India Mobile 2010Mobile Phone Users in India and their Mobile Usage Behavior and

Preferences

Study Overview Most recent survey-based estimates of ‘active’ mobile phone

subscribers and subscriptions across telecom circles in India

Estimates based on a very large land survey of over 259,341 individuals spread across all the mainland states & union territories (covering all the 23 telecom circles) of the country. Survey conducted in Apr–May 2010 among 37,024 households in 100 cities and 20,396 households in 1,040 villages. Estimates cover both ‘multiple SIM’ mobile users as well as those accessing ‘internet’ on their mobile phones

Most ‘comprehensive’ profiling of both urban and rural Indian mobile users – in their demographics, psychographics and key mobile usage dynamics*

A deeper profiling of the Indian mobile users, their consumption lifestyle and their mobile usage - including details about their location, socio-economic status, household and financial assets ownerships, psychographic profile, day-to-day lifestyle habits & preferences, leisure, holiday and entertainment preferences, personal consumption and brand preferences, media usage and their mobile handset and service usage patterns and preferences* Demographic profiling and individual level SIM and handset ownership findings are based on ‘all mobile using individuals’ living in the surveyed

households (259,341). Mobile usage details, psychographics and consumption lifestyle profiling is based on only the ‘mobile using respondent member’ of these households (57,420).

Methodology Overview

* For a detailed understanding of the methodology of the study, please refer to the ‘Methodology’ section of the dataset

A large-scale land survey was conducted to profile and estimate the Indian mobile users. The survey covered ‘towns’ and ‘villages’ of all population strata in all the mainland states and union territories in India (covering all the key, and 69 of the total 77 regions in India as classified by NSSO) – all 23 telecom circles were covered extensively

Though the selection of towns and villages was ‘purposive’, the sampling within the towns was done on ‘2-stage random’ basis (firstly a random selection of polling booths, and then a

random selection of households from the electoral list within each of these randomly selected polling booths); within villages sampling was done on ‘systematic random’ basis (selection of every nth house in the village)

To estimate the mobile user-ship correctly and to make the findings representative of all mobile users in India (and not just of those surveyed), telecom circle-wise, urban district/village class and SEC combination level ‘representation weights’ as derived from authentic ‘Govt. of India’ base-level population statistics (NSSO/Census) were applied to the survey data

Methodology Addendum

* For a detailed understanding of the methodology of the study, please refer to the ‘Methodology’ section of the dataset

In 2009, we had taken a ‘land survey-cum-online survey’ combination methodology. We had used the ‘land (face-to-face) survey’ data for size estimation and basic demographic profiling of all the mobile users in India (urban as well as rural), but used the data from an ‘online survey’ for in-depth profiling of psychographics and mobile usage behavior of only ‘urban’ mobile phone users in India

In 2010, we decided to profile and capture mobile usage behavior of all mobile users, including the ‘rural’ mobile users.

To be able to do so, and to ensure ‘consistency’ in our reported data of urban and rural mobile users, we decided to conduct only a ‘land survey’ this year and collected all the required information within this land survey itself – size estimation, demographic, psychographic and personal consumption lifestyle profiling of mobile users, as well as reporting of their mobile usage behavior and preferences. The decision to do only a ‘land’ survey this year was also prompted by an inadvertent ‘upper income’ skew we found in our online survey based data on the mobile usage behavior of urban Indians

Due to this ‘revision’ in survey methodology we are unable to ‘compare’ and ‘trend’ this year’s reported data with that of the last year’s one. It was a difficult trade-off, but eventually we decided to go for a more ‘comprehensive’ and ‘consistent’ coverage and profiling of both urban and rural mobile users this year and decided to sacrifice the possibility of ‘comparing’ and ‘trending’ the changes over last year. We do propose to start reporting the ‘changes’ and ‘trends’ from the next year

We believe that as a result of the enhancements and refinements made in this year’s survey methodology, we have got a highly robust estimation of the ‘active’ mobile user-ship in India and an even better representation of various types of mobile users both in urban as well as rural India, more so compared to our own India Mobile study last year

Comparability with TRAI Data

* For a detailed understanding of the methodology of the study, please refer to the ‘Methodology’ section of the dataset

There is limited comparability between Juxt India Mobile Study data and Telecom Regulatory Authority of India (TRAI) data, and for the following reasons:

