Telecom OTT apps create $98b consumer surplus

NEW DELHI: Over-the-top (OTT) telecom applications like WhatsApp, Google Hangouts, Snapchat, Skype and iMessage contributed to consumer benefits amounting to $98 billion-around 4.3% of India's GDP-in 2016, said a report by WIK, a Germanybased research and advisory institute for communication services, and Broadband India Forum (BIF), a policy forum working towards the proliferation of broadband services in the country.

The study also covered India-based messaging apps such as Hike, JioChat, Lookup, Flock and Nimbuzz, which have become an increasingly popular means of personal and business interaction. The report, titled 'The Economic and Societal Value of Rich Interaction Applications (RIAs) in India,' establishes that these apps play a disproportionately important role in India when compared to other Asia-Pacific (APAC) countries.

"The regulatory ecosystem in India is evolving and is focused on the ease of doing business and ease of facilitating innovation. Considering the significant impact of apps ecosystem on the country's economy, a constant dialogue between policy makers and the industry stakeholders will be critical to unlock the true potential of the internet and app ecosystem in India," said TV Ramachandran, president of BIF.

The study highlights significant social benefits created by RIA usage. Both specialized and general purpose RIAs can play an important role in education and knowledge transfer when direct face-to-face interaction is not possible.

"Our own representative survey of internet subscribers in India further confirms that RIA users typically utilize at least five out of six RIA functions. The six core functions of RIAs analyzed in our survey are: ordinary calling, video calling, texting, sending pictures, sending videos, and group chats," the report said. Overall, India's app economy is considered one of the largest in the world.