Title of Project

Study of MVAS & M-COMMERCE IN INDIA

A Thesis sub itted i! "#rti#l fulfill e!t of P$DM e-%usi!ess "ro&r#

S'%MITTED %(

M#)h#r*h#! Modi

'NDER T+E $'IDANCE O,

Prof Di-#*#r .# #th

De"#rt e!t / P$DM e-%usi!ess

PRIN0 10 N0 2E1IN$.AR INSTIT'TE O, MANA$EMENT DEVE1OPMENT & RESEARC+3 M'M%AI 4 566 678

96th M#rch :67:

Statement by the Candidate

I wish to state that the work embodied in the thesis titled Study of MVAS & M-COMMERCE in India forms my own !ontribution to the resear!h work !arried out under the "uidan!e of #rof $%i&akar 'amath at the #rin$ ( ) *elin"kar Institute of Mana"ement %e&elo+ment and Resear!h ,*eS!hool-$ .his work has not been submitted +re&iously to *eS!hool or to any other Institution or +a+er !ontest either in full or +art$ *hene&er referen!e has been made to +re&ious works of others/ it has been !learly indi!ated as su!h and in!luded in the 0iblio"ra+hy$

11111111111111111111 Si"nature of the Candidate )ame 2 Ma3harkhan Modi

Certified by 111111111111111111 Si"nature of the 4uide )ame 2 #rof$ %i&akar 'amath

A!knowled"ements
I would like to e5tend my sin!ere thanks to the +eo+le who +layed a instrumental role in hel+in" me durin" my !ourse of the +ro6e!t$ 7irst of all I would like to thank Welingkar Institute of Management Development & Research for "i&in" me an o++ortunity to !arry out this +ro6e!t and deri&e a "reat industrial learnin" from it$ I would like to e5tend my sin!ere thanks to Prof0 Di-#*#r .# #th for "uidin" me from time to time and "i&in" me !ontinuous su++ort in e&ery +ossible manner$ #rof$ %i&akar 'amath had been a &ery "ood mentor and would like to thank him for bein" a key +erson in hel+in" me to !om+lete my +ro6e!t and +ro&idin" me with all the essential information needed to !om+lete the +ro6e!t$

I would also like to thank our +ro"ram %ean Prof0 Pr#dee" Pe!dse Sir for +ro&idin" us with an o++ortunity of workin" in this +ro6e!t$

Contents
E5e!uti&e Summary$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$8 Introdu!tion$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$9 Mobile Value Added Ser&i!es in India$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$: Industry %efinition$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$; .he MVAS 0usiness Model$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<= Industry Value Chain$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<= M Commer!e in India$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<< Statement of the +roblem$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<< Moti&ation for the study$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ << S!o+e of the study$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<> (imitations of the study$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<> .he s+e!ifi! !ontribution whi!h this study has made from an industry stand+oint$$$$$$$$$$$$$$$$$$$<> (iterature Re&iew$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ <> Resear!h Methodolo"y$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<8 Ob6e!ti&es of the Study$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<9 ?y+othesis$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ <9 O&er&iew of Resear!h Methodolo"y$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<9 Sam+le/ Sour!e and Method of %ata Colle!tion for the study and +eriod of study et!$$$$$$$$$$$$$<9 .abulation/ %ata Analysis and Inter+retation @7indin"s$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<: Sam+le Statisti!s$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<: Auestionnaire Analysis *ith Inferen!e$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<: Summary of 'ey Results/ Su""estions and Con!lusions$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$>8 0iblio"ra+hy$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$>:

E;ecuti-e Su

#ry

.he mobile +hone is !omin" of a"e as it be!omes an inte"ral +art of our life/ and its a++li!ation e5tends from basi! &oi!e !allin" to instant messa"in"/ !al!ulator/ mini !amera/ musi! +layer to an internet ready/ a++li!ation dri&en !om+utin" system$ *hile the rea!h of the mobile +hone is a for!e to be re!koned with and its +otential to deli&er ser&i!es is immense/ the ran"e of ser&i!es !urrently bein" offered in the Indian market is !ertainly limited$ ?owe&er/ the +lethora of needs/ from health and edu!ation to finan!ial in!lusion and "o&ernan!e/ that it !an ser&e are unlimited$ In this !onte5t/ this study seeks to understand the !urrent and future state of Mobile Value Added Ser&i!es ,MVAS- in India alon" with some of the key dri&ers/ !hallen"es/ and solutions whi!h !an s+ur the "rowth of the e!osystem .o understand this to+i! thorou"hly/ I studied lot of #rticles from the different 6ournals@re+orts$
A< After understandin" the to+i!/ I fi"ured out a +roblem whi!h is fa!ed by the mobile

