Friday, January 21, 2005

Mobile phones: The not-so-silent revolution

A cellphone rings in a Cafe Coffee Day, and a dozen hands reach out for the hip pocket. Hard to believe, but it wasn't always like this.

Just three short years ago, cellphones were still objects of desire for the young. Now, just about every 16 year old seems to have one. What happened?

Several things. Phone companies realised that latching onto the youth was the key to growing the subscriber base. Affordable prepaid cards were pushed aggressively, no thanks to competition from Reliance CDMA.

Rs 330 ($7.50) - which is the minimum monthly prepaid card- is no big deal for a working young adult. Or even the student with a part time job. But there's still a large population of teens entirely funded by parents. And Rs 7000 or $ 160 a year (taking into account airtime charges + a basic Rs 3000 handset) is money a middle class Indian householder usually thinks twice about.

So, how did a non essential expense suddenly become so much a part of life?

A conversation between parent and teen a couple of years ago would go something like this:
Teen: Mom, I need a cellphone.
Mom: I don't think so.
Teen: But Aparna has one
Mom: Aparna is a spoilt brat.
Teen: You have an excuse for everything.
Mom: Look I'll think about it, maybe next year.

Then, parent bumps into Aparna's mother at kitty party and there is a conversation about how there is 'so much peace of mind' now that beti (daughter) has a cellphone. "You know, it's so essential these days in case of an emergency. And so many times children get late from tuitions..."

Aha. There is now a perfectly rational reason to buy your kid a cellphone - without seeming like an over-indulgent parent or one who succumbed to peer pressure. It's not a luxury but a necessity.

The paradox of technology
Parents may feel a sense of security in knowing 'where their kids are', but the truth is - they have less idea than ever before. In simpler times, when you went to a friend's house for a sleepover you left your friend's telephone number behind.

In the cellphone era there's no way to tell where you really are. And when you don't want to be reached, you can always claim the signal was weak or you are out of network coverage. I'm not saying all teens use the cellphone to deceive their parents but many sure do.

Further, there is unprecedented privacy for the young person - especially girls from less liberal backgrounds. No longer can paranoid pappas vet all incoming calls and ask to know why such and such boy keeps calling.

The balance of power has shifted. Calls can be received after midnight on silent mode, with nobody the wiser for it.

It's happened before
Remember computers? Every parent thought he was investing in an important educational tool for his kid. The 'education' bit is true to the extent that merely being habituated to using a computer is an important skill in the job market today. But beyond that, were kids using the computer for essential school projects? Or was it primarily for internet surfing, email, chat, gaming - even accessing porn.

It took a combination of peer pressure ('everyone has one so my Raju should too') and rational argument (after all it is educational) which led to the computer becoming a fixture in every upper middle class household. And of course the drop in prices of computers/ availability of financing was another welcome factor.

I think this is a pattern now being seen in digicams. The average home user shoots 3-4 rolls a year which costs about Rs 1000 in film and processing charges. It will take a decade to recover the Rs 10,000 invested in the digital camera.

Yet, the purchase is usually justified by saying digicams are 'economical' to use - instead of outright admitting I-want-to-have-it-coz-its-so-cool.

Conclusion: If you're looking at the teen market - don't forget the parent. The right mix of (perceived) utility and value pricing is key to a new technology taking off in a big way.

Once the teen is a young adult with an independent income you can hope to sell the feature-rich, status-heavy stuff. But don't bet on it. There's a calculator of cost vs benefit still ticking away in the average Indian brain...

12 comments:

  1. Good to see the ever profiteering market forces and market moralities are coming with all this modernization.
    Choo Choo, here comes the consumer culture train, last stop is India. Buy Buy Buy kids, cause your life is shit otherwise.

    ReplyDelete
  2. Hi Rashmi

    Welcome to the blogging world !

    Looks like I'll be addicted to it !

    Happy new year !

    regards
    Gautam

    ReplyDelete
  3. have added you to my blogroll and have also posted about your blog here :

    http://gauteg.blogspot.com/2005/01/rashmi-starts-blogging.html

    ReplyDelete
  4. Hello Rashmi,

    I'm a subscriber to JAM, and I enjoy reading the magazine, so it was pleasant to find that you had taken up blogging. It is unfortunate that JAM is still limited in content mostly to Mumbai, but one hopes as you grow that you will establish a prescence in Delhi as well.
    The points that you have raised are relavent, and especially appealing to me as I am a great disbeliever in the Mobile Phone, and don't find it essential.

    I do, however, own an iPod, but I don't think that stereotypes me as an iGen member, or Pajero Puppy, or the like, just someone who enjoys his music.
    Anyhow, keep posting, I'll probably link you to my blog, at www.bhavya.blogspot.com

    ReplyDelete
  5. That's an interesting point about targeting parents with the 'utility' value of technology in order to sell it, but being a mom (that too of two daughters in DPS RKPuram!!), I'd rather see more people opening their eyes to its associated pitfalls!!!

    ReplyDelete
  6. Teens into mobiles. I can see my near-seven-year-old daughter asking for one before she turns 10. And there'll be a helluva long way to go before she starts earning. :-( Guess I should start saving now to pay her mobile bills.

    ReplyDelete
  7. Really, whirlwings?
    I'm a dipsite from RKP myself, cool that DPS moms are blogging too :P

    Though I must admit I'd be worried to death if my mother took to blogging.

    ReplyDelete
  8. Hi Rashmi,
    Indeed a very nice post ,,, there is a slim chance you will read this ....

    well the "implosion" of mobile phones sparks a war between privacy and connectivity ... Do not know which is the cause and which the effect

    however it also empowers the users to outright circumvent or even pester other's privacy ....

    Say a heart-broken kid who just borke up with his beau yesterday ,, he could go on troubling the ex whenever he wants .. till the service provider changes ......

    anyways great post

    ReplyDelete
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