Value Added Services

Avinash Gupta

Flow of Presentation
VAS Definition VAS Players in India Mobile VAS Industry in India Revenue Model for Operators Examples of popular Vas services and other applications. Indian VAS Industry near future Indian VAS Industry - Challenges 3G services in India

VAS- Features
Value Added Service (VAS) in telecommunication industry refers to non-core services
[ Core Services- Voice Call & Fax Transmission]

Adds value in total service offering. Stands alone in terms of profitability and also Stimulates incremental demand for core or basic services Do not cannibalize core or basic service. Can be sold at premium price.

.....contd
Provides operational synergy with core or basic services. Includes non-voice advanced messaging services eg. SMS, MMS, MIM, and UM Wireless data services- WLAN, GPRS, 1xRTT, WAP VAS applications including mobile gaming, video on demand, M-commerce, Mobile-shopping Voice-based services such as PTT and WDA

VAS Players in India

ACL Wireless Active Media Air2Web AOL Mobile Bharti Telesoft BUGZY Buzzcity Callup Digital Strait EnableM Go2andPlay GoBindas Geodesic Jataayu J9 Mobile July Systems Kirusa Lifetree

AstroYogi Mobile Cellebrum Astute Systems Baytalkitec Cellnext Cellent

Hungama Mobile Mauj Harmonix Productions Intvo Software Technologies mChek mGlitz

Buongiorno India Canvasm

.....contd
Mobio MyZus Mobile2Win Niche Tech Services (NTS) One97 Sarayu Telecom Sasken Speak Wireless Sued SKJ Technologies Tagit Tangering Digital Entertainment Tech Mahindra ValueFirst Voicegate India Yahoo Mobile India WiderThan India Worldphone Webdunia Ziva Software ValueFirst

On Mobile
OnyxMobile ORG Telecom

Mobile VAS Industry in India

India is now the 5th country in the world to have crossed the 100 million mark in subscriber base. VAS is contributing between 10-12% of the revenue of different Telcos Currently VAS market is 10000 cr Market will double in next 5 years Currently 1 operator is serving 3g service and many more have got the license 4g is also in the line so big scope is pending......

Revenue Model for operator

6 6 % Share 6 6 6 6

6 6

6 6

6 6

6 6

6 6

6 6

Operator

Copy Right Holder Developer

6 6 6 6 6 6

6 6

6 6

6 6 6 6 6 6 % Share of Revenue 6

CRBT/ RT

P 6P SMS

P6 A6 SMS A/ P

Games

Others

Revenue Model

.....contd

Popular VAS Services

Entertainment VAS
CRBT RINGTONE GAMES JOKES MMS UM MIM GPRS PTT

Popular VAS Services

INFO VAS
STOCK UPDATES NEWS EDUCATION TICKETS INTERNET ASTRO RESULTS WEATHER UPDATES TV WAP

Popular VAS Services

M-COMMERCE VAS
TRANSACTIONAL SERVICES MOBILE BANKING UTILITY PAYMENT BUY TICKETS FUND TRANSFER

Indian VAS Industry near future

Indian mobile VAS revenue will double in next 5 year ( 20000 cr.) Source IMRB Decrease in ARPU despite increase TELCO interest in VAS. The arrival of new technologies like 3G & 4G. Saturation in Metro and Urban Market - capitalizing on VAS will give operator opportunity to increase ARPU by providing premium services Increasing need and demand from consumers Mobile VAS is now also popular in India's biggest Rural market.

Indian VAS Industry NEAR FUTURE

Indian VAS Industry Challenges

To cater diverse needs and requirements of the end customer. To market for different categories of VAS To align with operators across circles To interact with large number of content aggregators/ owners To handle the PR issues.

.....contd
To address the language needs across regions To generate relevant regional content for mounting with penetration in rural areas. To address low revenue share in the existing ecosystem for Content owners and Aggregators

3G services in India
The market for 3G in the country is expected to be huge with over 65 million wireless subscribers, Potential broadband subscribers with the deployment of advanced wireless technologies such as 3G. More then 15 % people already having 3G enabled handset 3G spectrum offers 4-5 times the voice capacity of 2G spectrum and thus 3G is a cost-effective tool to deliver voice In urban India, 3G facilitates faster data/voice connectivity enabling video on demand

....contd
In rural India, 3G can enable telemedicine, virtual marketplace and e-learning Operators can ensure better quality of service and reduction of network congestion Upgrading from 2.5G and CDMA to 3G is not a tough challenge compared to investing in WiMax

3G technology has wider deployments and is more matured compared to WiMAX and 4G. Though 3G has created lot of buzz, It provide us higher speed of internet access and availability of content of TV, UGA etc.

Conclusion
VAS is now not a additional services it is also necessary product for operator revenue generation In near future this industry size will be 20000 cr. So more focus on new product like 3G & 4G. Need to be clear in technical & marketing hurdles to achieve bench marks. Need to focus on customer wave length and moderate products range

Thank You

Avinash Gupta