billion smartphone users by 2016. India will be a catalyst for this growth, overtaking US to become the world’s second largest smartphone market (after China) with more than 200 million users.

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With 10 billion mobile network connections by 2018, 90 percent of data from connected devices hosted on a service provider platform over the next five years, massive networks and infrastructure will become a necessity for data and information transfer. This means the market for stakeholders, especially for global service providers (GSPs) is huge.

With the government of India keen on involving private players in key areas such as National Optic Fibre Network (NOFN), service providers are in a unique position to leverage the digitization opportunity. Working closely with the government on initiatives like the Smart Cities program through public-private-partnership (PPP) is another opportunity to tap into.

By partnering with vendors like Cisco, service providers can become enablers of the IoE and capitalize on the above government opportunities. Solutions from Cisco can help reduce the complexity and cost of operating, deploying, and scaling new service delivery platforms across networks Such solutions provides standard-based interoperability, fewer points of configuration and common policy management and enforcement.

Within the IoE world, three critical factors will determine the extent to which service providers can gain success:

Transform the experience: Deliver new experiences that add value to consumers.

Transform the business: Create new business models and revenue streams that allow service providers to bring innovative services to market at a faster pace.

Transform the infrastructure: Choosing an open architecture can create a platform of possibilities that will help service providers reduce operating expenses and increase revenues.

Service providers looking to succeed in the IoE economy will have to go beyond re-engineering their networks. To take advantage of the IoE opportunity, they have to be open to changing their services delivery models and transform the way of doing business.

CASE STUDY: Tailoring Services to Accelerate Growth

By 2019, video data transfer will drive 72 percent of global Mobile Traffic, up from 55 percent in 2014, as indicated by Cisco VNI forecast. As the demand for online video increases, service providers are responding by personalizing experiences and providing video services that are in line with new consumer expectations.

To help expand market for video data consumption and create strong pipeline of demand for mobile data, Airtel partnered with Vuclip, a provider of mobile video streaming solutions, to enable the mobile video functionality of its popular ‘One Rupee’ service.


Launched in April 2013 as a mobile video download service, the ‘One Rupee’ service offers consumers affordable videos across eight different genres (movies, comedy, music, sporting events clips, etc.). No fixed time length is set for videos, but most are around three minutes.

This service innovation created by Airtel offers a catalogue that includes over 300,000 songs available in multiple languages, videos, games, and photos. Accessible by more than 5500 devices, it provides news updates from over 60 newspapers in 11 regional languages.

According to Airtel, over 10 million users subscribed to the ‘One Rupee’ video service in the first five months of initiation. In the September 2013, Airtel announced an ARPU boost of INR15 (US$0.024) attributable in large part to increased data consumption.

Source: Cisco

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