Docomo Model For Reliance Infocomm

[Arun 795]

The Telegraph , Calcutta, May 16

Reliance Infocomm is looking at emulating the success of Japanese mobile operator NTT DoCoMo with its suite of data applications through R-World. Data applications are expected to contribute 25 per cent of the company’s revenue from mobile services within the next few years.

DoCoMo has over 40 million paying subscribers for its mobile internet access system. Reliance, which is presently offering its services free of cost, has over 6 million subscribers who download one billion pages of information every month.

“In Japan, of the $77 average rate per user (ARPU) for DoCoMo, data contributes $16, while in Korea the usage is $10 for an ARPU of $70,” says Mahesh Prasad, president (applications and solutions group). “Vodafone on the other hand gets $6 for data on an ARPU of $45.”

Prasad, however, says that they have also closely followed the US model where data applications have failed miserably, mainly due to the high PC penetration. Reliance expects the low PC penetration in India to contribute to the success of data applications.

“A number of applications will be offered through R-World,” said Prasad. “We are in the final stages of testing the reservations of railway and airline tickets through our phones.”

Reliance has already linked its network to the IRCTC system and expects to commence the service in the first week of June. The telecom major has also tied up with Jet Airways and is into talks with other airlines to provide the facility.

The company has lined up a cohesive strategy and plans to introduce over 100 applications and services, including games, over the next few months.

“The biggest advantage lies in the ability to conduct mobile commerce transactions through R-World,” Prasad added.