o+erator in !arryin" out MVAS a!ti&ities$ .he "roble st#te e!t for the resear!h study was de!ided as Whether the Mobile operator will be able to attract non buyers, acquire new customers and retain existing customers through MVAS activities 0 *ith this ob6e!ti&e in mind/ I +re+ared a =uestio!!#ire and !ir!ulated the Buestionnaire online$ I "ained C= res+ondents for the sur&ey !ondu!ted and then later analy3ed the data to brin" out a !on!lusion$ After analy3in" the data/ ha&e made fe> reco e!d#tio!s$ Some of the re!ommendations are2

Marketers also need to remember that 9=D ha&e ne&er transa!ted in mobile$ Consumers need reassuran!e o&er se!urity/ edu!ation about a&ailability of ser&i!es/ and ease of use$ More +rodu!t information is needed on the mobile internet$ .his is an o++ortunity for +ublishers and retailers/ and will be!ome an im+ortant +art of e&ery mobile marketerEs 6ob/ so that !onsumers are aware of whatEs a&ailable$ Ser&i!es that are likely to do well in!lude2 #rodu!t re&iew sites and !onsumer forums Com+arison sho++in" ser&i!es %is!ount sites and !ou+on ser&i!es #ri!e a""re"ators Classifieds Mobile !ontent is still mu!h in demand$
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 .hose industries that will win in the immediate term in!lude2 .ra&el 4ad"ets #hysi!al media

0anks and mer!hants ha&e a !ru!ial role to +lay in reassurin" !onsumers about their se!urity$ Messa"es between banks/ mobile +ayment +ro&iders/ mer!hants/ e-wallet +ro&iders/ tel!os/ and so on/ ha&e be!ome in!onsistent and di33yin"$ Consumers do not know who to trust/ who to !hoose/ what is best$ Industry standards need to be set$ .he followin" tools are im+ortant first ste+s2 In demand are ser&i!es ,su!h as SMS notifi!ations- whi!h reassure users$ 0alan!e enBuiries an im+ortant a!ti&ity ahead of +ur!hase$

Introduction
India is a !ountry of a billion +lus +eo+le with needs s+annin" a!ross basi! hy"iene and sanitation/ !lean drinkin" water/ basi! health!are/ +rimary edu!ation to adeBuate housin"/ roads/ hi"her edu!ation/ bankin" fa!ilities/ disease !ontrol/ and disease mana"ement$ Ea!h +roblem is e5a!erbated by its sheer ma"nitude$ .oday/ we still stru""le to disseminate basi! bankin"/ health/ and edu!ation ser&i!es to lar"e se"ments of the +o+ulation$ F .o rea!h a billion +lus +eo+le and ensure eBuitable distribution of basi! amenities and ser&i!es is a diffi!ult +ro+osition "i&en the "eo"ra+hi!al s+read and dis+arate le&els of infrastru!ture de&elo+ment$ ?owe&er/ the ability to fulfill key needs of the !iti3ens is also a minimum reBuirement for +ro+ellin" "rowth and de&elo+ment in the !ountry$ In this a"e/ te!hnolo"y is a "reat enabler for "rowth/ whi!h !uts a!ross all se!tions and strata of so!iety$ India has the o++ortunity to take its "rowth story to the ne5t le&el and a!hie&e a sustainable basis by le&era"in" te!hnolo"y to the fullest$ F In todayEs world/ instantaneous e5!han"e of &arious forms of data has enabled ser&i!es from edu!ation to health!are ins+ite of limited +hysi!al a!!ess to ser&i!e +ro&iders and +hysi!al forms of data$ *ith the ra+id s+read of mobile te!hnolo"y there is ho+e that some of these basi! ser&i!es !an thus be +ro&ided to a far "reater number of +eo+le at an e5+edited +a!e$ F .here is no doubt that the mobile +hone is the te!hnolo"y +rodu!t that has tou!hed the hi"hest number of Indians to date$ *hile the tele&ision s!reen dominated our li&es for the lon"est time/ and the #C and the internet em+owered urban India to take its +la!e on the "lobal business sta"e/ it is the mobile +hone that Indians ha&e taken u+ with "usto $ *ith 9== MillionG subs!ri+tions far sur+assin" all fore!asts and estimations/ the mobile +hone has be!ome ubiBuitous in the !ountry$ .hese numbers are e5+e!ted to "row e&en further "oin" u+ to nearly <==D +enetration in the ne5t 8 years$ .his +henomenon !an be a si"nifi!ant dri&er for "rowth and de&elo+ment in India$ A!!ordin" to a *orld 0ank study9 there is a +ositi&e !orrelation between the le&el of +hysi!al a!!ess and so!ioe!onomi! de&elo+ment$ Mobile +hones ha&e been an inno&ati&e answer to brid"in" the distan!e$ F .he rea!h and +enetration of mobile +hones !an ensure the deli&ery of a lar"e number of ser&i!es in a !ost effe!ti&e/ fast and seamless manner e&en >without +hysi!al a!!ess/ as is seen
6

