The Indian mobile operators who are faced with uphill task of keeping a check on dwindling ARPUs may find mobile eCommerce as the saviour says a new research paper from Deloitte.

With competition increasing and MVAS too playing only a limited role in keeping a check on falling ARPUs, mobile eCommerce can play a significant role with availability of high bndwodth on 3G networks and increasing smartphone penetration, says Deloitte.

Additionally, the high prices paid for 3G spectrum will put more pressure on operator profitability and shareholders will demand higher profits, points out the research paper from Deloitte. Other players in mobile eCommerce ecosystem such as such as device manufacturers, retailers and payment networks will also increasingly try to take centre stage and relegate the telecom operators to a mere participant – ‘glorified pipe provider’ in the ecosystem.

According to Deloitte, mobile device based platforms like those developed by Apple, Google and payment networks like MasterCard and Visa pose a clear and present threat to mobile operators in India.

The paper calls for mobile operators to change the they look at their business and evaluate mobile eCommerce to build a sustainable advantage.

Sachin Sondhi-Leader, Strategy and Operations, Deloitte in India expresses optimism on the future of Indian telecom operators, “We believe mobile eCommerce space provides tremendous opportunities to the operators to increase revenues and drive profitability. While it is easy for telecom operators to build one side of the platform and acquire the consumers as they own the relationship, it will be challenging for them to get the merchants on the platform and consequently show value to them. The solution lies in solving ‘hard jobs’ the consumers face by monetizing data across platforms (DTH, mobile and broadband) and creating an effective ‘local search to sale capability’ for closing the sales. The operators can then, over a period of time, expand their merchant network and command a share of closed sales. Else they risk getting relegated to a peripheral player – a “glorified pipe provider”, while others create and capture value.”