Change has indeed been the hallmark of the past millenium. Technology being
the prime driver, this change has manifested itself in every walk of life. Just
as the companies had started to get their balance in the fast changing world of
Internet and e-business–wireless technology promises to be another wave of
dramatic change. "Mobile commerce" or "m-commerce" or
"wireless commerce"–as this phenomenon is being termed, has already
started changing the rules of the game on the Indian business front. An
integration of mobile communication technology with electronic and wireless
commerce offers significant business advantages and opportunities beyond
e-business. But then with many e-business ventures unable to live up to
consumers’ expectation, can this wave become India’s new economy tsunami? In
other words, has India matured to embrace and benefit from this upcoming
technology? Global projections are astonishing with Strategy Analytics
predicting the total revenue from m-commerce transactions to reach $200 bn by
2005. Statistical predictions in the Indian context too seem to be optimistic.
Remarkable cellular phone penetration (the most widely adopted wireless
information device), and the increasing Internet subscriber base in India has
definitely set a conducive ground for wireless commerce revolution.
"Connectivity sans wire" is the basic requirement for wireless
commerce to take off. And as India gears up for the m-com revolution, a new wave
of wireless products and services have swept the market. Today Indian consumers
have a host of options available and thus can choose a mobile device that suits
his/her budget and lifestyle. Further, cell phone manufacturers, service
providers and software/ network providers have started coming together to let
the Indian consumers get a feel of the m-commerce phenomena. Indian cellular
players are continuously striving to delight customers by increasing their
coverage and introducing value-added services. Cellular infrastructure rollout
is faster than fixed line and it is estimated that the cellular subscriber base
will surpass that of the fixed line by 2008. In fact the growth of cellular
infrastructure in India is fast becoming an index of the development of states.
Apart from the metros, states like Maharashtra, Gujarat, and Andhra Pradesh are
getting extensive coverage in every district and town. However, due to the
growing competition, the cellular companies have shifted their focus from
coverage to consolidation, emphasizing more on innovative services and prices.
While 3G and its related services are some time away, Indian operators have
already started rolling out the midway 2.5G GPRS services, that provides a
glimpse of the potential of 3G. That is ample evidence to prove a wireless
revolution is round the corner or already flickering but is wireless commerce
equally inevitable? Using a wireless device for actual/real commerce is still in
its infancy worldwide. Although early winning m-commerce applications like
mobile messaging, ticketing, stock trading, banking have become widespread in
developed countries it seems to be gaining grounds in Indian market as well.
Banks are tying up with cellular service providers to provide a full range of
mobile banking facilities to its customers. HDFC bank is the first Indian bank
to offer mobile banking services followed by others like ICICI and Global Trust.
Web portals are increasingly becoming WAP enabled in order to exploit the vast
opportunity that e-commerce denied them due to its restricted accessibility.
So one can assume that the ground is conducive for a quantum leap. But
corporate India, aware of the ebb of the dotcom tide has lost its zeal of
accepting any new technology. Companies are cautiously looking forward to a
clear revenue model for business transactions over mobile devices. Apart from
the general m-commerce barriers like the lack of a consistent wireless standard,
security concerns, and device limitations, the other infrastructural hassles
specific to the Indian economy seem to be giving way, thanks to the telecom
sector boom. But then, smooth connectivity and speedy data access while on the
move, have yet to be effective enough to let the consumers have the real
"anytime, anywhere…" experience.
Prof SM Ozair and Saboohi Nasim The authors are faculty members in the MBA
department at Aligarh Muslim University. They can be contacted at mail@dqindia.com