from su!h initiati&es around the world$ *ith the ad&an!ement in te!hnolo"y/ e&en mobile +hones at the lowest +ri!e +oints today !an su++ort +owerful a++li!ations whi!h em+ower the user in a &ariety of ways/ from e5!han"in" information &ia SMS/ a!!essin" entertainment based ser&i!es to !he!kin" bank a!!ount details/ !ro+ +ri!es/ re!ei&in" +ersonali3ed health alerts and obtainin" &o!ational trainin"$ .his makes mobiles +hones the +erfe!t medium to deli&er a &ariety of !ontent and ser&i!es/ or as referred to in +o+ular +arlan!e H Mobile Value Added Ser&i!es ,MVAS- - to the Indian +o+ulation$

Mobile Value Added services

I!dustry Defi!itio! .he nature of &alue added ser&i!es !han"es o&er time$ A VAS may be!ome !ommon+la!e and !ommoditi3ed su!h that it !eases to +ro&ide a basis for differentiation$ 7or e5am+le/ #># SMS was the only form of VAS in the early days of ado+tion of mobile tele+hony in India$ 4i&en the !urrent state of the industry #># SMS has !eased to +ro&ide a meanin"ful tool for ser&i!e differentiation/ and therefore has not been in!luded for !al!ulatin" the market si3e for the +ur+ose of this study$ $ro>th Dri-ers 4i&en the !hallen"es +osed by the Indian mobile tele+hony market as hi"hli"hted in the se!tion abo&e/ MVAS is likely to be!ome a tool for additional re&enue/ ser&i!e differentiation/ and !ustomer retention$ .ele!om o+erators are lookin" at MVAS as the ne5t wa&e for "rowth and a lar"e !hunk of re&enue is e5+e!ted to flow in from VAS in the near future$ .he "rowth in the market will be +ro+elled by o+erator initiati&es/ as well as by the followin" ma!ro-e!onomi! fa!tors2 The boo i!& I!di#! eco!o y/ India has emer"ed as one of the fastest "rowin" e!onomies in the world/ with s+endin" on infrastru!ture and !onsum+tion "rowin" at a ra+id +a!e$ 4rowin" em+loyment o++ortunities ha&e resulted in a si"nifi!ant in!rease in dis+osable in!ome/ leadin" to a "rowin" a!!e+tan!e of new te!hnolo"ies and e5+enditure on !ommuni!ation I!cre#si!& user co fort >ith b#sic obility ser-ices/ .he Indian mobile tele+hony market has attained !riti!al mass due to the in!reasin" affordability of mobile ser&i!es/ as well as the in!reasin" !omfort with basi! mobility ser&i!es$ A lar"e !hunk of users are !omfortable with o+eratin" their mobile +hones/ and would +ro"ress into demandin" more &alue-add beyond basi! &oi!e a++li!ations/ dri&in" the ne5t +hase of "rowth$ Perso!#li)#tio! of co!te!t #!d de-ices/ 7or a lar"e number of subs!ribers/ the mobile +hone has be!ome an e5tension of their +ersona$ .he su!!ess of !aller rin" ba!k tones is e&iden!e that users are willin" to ado+t ser&i!es whi!h offer them the +ossibility of +ersonali3ation

Market Size:

The Indian Mobile Value Added Services (MVAS) industry is estimated to grow to ` !"#$$ crores by #$%& 'rom the current estimated size o' ` %#"#$$ crores (

