The
Latin communitas, for common, is the origin of both communicate
and community. That little etymological nugget seems an apt beginning
for this essay: communities, after all, could hold the key to the
media and communications business in the future. That's right, you've
heard this before, from either Bo Peabody who started Tripod, or
from the legion of dotcommers who thought the community the finest
form of media, and, in a prestidigitatorial sleight-of-words, the
purest medium of communication (anyone here heard of word-of-mouth?).
They were right but, alas, they were before their time.
When TELCO execs speak of the network effect
that will increase traffic-every incremental connection increases
the flow of traffic in a network by a factor greater than one (you
get a phone and call three of your friends; they call you back the
next day)-they are, in effect, referring indirectly to the community
effect. Japan's i-Mode, even the SMS revolution in urban India,
are manifestations of the same effect. Communities will lie at the
core of all human behaviour: how we share ideas; what we read or
see on the tube; and where we shop and what we buy. Technology will
allow media and communication companies (aren't they the same?)
deliver high quality content in any form: print, electronic, multimedia,
and through a variety of channels. Much of the content will be customised.
Magazines will be able to offer multiple versions to suit different
customer communities (or segments). Indeed, there's a story, probably
apocryphal, doing the rounds of the Indian tech circuit of how Sports
Illustrated is wired enough to publish 128 different versions of
the same issue with just a marginal increase in cost. If that story
is true, it shows the way of the future. If it isn't, don't worry,
we'll get there soon.
So, what will communities mean for traditional
media and communication businesses. Service providers-internet,
cable, and telephony-will merge. And the most innovative among them
will build low-cost business models that will enable them sell to
the rural middle class, even the poor. The content business will
see consolidation and vernacularisation as newspapers, magazines,
and television channels mature into entities that mirror social
reality as it exists. Already, the most watched channels in any
segment, entertainment, movies, and news, are Hindi-language ones.
And regional language television channels (Hindi, being the national
language is excluded) account for 30 per cent of total television
advertising revenues-a figure that could move up to 45 per cent
by 2005.
Other predictions: the internet will eventually
become everything it promised to be a few years back and by end-2005,
India will boast 61 million netizens; the higher economic strata
will abandon cable for DTH (Direct-To-Home) technologies by 2005
(if regulation paves the way, that is); Doordarshan will probably
not attract any advertisements that year although it will be the
only channel in close to 50 million rural homes; radio, especially
that of the satellite variety may make a comeback; and the government,
spurred by the realisation that television is more of an opinion
shaper than print, will probably allow foreign direct investment
into print media.
The Indian Telecom Scene
in 2010
Numbers
constitute the easiest part of this exercise: by 2010, the number
of fixed line connections in India will swell to 170 million and
the number of cellular connections to five crore. Futurists may
like to speak of a future where subscribers will have to live with
just one number. Call that number and if they are at home, within
easy reach of a landline, that will ring; if they are on the road,
their mobile will beep; if they are at work, the call will automatically
be re-routed to their office extension; and if they are in a meeting,
the call will end up at a voice-mail service. That future may very
well be possible, but we are unlikely to see any of it in India
by 2010.
Tariffs, for all kinds of telecommunication
services, voice, and data, will continue to fall. Indeed, by 2010
the 'local call' that costs Rs 1.35 for 180 seconds now, could be
all but free. Cellular tariffs will be lower. And national and international
long-distance tariffs certainly won't be as high as they are now.
At the consumer-end of the business, companies will seek to differentiate
themselves from their competitors by focusing on branding in a very
Fast Moving Consumer Goods-sort of way. India will have thriving
domestic long-distance operators, and international long distance
operators from the private sector by 2010. However, it is difficult
to predict whether all of today's telecom players, or any of them,
will be around then.
Telecommunications is an industry that has
shown itself to be heavy on global consolidation. It is very likely
that India's largest companies be taken over by Europe's largest
or America's largest telecom player. It is equally likely that big
Indian TELCOs, like the BPL-Birla-Tata-at&t combine, Bharti
Enterprises, and Reliance Infocom continue to thrive.
-Abir Pal
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