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Tuesday, November 25, 2008

WATBlog Update There are 3 new posts in "WATBlog.com - Web, Advertising and Technology Blog in India"

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There are 3 new posts in "WATBlog.com - Web, Advertising and Technology Blog in India"

Mobile Number Portability (MNP) - Why It Could Redefine Fortunes Of The VAS Players

Mobile Number Portability (MNP) a buzz word for quite sometime now and last heard that TRAI would favor the number portability implementation by June 2009.

Now DoT has taken a step further and invited bids from technology players to setup the Mobile Number Portability system in India. For those who dont know Number portability allows subscribers to retain their existing telephone numbers when they switch from one operator to another.

mobile-number-portability

If and when the system rolls out it would work something like this:

  • Subscriber contacts new operators and asks his number to be ported
  • New operator submits number port request to clearing house
  • The clearing house informs the old operator
  • In a specific time frame the old operator deactivates and the new operator activates
  • Clearing house informs all operators that the number is ported

As its clear from the above flow. The role of the clearing house is critical and hence some guidelines for bidding have been laid down for MNP Service providers who would be managing the clearing house. Simply put Existing telecom players will not be allowed to be an MNP service provider. Companies such as Telcordia, Tekelec, Nortel and Syniverse may bid for the MNP service provider licence.

How is Number Portability a Boon for VAS players?

Well once operator becomes a replaceable carrier and number portability becomes a reality two things would come under focus:

1) Service Quality of Operators

2) Value added services provided by Operators

Think about it.. If you are a football fan and can keep your number but want to download the game which is exclusively available on another operator (other than yours) then number portability would allow you to change the operator and download the same. Which means VAS could actually become a differentiating factor for telecom operators once number portability comes in. I feel this could be a bigger bet for VAS players than 3G. Also Airtel would not have the guts to block a Mytoday after this comes into play as mytoday would plainly ask subscribers to shift from airtel. I can also foresee revenue share’s changing and content gaining power over networks. Also operators would be ready to pay a premium to content players for exclusivity of VAS content. For example movie content like ringtones and downloads would have operators vying for them for exclusivity.

Costs and Time could be deterrent

Though very possible the thing that could reduce the impact of number portability for VAS players is cost of porting one’s number though there is no word yet but if transferring my number from one operator to another costs me as a subscriber then that is a deterrent. Also the other deterrent could be time as in if it take a month for the process of transfer to take place it may stop users from going in for it. Last but not the least if there is a cap on the number of times I can change my operator.

All in all I out of everyone is awaiting the MNP as my operator is Vodafone and I wish to change it! (Ofcourse dont wish to change my number ;))

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Mumbai & Delhi Rank As Largest Ecommerce Hubs - Why Ecommerce Is Key For Online Advertising Growth?

According to an Ebay census Mumbai is the top e-commerce centre in India, followed by Delhi, Hyderabad, Bangalore and Chennai. Also in terms of items sold on eBay USB drive register the maximum sales. I guess thats understandable given that USB drive ranges from 300-1000 rupees which is the ideal online transaction amount. Other popular items included value mobile handsets, MP4 players, USB MP3 players and diamonds were the other popular items.

ecommerce

The most interesting insight from the census is the fact that 33% of all the products bought are by customers in the hilly areas of the north-east, Jammu and Kashmir and Himachal Pradesh etc! Also states of Andhra Pradesh, Kerala, Maharashtra, Tamil Nadu and Karnataka are the ones from where the maximum towns engage in ecommerce.

Why is ecommerce related to Online Adverting?

Growth of ecommerce is essential for the growth of online advertising as well and this insight was stated in our first WATBlog Panel at IIT. The reason for this is because if people don’t transact online then the cost per conversion for ad campaign’s becomes even more thereby making advertisers wary of the online medium. Yes one may argue that TV also doesn’t have an immediate transaction but one only has to look at some ads which give out sms codes especially the financial institutions ones and give phone numbers one can call on thereby giving opportunity for advertising to convert in sales.

Even print ads have discounts and other freebies for immediate sale impact. Online on the other hand needs to see a rise in ecommerce as it would drive the use of the medium for advertising. What do you think?

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NewsCorp Launches .FoxNetworks.. One more to over a Dozen Ad Networks in India

Fox Interactive which is the digital arm of News Corp has launched its online ad network in India called .FoxNetworks. The company has roped in Pooja Puri who recently quit hindustan times as national director, sales.

fox networks

Ad networks are a dime a dozen (check list below) in the Indian market and a consolidation or shut down news of networks is waiting to happen given the market downturn and reluctance of advertisers to spend money. Globally .Foxnetworks serves display as well as video ads and also carries out lead generation campaigns, search marketing and affiliate marketing programmes.

According to a statement to afaqs currently .FoxNetworks would focus on lead generation campaign. Internationally.FoxNetworks has its own properties as well as other publishers in its network. NewsCorp owns online properties like Myspace and in India the entire Star bouquet including Channel V. Though its not apparent whether these properties would fall in the category for lead generation or will be associated at all with the Indian Ad Network operations.

Some of the well known and well backed ad networks

Tonictag By Ishir Digital, NetworkPlay By Webchutney, Admagnet By Interactive Avenues, Adchakra By Percept Knorigin, DGM (affiliate network) By DGM India, Komli, Ozone Media, Tyroo By SITG, Paypod, Adwinks by Ibibo, Jivox and Vdopia (Video Ad Networks), Sulekha Ad Network and AdsforIndians,

I think the tougher aspect would be attracting advertisers in this lean period without any substantial USP i.e. everybody else also seems to be offering lead generation services via ad networks. Beside for being an offering from newscorp currently .Fox Networks has nothing to write home about.

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