)on*voice revenues currently constitute about + %$, o' revenues o' Indian telecom o-erators( A com-arison with other countries (.e'er /igure &) indicates an average o' +#0," -roviding large sco-e 'or growth o' MVAS in India( Telecom o-erators" who have made heavy investment commitments to the tune o' ` 12"$$$ crores collectively in 03 s-ectrums2" and will need to make 'urther investments in setting u- the network in'rastructure 'or 03" are

looking to the MVAS market to enhance their A.45s in the ne6t 'ew years(

The MVAS Business Model

MVAS has also resulted in the emer"en!e of an entirely new business e!o-system "i&in" rise to su++ortin" industries su!h as !ontent de&elo+ment and a""re"ation$ .here are multi+le
10

stakeholders +layin" a!ross the MVAS &alue !hain many with o&erla++in" roles and fun!tions$ .he main stakeholders in&ol&ed in the VAS &alue !hain are Co!te!t co"yri&ht o>!ers/ At the first le&el of the MVAS &alue !hain are the !ontent !o+yri"ht owners/ whi!h de&elo+ ori"inal !o+yri"ht !ontent$ E5am+les in!lude musi! +rodu!tion houses ,SaRe4aMa/ Sony-/ 0ollywood +rodu!tion houses ,Iash Ra6 7ilms-/ and media houses ,Sony/ Star/ Jee/ et!$Custo i)ed co!te!t cre#tors/ Refers to !om+anies that "enerate !ustomi3ed !ontent for users throu"h their own +ortals$ E5am+les in!lude Mau6/ One K:/ and ?un"ama Mobile$ Co!te!t "ort#ls?#&&re&#tors/ .hese are indi&iduals@or"ani3ations that "ather web !ontent and in some !ases distribute !ontent to suit !ustomer needs$ E5am+les in!lude Indiatimes and ?un"ama Mobile$ Mobile o"er#tors/ .hey +ro&ide trans+ort and su++ort me!hanisms for deli&ery of mobile !ontent$ E5am+les in!lude Airtel/ Relian!e/ 0S)(/ M.)(/ ?ut!h/ Idea Cellular/ et!$ Tech!olo&y e!#blers/ On the other end of the &alue !hain are te!hnolo"y enablers$ .hese +ro&ide te!hnolo"y +latforms that enable a!!ess to MVAS$ #layers in!lude On Mobile/ 0harti .elesoft/ *ebaroo/ et!$ +#!dset #!uf#cturers2 Mobile handset manufa!turers ha&e also started +layin" an im+ortant role/ throu"h their intera!tion with all other stakeholders a!ross the &alue !hain$ .heir a!ti&ities in!lude embeddin" software links in their handsets/ allowin" dire!t a!!ess to !ontent +ortals/ !reatin" ser&i!es !ustomi3ed to the need of !ertain re"ions/ et!$ 'ey +layers in the Indian market in!lude )okia/ Motorola/ and Samsun"$ M-Commerce in ndia F Only 8D of all mobile subs!ribers are re"istered users of mobile bankin" and more si"nifi!antly/ only =$8D of them are a!ti&e mobile bankin" users<8$ .hese are also +rimarily restri!ted to information based ser&i!es$ F ?owe&er/ in order to a!hie&e the tar"et of <==D finan!ial in!lusion/ initiati&es ha&e been taken by the "o&ernment and by the re"ulator/ R0I to su++ort finan!ial in!lusion and +romote MCommer!e in India2 H R0I issued LMobile 0ankin" .ransa!tions in India H O+erati&e 4uidelines for 0anksE in %e!ember >==K and has !ommuni!ated willin"ness to rela5 @ modify norms as the market e&ol&es and new models and se!urity me!hanisms emer"e$ H R0I has in!reased mobile +ayment limit to Rs$8=/===$ H Earlier/ only a Closed *allet was allowed$ )ow/ a Semi Closed *allet has been allowed$ 0harti Airtel was "ranted the li!ense to use the Semi Closed *allet by the R0I$ In another re!ent de&elo+ment/ R0I issued Semi Closed Mobile *allet li!ense to It3 Cash as well whi!h is a non-bank semi !losed +re-+aid +ayment issuer in India$