Juxt data is based on ‘primary’ consumer survey while TRAI data is ‘secondary’ in source While Juxt survey measures and reports both the mobile users (subscribers) and mobile connections

(subscriptions), TRAI data reports only the mobile connections (which it mistakenly calls ‘subscribers’). In Juxt data there is a direct linkage between ‘number of active subscribers’, ‘number of active subscriptions’ and ‘number of active SIMs per subscriber’. Unless the same linkages are available as clearly and as comprehensively in TRAI data, a direct comparison is neither advisable nor appropriate

Juxt measures only those mobile connections (SIMs) which are ‘actively’ in use at the time of the survey, not counting the ‘passive’ SIMs that may still be lying with subscribers ‘un-surrendered’ but not being used actively. TRAI reports all ‘un-surrendered’ mobile connections (SIMs) in circulation as reported by the mobile operators, which may be ‘actively’ in use or lying ‘passive’ (in use sporadically, rarely or not in use at all)

Comparability with TRAI Data

* For a detailed understanding of the methodology of the study, please refer to the ‘Methodology’ section of the dataset

In Juxt data the urban-rural split of subscribers and subscriptions is reported form a ‘physical’ location of households at the ‘town’ and ‘village’ level, and the list of towns and villages are taken from ‘Census’ listing. There is little clarity on how the urban-rural split is recorded and reported by operators (and TRAI) and whether all SIMs in use in rural areas are recorded as ‘rural’ (as many such connections may actually be getting ‘bought’ in the urban areas). Further, according to new reports most operators are yet to ‘authenticate’ the true identity and location of a good chunk of their subscriber base

A more pragmatic way of looking at the two data would be to use them in conjunction but separately

Take TRAI numbers as representing the ‘overall universe’ of all mobile connections floating currently in India and take Juxt numbers as representing only those connections within that universe that are ‘actively’ in use

The advantage of taking such an approach would be to take the more ‘authentic’ secondary data on overall connections and their actual usage details as reported in TRAI data and then layer it with the more ‘comprehensive’ active-subscription linked ‘subscriber’ level data from Juxt to profile these users in their demographics, psychographics, consumption lifestyle and their mobile usage behavior and preferences

Excerptsfrom the Executive Summary

If the story of internet usage in India revolves around ‘lack’ of growth and spread, the story of mobile usage in India on the contrary revolves around ‘surfeit’ of growth and spread. If all mobile subscription numbers have crossed 600 million mark as per TRAI’s latest figures, and if there are only around 355 million mobile connections being ‘actively’ used in the country, then there are a good 40% of all mobile connections which are not getting captured as ‘actively’ in use. Even if one were to give and take a few million connections from the two figures, the question of at least ‘1 in 3’ mobile connection not in active use stares us point blank

The Big Picture

The huge gap between ‘penetration levels’ of mobile phones at household and individual levels is a result of the fact that almost 2/3rd of mobile using households are still ‘single mobile user’ households. There is still a large ‘play area’ available to increase the user base and ‘penetration’ of mobile phones than to play mainly the game of ‘multiple connections’ and increasing mainly the ‘tele-density’. For this to happen, the spotlight must shift and focus on the ‘user’, and not on the ‘connection’

The Big Picture Even in the urban areas, ‘housewives’ and ‘students’ form the ‘second’ and ‘third’ biggest chunk

of mobile users (both segments counting for more mobile users than all the corporate employees, self-employed professionals and business owners put together). With over half of all mobile users coming from `6,250-40,000 MHI groups, the ‘critical mass’ of Indian mobile usage revolves around the ‘middle’ and ‘lower middle’ income groups

The ‘typical’ caricature of the Indian mobile users (if there is one at all) is largely of someone who has had education only up to school and has been educated either completely or for a large part in ‘vernacular’ languages (as only 1 in 25 urban and 1 in 100 rural mobile users have had their complete education in ‘English’)

Mobile users perceive, and also use, their mobile handset as much as an ‘entertainment device’ as a ‘communication device’. Accordingly, ‘games’, ‘music’ and ‘camera’ are the most present features on their ‘most used’ handsets. Most interestingly, their mobile handsets have also become the main device for listening to ‘music on the go’ for most of them

Topline Findings

There are 304 million mobile subscribers in India, using 355 million connections ‘actively’

