The country’s second largest mobile service provider, Reliance Communications (RComm), is said to be in talks with Microsoft for a strategic tie-up. Under the agreement, Microsoft will provide Windows Mobile Solution including push email support, chat, photo-sharing, content back-up and other applications on RComm’s GSM networks.
A source close to the development said that RComm is betting big on this tie-up and is expecting it to generate nearly 90% of its targeted smart phone business volumes. The source added that RComm is targeting a high data ARPU generation in the range of over Rs 1,750 through this initiative and is expecting an estimated revenue of over Rs 1,050 crore annually through it.
When contacted, a RComm spokesperson confirmed the discussions with Microsoft and said, “Our current talks with Microsoft is part of our overall strategy to effectively participate in the broader GSM ecosystem by accessing wider range of handsets across all brands which a customer wants to buy.”
Currently, RComm offers smart-phone solutions through Blackberry devices. Following its tie-up with Microsoft, the firm will be able to address a larger customer base. Microsoft’s Windows Mobile Solution is expected to contribute nearly 10% to Reliance’s overall GSM post-paid subscriber annual net additions. As per IDC estimates, around 10.5 million units of smart phones shipped in India during the past three calendar years (2006, 2007 and 2008). This is about 1.5% of the base at 415 million. Microsoft Windows-based smart phones have a market share of about 10%.
Naveen Mishra, lead analyst, mobile phones, IDC India, said, “A tie-up between an operating systems provider and mobile service provider always comes out to be with discounts and thus becomes attractive for the end consumer.”
This also gives a clear indication that RComm, going ahead, will need to tie up with handset manufacturers like Nokia and HTC that dominate the GSM smart phone sales. In a recent development, Microsoft and Nokia joined hands to develop Microsoft Office, business communications, collaboration and device management software for Nokia’s Symbian phones. They said that the agreement was designed to challenge (research in motion) RIM. This is also expected to bring opportunities for Indian service providers where data market is still coming up.
Windows Mobile Solution is spread across over 140 devices in the global marketplace available from over 160 mobile operators. Windows Mobile brings new features and tools to smart phones while still maintaining unrivaled flexibility, productivity and customisation.
This makes smart phones more powerful that resembles the personal computer interface, but whose interface is designed to fit neatly on a mobile phone. New features in Windows Mobile include support for HTML e-mail, increased functionality within Microsoft Office Outlook Mobile and Office Mobile programs, and improved security and device management for IT managers.