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H An o+en wallet system/ whi!h may fuel ra+id su!!ess of these ser&i!es in India/ is yet to be allowed in the !ountry$ ?owe&er/ the )ational and #ayments Cor+oration of India ,)#CI- - set u+ by R0I/ as an umbrella institution for all the retail +ayments system in the !ountry - is !urrently +ilotin" a #erson-to-#erson ,#>#- money transfer me!hanism !alled the LInterbank Mobile #ayment Ser&i!e ,IM#S-E$ Si5 of the leadin" banks in India are +arti!i+atin" in this +ilot/ whi!h !an hel+ in "reater e5+ansion of mobile bankin" ser&i!es$

Statement of the problem

*hether the Mobile o+erator will be able to attra!t non buyers/ a!Buire new !ustomers and retain e5istin" !ustomers throu"h MVAS a!ti&ities0

Motivation for the study

My interest in the .ele!om Se!tor whi!h I de&elo+ed when I was studyin" this sub6e!t and also lot of readin" whi!h I ha&e done s+e!ifi! to the se!tor $

Scope of the study

.he mobile +hone is !omin" of a"e as it be!omes an inte"ral +art of our life/ and its a++li!ation e5tends from basi! &oi!e !allin" to instant messa"in"/ !al!ulator/ mini !amera/ musi! +layer to an internet ready/ a++li!ation dri&en !om+utin" system$ *hile the rea!h of the mobile +hone is a for!e to be re!koned with and its +otential to deli&er ser&i!es is immense/ the ran"e of ser&i!es !urrently bein" offered in the Indian market is !ertainly limited$ ?owe&er/ the +lethora of needs/ from health and edu!ation to finan!ial in!lusion and "o&ernan!e/ that it !an ser&e are unlimited$ In this !onte5t/ this study seeks to understand the !urrent and future state of Mobile Value Added Ser&i!es ,MVAS- in India alon" with some of the key dri&ers/ !hallen"es/ and solutions whi!h !an s+ur the "rowth of the e!osystem $.he study del&es into the +otential of MVAS to enhan!e the Buality of life and standard of li&in" for ma6or se!tions of the Indian +o+ula!e/ in!ludin" the effe!ti&e and effi!ient deli&ery of "o&ernment ser&i!es

Limitations of the study

.his study is more s+e!ifi! with the MVAS se!tor and hen!e few !on!lusions drawn out of it may not be true to s+e!ifi! se!tor $

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The specific contribution which this study has made from an industry standpoint
.he !on!lusions drawn out of this resear!h +ro6e!t !an hel+ the tele!om +layers to de!ide on the future MVAS strate"ies based on !ustomer +referen!e$ !iterature "eview .he (iterature sur&eyed for this resear!h !an be di&ided into 8 broad areas2 >$< .he MVAS 0usiness Model$ >$> .he ad&ertisin" +ers+e!ti&e in MVAS Industry >$M 'ey %ri&ers Of Mobile Value Added ser&i!es$ >$C 0enefits for the !ustomers/ role of the de&i!es and future demand for different +layers$ >$8 'ey reasons for India to look at M-Commer!e as a fo!us area .he followin" se!tion +ro&ides an outline of literature re&iewed under ea!h of the abo&e heads$ :07< The MVAS %usi!ess Model/ Rese#rch %y %osto! A!#lytics3 Oct :66@ MVAS has also resulted in the emer"en!e of an entirely new business e!o-system "i&in" rise to su++ortin" industries su!h as !ontent de&elo+ment and a""re"ation$ .here are multi+le stakeholders +layin" a!ross the MVAS &alue !hain many with o&erla++in" roles and fun!tions$ .he main stakeholders in&ol&ed in the VAS &alue !hain are Co!te!t co"yri&ht o>!ers/ At the first le&el of the MVAS &alue !hain are the !ontent !o+yri"ht owners/ whi!h de&elo+ ori"inal !o+yri"ht !ontent$ E5am+les in!lude musi! +rodu!tion houses ,SaRe4aMa/ Sony-/ 0ollywood +rodu!tion houses ,Iash Ra6 7ilms-/ and media houses ,Sony/ Star/ Jee/ et!$Custo i)ed co!te!t cre#tors/ Refers to !om+anies that "enerate !ustomi3ed !ontent for users throu"h their own +ortals$ E5am+les in!lude Mau6/ One K:/ and ?un"ama Mobile$ Co!te!t "ort#ls?#&&re&#tors/ .hese are indi&iduals@or"ani3ations that "ather web !ontent and in some !ases distribute !ontent to suit !ustomer needs$ E5am+les in!lude Indiatimes and ?un"ama Mobile$ Mobile o"er#tors/ .hey +ro&ide trans+ort and su++ort me!hanisms for deli&ery of mobile !ontent$ E5am+les in!lude Airtel/ Relian!e/ 0S)(/ M.)(/ ?ut!h/ Idea Cellular/ et!$ Tech!olo&y e!#blers/ On the other end of the &alue !hain are te!hnolo"y enablers$ .hese +ro&ide te!hnolo"y +latforms that enable a!!ess to MVAS$ #layers in!lude On Mobile/ 0harti .elesoft/ *ebaroo/ et!$