Avg mobile users per household is 2.05 and avg ‘active’ mobile connections per user is 1.17

Household level penetration of mobile phones is 61% , individual level penetration is 26%. Tele-density at all India level stands at 31%, with urban tele-density way ahead at 54%

Rural India accounts for almost as many ‘active’ mobile subscribers and subscriptions as urban India – rural users show the same propensity to take up ‘multiple SIMs’ as urban users, but lower propensity to have ‘multiple mobile users’ in the household

2 out of 3 mobile using households are still ‘single mobile user households’

4 out of 5 mobile users are ‘single active mobile connection users’. The user base of active ‘multiple mobile connection users’ is around 59 million

Active Subscribers and Subscriptions*

* As of June 2010

The Geographics ‘Mumbai’ circle tops among urban areas with 10.4% urban mobile subscribers, Bihar

tops among the rural areas with 11.8% rural mobile subscribers

‘B’ circles account for the largest chunk of mobile subscribers as well as subscriptions, more so in the rural areas

Active use of ‘multiple SIMs’ is most prominent in ‘A’ circles (and has a ‘mass’ base rather than an ‘elite’ one)

Gujarat users, apart from MP, Maharashtra and Karnataka ones, show higher propensity to ‘use’ active multiple SIMs

3/4th of all rural mobile subscribers stay ‘within 10 kms ‘distance from the nearest town – indicating a fairly concentrated penetration of mobile users in the rural areas

Mobile Service Usage On an average Indian mobile users claim to talk 23 minutes daily. Rural users are

only marginally ‘lighter’ talkers

They claim to spend on an ‘average’ `240 monthly on their most used connection. Rural users claim to spend about 20% less than the urban users

‘Outgoing STD’, ‘call waiting’ and ‘domestic roaming’ are the most subscribed services by both urban and rural users

2/3rd mobile users claim they ‘will not switch’ operators even if the number becomes ‘portable’

Only 1 in 25 mobile users (11.6 million) surf internet on their mobile phones currently. 9 out of 10 of them are ‘dual device users’ (accessing internet on both mobile and PC)

Mobile Service Brands

Airtel is the biggest operator overall with 27.7% share of all ‘active’ subscribers base, and 28.0% share of all ‘active’ subscriptions. Vodafone follows next, with Reliance being a close 3rd

Airtel also has the highest ‘subscription-subscriber ratio’ and shows the highest ‘propensity’ to be a user’s next ‘active’ multiple mobile connection. BSNL follows thereafter

Among only GSM players Airtel stays at the top with 34.4% and 34.8% share respectively

Among only CDMA players Reliance Comm tops with 55.9% and 56.0% share respectively. It is followed by Tata Teleservices and Tata DoCoMo

On ‘most used’ connection basis, Airtel tops. Reliance comes up as the joint 2nd with Vodafone. Operators who’s share fall somewhat at ‘most used’ connection level are Idea, Uninor and Spice

Overall (%)

Mobile Service Providers

Active Mobile

Subscribers (%)

Active Mobile

Subscriptions(%)

Airtel 27.7% 28.0%Vodafone 15.6% 15.3%Reliance 15.1% 15.0%IDEA 13.1% 13.0%BSNL 10.6% 10.7%Tata Teleservices 7.7% 7.5%Aircel 6.9% 6.8%Loop Mobile 0.6% 0.6%

Mobile Service Providers

Active Mobile

Subscribers (%)

Active Mobile

Subscriptions(%)

Sistema Shyam 0.4% 0.4%Uninor 0.4% 0.4%MTNL 0.4% 0.4%Spice 0.2% 0.2%HFCL 0.1% 0.1%Others 0.3% 0.3%Non-operating brands claimed 0.9% 1.3%

Total 100% 100%

Service Provider– ‘Active’ Multiple Connections

1.06

1.05

Mobile Handset Usage

There are 0.48 million more mobile handsets than the 355 million ‘active’ mobile connections

‘Single’ active mobile handset users predominate in both urban and rural areas at 85%

Half of all mobile handsets ‘in use’ are claimed to have been bought in `1,500 – 3,000 price range

Compared to rural users, urban users show a lower relative incidence of buying a handset below `1,500 and a higher relative incidence of buying one costing over `3,000

