How can we increase revenue in low ARPU market?

http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&gid=137157&discussionID=201939&sik=1224326366368&commentID=310731&goback=%2Ehom%23commentID_310716%2Ehom#commentID_310731
(In answer to a generic queston on Linked in about the dynamics of increasing ARPUs)

Hi Syed

In such times, when voice and text is commoditizing, the buzzword is services as all the other 5 answers here indicate. However, it is more than a ringtone, content, games etc. M Commerce/ Market Services has answers but they wont be easy in coming. 3G services is another interesting answer.(in developing countries). However in true sense 3G and other market services will be a long haul and sustained investment game. Few questions that need to be first thought through before comitting resources

1. Will operators monetize services from the start (meaning lower adoption rates) or introduce a free service first and then monetize the full monty (meaning the customer will upgrade)
2. We are talking of changing consumer behaviour- thats a long incubation
3. How do you account for loss in revenues due to churn or a competitor running a more attractive price for the same service?...
4.... hence the risks to the returns versus investments.

In a country like India, these considerations are significantly impacting the Operator decisions and willingness to commit investments required. Both these solutions do need long partnerships and incubation periods. These solutions need to be looked at from a ROI versus Investment perspective. This is a long haul but a source of competitive advantage and but obviously higher revenues (ARPUs).

My opinion on this: Models can fail, platforms will not. Models meaninging stand alone business models. To generate long term cash flows, we need to look at Platforms, for instance, mobile manufacturer - Operator - Fertiliser companies - Meterological department - Banks - Travel Agencies - Others. This downturn is a good time to forge these links. Only when you take "all under one roof" approach, will you be able to compell the consumer to dish that much extra which is going to add the whole lot more to your ARPU.

The fall of Capitalism or what?

( In response to a discussion floated in a Linked group...http://www.linkedin.com/groupAnswers)

Hi Srini
Brilliant work on the tabling the facts. But the inferences can perhaps be slightly better 1. The bankruptcy of a few Financial institutions cannot be termed as the fall of capitalism. As long as there are entrepreneurs, Capitalism will be. 2. Agree with you on wasteful expenditures that America has incurred on the trillion dollar "terror" war without much ensuing out of it but the current acount deficit. 3. Nothing substitutes the basics in financial sector. This fall in the banking system is however the fall of over optimism and over leveraging of the mortages and other banking tools without a solid base. 4. My feel is that the financial Tsunami is going to travel eastward to Asia in some direct form or indirect form. Already European banks are feeling the ground under their feet buckle to the pressures. 5. However the more eastward this Tsunami travels the lesser will be its intensity. While it has affected the whole of the American banking system, and part of the European banks, its effect eastwrd will be lesser in scale. 6. For India,liberalisation was a panacea. Ironically however, the gradual rate of oepning up of thefinancial sector has made sure the risks and exposures are not as substantial. 7. It is a good time for economies like India and China to surge ahead. 8. While getting ahead is easier, India will require some discipline to forge the pace. Wasteful rural subsidies must have to stop. Infrastructure must grow faster and we need qulaity out there. 9. For a good 40 years, India was a partly socialistic economy. However at this time, our progress and deliverance lies in judicious capitalism. 10. The Indian capitalist is a thoroughbred and i for one vet for the Indian capitalist to play a significant role in shaping the future of ths country. Which ever way you see it, Srini, we are still talking ideals of capitalism as a means of deliverance whether be India, China or the sinking US. So its not the end of Capitalism, just that it is changing grounds probably...