13

+#!dset #!uf#cturers2 Mobile handset manufa!turers ha&e also started +layin" an im+ortant role/ throu"h their intera!tion with all other stakeholders a!ross the &alue !hain$ .heir a!ti&ities in!lude embeddin" software links in their handsets/ allowin" dire!t a!!ess to !ontent +ortals/ !reatin" ser&i!es !ustomi3ed to the need of !ertain re"ions/ et!$ 'ey +layers in the Indian market in!lude )okia/ Motorola/ and Samsun"$ :0:- The #d-ertisi!& "ers"ecti-e i! MVAS I!dustry %y Mr0 Sh#shi Si!h# CEO 1o#dest#r/ Mr$ Shashi Sinha CEO (oadestar said/ *ith the ad&ent of M4/ ad&ertisin" +otential is bi"$ 0ut the tri!k is to +ersonali3e the !ontent that is bein" dished out$ More !om+etition is sure to dri&e down +ri!es but the need of the hour is not to be restri!ti&e but ha&e an a""re"ate$ Ad&ertisin" and !ontent is surely set to inte"rate from M to 8 years from now$

:09< .ey Dri-ers Of Mobile V#lue Added ser-ices/ Rese#rch by ASSOC+AM & Deloitte .he key dri&ers for Ntility MVAS in!lude2 ,<- 4o&ernment mandate for in!lusi&e "rowth$ ,>- In!reasin" mobile +hone/ and network +enetration ,M- )eed for differentiation amon" tele!om o+erators and de&i!e manufa!turers ,C- In!reasin" !onsumer demand and awareness/ e&en in non-urban areas ,8- 0usiness need of ser&i!e +ro&iders su!h as hos+itals and banks ,9- Automation due to Information and Communi!ations .e!hnolo"y ,IC.An analysis of Ntility MVAS re&ealed broadly three kinds of ser&i!es2 ,<- Information based ser&i!es whi!h usually in&ol&e one way dissemination of information su!h as e+idemi! alerts/ disaster mana"ement u+dates/ et!$ ,>- A++li!ation based ser&i!es whi!h ha&e a le&el of intera!ti&ity/ and reBuire the !onsumer to +lay an a!ti&e role su!h as !he!kin" the status of +ayments/ IVR based lan"ua"e trainin" ser&i!es/ et!$ ,M- Enablement ser&i!es whi!h in!lude ser&i!es formin" a !lose substitute of those +ro&ided by a +hysi!al infrastru!ture su!h as a bank or a s!hool$ .hese ser&i!es usually in&ol&e transa!tions su!h as +erson-to-+erson +ayments/ tra&el reser&ations et!$ :05< %e!efits for the custo ers3 role of the de-ices #!d future de #!d for differe!t "l#yers / Accordi!& to Shri Peeyush A&#r>#l3 Chief $e!er#l M#!#&er3 0Mr0 Su!)#y P#ss#ri3 E;ecuti-e Vice Preside!t- VAS & De-ices3 Ess#r Teleco %usi!ess $rou"3 Mr0 Sh#shidh#r#! 4 M#!#&i!& Director3 %h#r#t E;hibitio!s