Mobile handsets are as much ‘entertainment device’ as ‘communication device’ for most mobile users. Mobile handsets have also become the main device for listening to ‘music on the go’ for most of them, but a device for ‘going online’ for only a very few of them as yet

Almost 2/3rd of all ‘active’ handsets are Nokia (on both ‘multiple usage’ basis as well as ‘most

used’ basis). LG follows as a distant second at 10%

Samsung, Sony Ericsson and Micromax make up the rest of the top 5 list

Nokia appears to be used more in ‘urban’ areas than in rural areas, while Samsung, Micromax and Spice appear to be used relatively more in the rural areas than in the urban areas

Maxx Mobile shows the highest ‘propensity’ to be a mobile user’s next ‘multiple handset’. Among bigger players, Samsung shows the highest propensity, followed by LG and then Nokia

Mobile Handset Brands

Handset Brands – Multiple Handsets

Mobile Handset Brands

% of Total ‘Active’ Mobile Handsets

All India Urban Rural

Nokia 62.2% 65.2% 59.1%LG 10.2% 10.3% 10.0%Samsung 9.2% 7.7% 10.7%Sony Ericsson 3.6% 3.2% 4.0%Micromax 1.6% 1.0% 2.3%Motorola 1.6% 1.8% 1.3%Spice 1.5% 1.2% 1.8%Haier 0.9% 1.1% 0.6%Maxx Mobile 0.7% 0.5% 0.8%Other Brands 1.7% 1.9% 1.9%Local/Chinese 4.0% 3.3% 4.6%Don't Know/Unspecified 4.8% 5.1% 4.5%

Demographic Profile The ‘25-35 years’ forms the ‘single’ largest age group among mobile users, though usage

of mobile phone per se cuts across all age groups in both urban and rural areas

‘Housewives’ form the second biggest occupational group of mobile users in the urban areas (more than all the corporate/self employees/business owners put together). Interestingly, usage among ‘children’ in urban areas is almost as high as among ‘teenagers’

2/3rd of all mobile users are educated only up to school. And 2/3rd are educated completely in ‘vernacular’ languages (only 4% urban and 1% rural mobile users have had their complete education in ‘English’)

For all India, SEC ‘R2’ forms the biggest chunk of active mobile users, followed by SEC ‘C’ and ‘B’ (makes mobile phones a truly ‘middle’ class product in India)

The ‘critical mass’ of Indian mobile usage revolves around the ‘middle’ and ‘lower middle’ income groups (58% of all mobile users come from the `6,250-40,000 MHI groups)

‘Money’ is the biggest motivation driving lives of 3 out of 4 mobile users, whether urban or rural

Yet only a few of them see ‘money’ as a status symbol (probably money is more of a ‘necessity’ for living a good modern day lifestyle for most of them rather than a ‘social status enhancer’)

‘Cinema’ and ‘listening to music’ are their biggest hobbies

Interestingly, 5 out of the top 10 ‘most identified celebrities’ among mobile users are politicians

‘Watching TV’ is their biggest indoor entertainment, followed by watching ‘movie CDs’. ‘Chatting on phone’ is only a marginal indoor activity

Among popular outdoor activities, ‘watching movies in cinema hall’ is relatively more popular in urban areas, and ‘visiting neighbors’ in the rural areas

Psychographic Profile

Consumption & Media Orientation

Most of them are ‘need driven’ up-graders at their core (only 1 in 5 are ‘lifestyle up-graders’ by inclination)

4 out of 5 mobile users are essentially ‘budget’ buyers. However, while 2 out of 3 give high importance to ‘price’, almost a similar number also gives high importance to ‘brand image’

Over half of them have ‘never responded’ to any ‘response triggering’ marketing stimulus (seems they do not make a very good ‘direct marketing audience’ per se)

Only a minuscule 5% ‘urban’ mobile users drive a car, only a little over 1% have a credit card individually, and only 1 in 12 takes holidays/vacations (essentially domestic holidays/vacations)

Mobile users watch ‘TV’ the most among all media, though half of them also read ‘newspapers’. However, the mobile users who use ‘internet’ use it the most ‘heavily’ of all mediums

Report Details

• The India Mobile 2010 study findings are available as query-based online datasets with findings presented as tables/graphs/charts

• There are two overall level datasets:

