The Hindu Business Line : Small towns swayed by mobile entertainment

More small town folks have begun tuning into their mobiles to check out the latest Tollywood flick or Dhoni's sensational sixers. Handset makers and mobile service companies are now `ringing' in more revenues from tier II cities, thanks to the rising demand for sleek mobile models and polyphonic ringtones.

Value-added service (VAS) providers, who supply non-voice content such as SMS promotions, MMS and ringtones to entertainment companies and telecom operators, have also set sights on non-metro markets.

All non-voice services need a different server, which mobile VAS companies such as IMImobile, CellNext and Mobile365 provide. IMImobile is betting big on the rising disposable income and high turnover of mobile phones in tier-II cities.

Lower work pressure

"Unlike metros and mini metros, the travel time and work pressures are much less. The free time is often consumed with the mobile VAS," explains Mr Bibhu Kumar, Vice-President (Marketing) of IMImobile.

To reach out to these masses, IMI is providing regional content such as local songs and wallpapers of regional actors. Adds Mr Kumar, "While in the North, people download Amitabh Bachchan wallpapers, Rajnikanth and Nagarjuna wallpapers would be downloaded in the South."

The demand for regionalised content has shot up in southern States. Tollywood, Kollywood and Bhangra are among the most popular download categories. The tier II cities of Kerala, Tamil Nadu, Andhra and Karnataka are the leading markets for IMI.

"We have seen phenomenal growth in UP, Punjab, Gujarat, and to some extent, in Maharashtra," points out the company's marketing vice-president. IMI's special downloads too have surged during festivals such as Baisakhi, Pongal, Holi and even Valentine's Day. IMI also offers SMS services for the popular TV shows Indian Idol, Sa Re Ga Ma and Fame Gurukul as well as cricket scores.

Surprisingly, 65 per cent of such SMS entries are from tier II cities and revenues from these areas have grown by 60 per cent. The average customer in a tier-II city is in the 28-35 age group. Youngsters there also want to stay in sync with latest mobile technology to keep up with their urban counterparts.

New target groups

IMI is, however, diversifying its target groups. Along with other mobile entertainment players, it is targeting the "ayaah, coolie and driver" category. "While, this group might not be users of VAS today, they do represent a population that might jump onto the bandwagon tomorrow," says Mr Kumar.

IMI markets VAS through SMS and download announcements. Its TV channel partners, Star and Sahara, announce short codes for SMS-based contests. IMI has tied up with mobile operators such as Airtel, Hutch, Idea, Spice and Rainbow, Reliance and Aircel, as well as the portals Yahoo, MSN and Sify.

Mobile phone sales have soared in non-metro markets due to the emergence of high-paying IT jobs. The Cellular Operators Association of India estimates that cell phone subscription in tier II cities is growing at over 45 per cent yearly, led by cities in UP and in Karnataka. The mobile entertainment market in India is estimated at $100 million, constituting 8-10 per cent of revenues of mobile operators. IMImobile claims to control over 70 per cent of such services.

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