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Shri #eeyush A"arwal/ Chief 4eneral Mana"er ,*ireless Ser&i!es-/ M.)( shared informati&e statisti!s with the "uests and brou"ht out different elements that !an benefit the +eo+le throu"h VAS ser&i!es "enerated with M4$ India is uniBuely +ositioned/ M-0ankin" and M-Retail will be "reat re&enue boosters$ .hrou"h M-bankin"/ different ser&i!es of bankin" !an be done on the mobile/ almost ne"atin" the reBuirement of "oin" to a +hysi!al bank$ M-Retail will eBui+ !onsumers and &endors to buy and sell more easily$ Su!h inno&ati&e ser&i!es will be a "reat boon to the +eo+le$ *hile itEs not 6ust about the o+erator ser&i!es/ the de&i!es also +lay a bi" role$ Mr$ Sun3ay #assari/ E5e!uti&e Vi!e #resident- VAS & %e&i!es/ Essar .ele!om 0usiness 4rou+ elaborated/ .he !a+ability of a de&i!e !annot be i"nored and the !a+ability of M4 and C4 is hu"ely different$ Com+utin" network is +ro"ressi&e and essentially we need data hun"ry de&i!es$ Infa!t mobile is 6ust one of the de&i!es$ .here is little differen!e between what a mobile/ tablet/ note+ad/ #C !an do$ It is a !hallen"e for the o+erators and ser&i!e +ro&iders to +ro&ide !ontent to !ater their res+e!ti&e markets$ .he shifts in dominan!e of +layers ha&e also !han"ed/ es+e!ially in the +ast year$ A!!ordin" to Mr$ Shashidharan H Mana"in" %ire!tor/ 0harat E5hibitions/ VAS is e&erywhere today$ .here is tremendous +otential for all ser&i!e +ro&iders and o+erators$ *ith Smart+honeEs makin" its way into a broader !onsumer base/ we ha&e a hu"e !hallen"e in front of us$ Mana"in" data/ network/ infrastru!ture with !onstant ad&an!ement is the key to sur&i&e$ :0A< .ey re#so!s for I!di# to loo* #t M-Co %y ASSOC+AM & Deloitte erce #s # focus #re#/ Rese#rch

70 ,i!#!ci#l i!clusio!/ A $o-er! e!t Priority .he Indian 4o&ernment and the Reser&e 0ank of India ,R0I- ha&e !learly identified L7inan!ial In!lusionE as one of the key ob6e!ti&es for this !ountry$ In >==9/ the R0I !alled for <==D finan!ial in!lusion in India$ 7or this +ur+ose/ the R0I and the Nnion "o&ernment are workin" in tandem to make banks +ush the a"enda on in!lusi&e "rowth/ both in s+irit and numbers$ :0 +i&h ,i!#!ci#l E;clusio! BC< Sa&in"s a!!ount is the basi! bankin" +rodu!t/ !onsidered to be essential for all adults in an e!onomy$ In India/ the ratio of sa&in"s a!!ounts to adult +o+ulation is as low as 8K D$ In!or+oratin" the multi+le a!!ounts held by some adults/ it is estimated that H More than 8=D of the Indian +o+ulation fa!es !om+lete finan!ial e5!lusion ,)o Sa&in"s A!!ountH 7inan!ial e5!lusion in urban India is about CCD H 7inan!ial e5!lusion in rural India/ whi!h !om+rises 9=D of the Indian +o+ula!e/ is a!ute/ with about :9D of the rural +o+ula!e fa!in" finan!ial e5!lusion$

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90 Mobile/ 2ides"re#d Cost Effecti-e Ch#!!el India has O9== Mn mobile subs!ribers/ "rowin" at a ra+id +a!e$ Com+ared to the :=/=== bank bran!hes in India/ !aterin" to the 9/==/=== &illa"es and !ities/ the mobile is a far more wides+read/ and !ost-effe!ti&e !hannel$ It is in!reasin"ly diffi!ult for banks to e5+and in rural areas be!ause of &arious infrastru!ture/ man+ower/ and o+erational +roblems$

Research Methodology
After formulatin" the resear!h +roblem/ the resear!her is interested to find out a suitable way to sol&e the +roblem$ Resear!h methodolo"y is the way to systemati!ally sol&e that +roblem$ A resear!h methodolo"y !onsists of &arious ste+s$ A resear!her should ha&e detailed knowled"e before im+lementin" all the ste+s of resear!h methodolo"y$ .he resear!her must dei"n the ste+s of resear!h methodolo"y fo!usin" on the resear!h ob6e!ti&es and the lo"i! behind it$ .hus when we talk of resear!h methodolo"y we not only talk on resear!h methods but also !onsider the lo"i! behind the methods$ 'ee+in" the !on!e+t in mind the study desi"ns the followin" resear!h methodolo"y$

Objectives of the Study

*hether the Mobile o+erator will be able to attra!t non buyers/ a!Buire new !ustomers and retain e5istin" !ustomers throu"h MVAS a!ti&ities$