– India Mobile Service - with findings presented on the base of ‘all mobile service users’ and data displayed by telecom circle types (Metro, A, B and C)

– India Mobile Handset - with findings presented on the base of ‘all mobile handset owners’ and data displayed by city types (Metros, Tier 2, Tier 3, Tier 4)

• In addition, there are individual telecom circle-wise datasets

Reporting

Note: Reporting by any telecom circle or brand in the supplement dataset is subject to collection of sufficient sample responses in the survey

Overall Mobile UserLevel Dataset

Supplementary Level Datasets

Pricing – Mobile Service Datasets*

India Mobile ServiceRs. 250,000

(data at all India, urban, rural and ‘circle type’ level only)

* 10.3% service tax extra

Telecom Circle-wise Datasets

Rs. 100,000 per telecom circle

(data at the ‘individual telecom circle’ level only)

* Key Findings PowerPoint Report for any dataset (only on order) – Rs. 50,000 per dataset

Single Datasets

Combo Datasets

+ Up to 5 telecom circle-wise datasets

6 - 12 telecom circle-wise datasets

All telecom circle-wise datasets

++

Rs. 500,000

Rs. 700,000

Rs. 900,000

India Mobile Service(data at all India, urban, rural,

circle type, city type and village type level)

Pricing – Mobile Handset Datasets*

Overall Mobile UserLevel Dataset

Supplementary Level Datasets

India Mobile HandsetRs. 250,000

(data at all India, urban, rural and ‘city type’ level only)

* 10.3% service tax extra

Telecom Circle-wise Datasets

Rs. 100,000 per telecom circle

(data at the ‘individual telecom circle’ level only)

* Key Findings PowerPoint Report for any dataset (only on order) – Rs. 50,000 per dataset

Single Datasets

Combo Datasets

+ Up to 5 telecom circle-wise datasets

6 - 12 telecom circle-wise datasets

All telecom circle-wise datasets

++

Rs. 500,000

Rs. 700,000

Rs. 900,000

India Mobile Handset(data at all India, urban, rural,

circle type, city type and village type level)

• Payment Terms : 50% advance, 50% after delivery of all datasets/reports

• Delivery Timeline : Overall Level Datasets (India Mobile Service / India Mobile Handset)

Week of 2nd August 2010

: Supplementary Level Datasets (telecom circle wise)

2 days from order thereafter from date of order

: PowerPoint Report

1 week per dataset report thereafter from date of order

• Reporting Format : Query access based online dataset

Payment Terms & Delivery

India Mobile 2010(Information Coverage)

Size Estimates of Mobile Users in India(All India, Urban/Rural, By Circles, By Operators, By Connection Tech, By Connection plan)

• Total mobile phone using households, No. of mobile phones users per household, Total no. of connections (SIMs) and handsets in the household

• Total mobile phone using individuals, No. of mobile phones per individual (SIMs, Handsets), Cumulative base of active mobile phone subscriptions (SIMs) and handsets, SIMs and handsets bought in last 6 months, SIMs and handsets likely to buy in next 6 months

Geographics of Mobile Users• Region, State, Urban/Rural area, City Type/Village Type, Top 25 individual urban districts

Mobile Usage Habits• Connection Usage: No. of active SIMs, Service providers of all SIMs, Type of connection technology, Type of connection plan,

Average minutes talked daily, Monthly bill, Whether will switch connection if number portability becomes operationalMost used SIM, Service Provider of most used SIM, Services subscribed to on this most used connectionWhether uses internet on mobile phone

• Handset Usage: No. of active handsets, Handset brand and model, Handset priceHandset for most used SIM, Handset brand and model of most used SIM, Features present on this most used handsetWhether listens to music on a mobile device

Personal Demographics of Mobile Users• Gender, Age, Marital Status, Generational classification by age, Status in the household (CWE or other earning member

or dependent member of the household)• Occupation, Individual Income classification (if earning), Education, Medium of Education• Religion, Community, Caste, Mother Tongue, Preferred language of reading

Personal Psychographics of Mobile Users• Most important priorities in life currently, Current hobbies and interests, Living celebrity currently identify with the most• Favorite indoor entertainment activities, Favorite outdoor entertainment activities• Parameter that defines ‘status in the society’ for them, Desired professional qualification for self/children (as applicable)• Self perception of own physique (physical fitness and looks)

Personal Consumption Lifestyle Orientation• Personal Consumption Lifestyle classification• Level of socialization/social influence (how inclined to interact with others in spending spare time at home, outside, in

party/get-together, in solving a problem, in deciding to buy products/services) • Level of consumption Impulse (how inclined to keep abreast with lifestyle trends, buy what’s latest & trendy, frequency

of replacing things at home, frequency of shopping, enthusiasm towards shopping, whether to consume or save if income increases, whether to consume or save if income declines)

• Buying Orientation (Price-quality orientation), Attributes give weight-age to when buying, Factors give weight-age to when deciding place of buying, whether responded to a marketing/advertising stimulus in the past

India Mobile 2010(Information Coverage)

Other Personal Consumption Habits & Lifestyle• Type of vehicle driven (car, scooter, motorcycle), Whether owns a credit card, no. of credit cards owned, card types• Whether a computer user and type of computer if used at home• Whether an internet user, place from where accessing internet, whether uses internet using laptop while traveling• Whether holiday in India and frequency of taking such holidays, Whether holidays abroad and frequency of taking such holidays• Whether drink alcohol and type of alcohol consumed, whether smokes cigarette and type of cigarette smoked• Whether uses certain lifestyle products and the brands used (Jeans, Sports shoe, Deodorant, Bottled/Mineral water,

Cornflakes/Processed cereals, Packaged Fruit Juice, Eating Fast Food, Home delivery of food, Air Travel, 3Star+ hotel)

Household’s Socio-Economic Profile• Family classification by lifecycle stage, Family size• Highest occupation & education levels in the HH, Neo-SEC Classification, CWE Occupation & Education, Conventional SEC

classification• Monthly Household Income (MHI), Sources of Household Income, No. of earning members in the family, Average per capita

household income, Spending power classification, Ownership status and size (carpet area) of house living in• Asset owned in the household (House, Land, Car, Motorcycle, Scooter, Bicycle, B/W TV, Color TV, TV Connection, Fridge, Washing

Machine, Air Conditioner, Microwave, Music system, Portable music player, VCD/DVD player, Regular Camera, Digital Camera, Video Camera, Computer, Video Games, Food processor, Water purifier, Toaster/Sandwich maker, Power backup, Landline phone, Tractor, Tube well/Pump, Transistor/Radio)

• Type of asset owned in the household and brand owned for the following assets (Fridge, Water purifier, Color TV, TV Connection, Washing Machine, Car, Motorcycle, Scooter, Computer)

• Financial asset ownerships (Saving Bank Account, Fixed Deposit, RBI/Govt. Bonds, Demat Account, Medical Insurance, Accidental Insurance, House Insurance, Mutual Funds, Company Shares/Stocks, Chit Fund Deposits, Crop Insurance)

India Mobile 2010(Information Coverage)

Personal Health Profile• Whether suffers from any serious lifestyle disease and which one (Low Blood Pressure, High Blood Pressure, Diabetes,

Thyroid Problem, Arthritis, Chronic Bronchitis/Asthma, Spondylitis, Obesity, Piles), Preference for type treatment/medication for the serious lifestyle disease suffer from

• Preference for type treatment/medication and brands used for some casual lifestyle diseases when they occur (Cough & Cold, Head ache, Muscular pain, Indigestion, Acidity, Acne/Pimples, Fever, Allergy, General weakness, Toothache)

Personal Media Usage• Whether use TV, Radio, Newspaper and Internet, with frequency of usage on weekdays and weekends• Type of TV content watched and the 3 most watched TV channels for each type (Entertainment/Serials/Reality Shows,

News, Movies, Music, Business News & Info, Spiritual/Devotional, Sports, Cartoon)• Type of newspaper/magazine read and the 3 most read brands for each type (Regular Newspaper, Business Newspaper,

Regular Magazine, Business Magazine)• 3 most listened to radio channels • Dominant (most used) media

India Mobile 2010(Information Coverage)

Contact Details• Address : 3, Kehar Singh Estate, 1st Floor, Westend

Marg, Lane 2, Said-ul-Ajaib, New Delhi – 110030

• Telephone : +91-11-29535098, +91-9811256502

• Contact Person : Sanjay Tiwari

• Email : sanjay@juxtconsult.com

• Website : www.juxtconsult.com

Thank You!