Hypothesis
Mobile +hones !an be a +owerful !hannel to deli&er essential information and ser&i!es to the !iti3enry &ia the "o&ernment and +ri&ate +layers/ there are also some fundamental !hallen"es that need to be addressed

Overview of Research Methodolo y

.his study often in&ol&es the des!ri+tion of the e5tent of the asso!iation between two or more &ariables$ .he +resent study basi!ally deals with the mobile VAS and !onsumer beha&ior$

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Sample! Source and Method of "ata #ollection for the study and period of study etc$
Resear!h desi"n2 %escri"ti-e desi&! of rese#rch was used to obtain the +rimary data$ Method of data !olle!tion2 Sur-ey ethod %ata !olle!tion is one of the most im+ortant methods for any resear!h$ *ithout data !olle!tion the study does not do data analysis$ If a resear!her is unable to do data analysis then the out!ome may not be +ossible/ so data !olle!tion is im+ortant$ %ata are of two ty+es &i3/ +rimary and se!ondary data$ .here are &arious sour!es of !olle!tin" +rimary and se!ondary data$ Auestionnaire is one of the methods of !olle!tin" +rimary data whi!h the study ado+ted$ After doin" literature re&iew related to mobile MVAS and !onsumerEs beha&ior in national !onte5t the Buestionnaire has been made$ Auantitati&e resear!h te!hniBue2 .he =uestio!!#ire was administered online to the sele!ted sam+le whi!h +ro&ided us with the ne!essary information$ .he resear!h was !arried out usin" ma5imum !losed ended Buestions desi"ned to !olle!t the reBuisite information from the res+ondents$ Sam+lin" method2 .he study took the hel+ of R#!do S# "li!&$ .he data ha&e been !olle!ted throu"h stru!tured Buestionnaire whi!h has been "re tested amon" the resear!hers and fa!ulties before +ostin" the final one$ Sam+le si3e2 56 ,+eo+le stayin" anywhere in the !ountry-$ Resear!h .ime %uration2 .he resear!h took a++ro5imately <8 days$ .here is no bud"eted e5+ense for this resear!h as the sur&ey was !ondu!ted online$

#abulation, $ata Analysis and nterpretation %&indings

Sample Statistics
A"e

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<:->8 >9-M8 M9-C8 C8 or more

< > > C > >

M=D 9=D 8D 8D

4ender

Male 7emale

> = > =

8=D 8=D

?a&e you e&er +ur!hased any +rodu!t throu"h online transa!tion usin" mobile +honeP

Ies )o

< = M =

>8D :8D

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If Ies/ *hi!h +rodu!ts ha&e you bou"ht in the +ast 9 months usin" your mobile +honeP

4ro!eries Ele!troni!s and small a++lian!es .ra&el ,ti!kets/ a!!ommodation et!Content for my +hone ,e" "ames/ &ideos/ m+Ms/ rin"tonesdont use mobile for m !ommer!e

= C < = 9 M =

=D <=D >8D <8D :8D

*hi!h ser&i!es ha&e you used on your mobile +hone in the +ast 9 monthsP

%is!ount &ou!hers 4ettin" more information about a +rodu!t Che!kin" +ri!es online

< MD < >8D = : <;D

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Bibliography
<$ The MVAS %usi!ess Model/ Rese#rch %y %osto! A!#lytics3 Oct :66@ htt+2@@www$bostonanalyti!s$!om@leadin"1thou"hts1resear!h@ba1m&as1in1india1res ear!h1re+ort1<=1=:$+df >$ The #d-ertisi!& "ers"ecti-e i! MVAS I!dustry %y Mr0 Sh#shi Si!h# CEO 1o#dest#r/ htt+2@@www$knowyourmobile$in@news@;<C;;8@m&as1to1tou!h1rs1C;===1!rore1by 1>=<81in1M"1ready1indian1tele!om1industry$html M$ .ey Dri-ers of Mobile V#lue Added ser-ices/ Rese#rch by ASSOC+AM & Deloitte AND .ey re#so!s for I!di# to loo* #t M-Co erce #s # focus #re#/ Rese#rch %y ASSOC+AM & Deloitte htt+2@@www$deloitte$!om@assets@%!om-India@(o!al D>=Assets@%o!uments@%eloitte1ASSOC?AM1MVAS1Study$+df

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