Value Added Services 1

8/4/2019 Value Added Services 1

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Value Added Services

Avinash Gupta



Flow of Presentation

• ‘‘VAS’ – DefinitionVAS’ – Definition• VAS Players in IndiaVAS Players in India• Mobile VAS Industry in IndiaMobile VAS Industry in India

• Revenue Model for OperatorsRevenue Model for Operators• Examples of popular Vas services and other Examples of popular Vas services and other

applications.applications.• Indian ‘VAS’ Industry – near futureIndian ‘VAS’ Industry – near future• Indian ‘VAS’ Industry - ChallengesIndian ‘VAS’ Industry - Challenges• 3G services in India3G services in India



VAS- FeaturesVAS- 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 ondemand, M-commerce, Mobile-shopping

• Voice-based services such as PTT and WDA



VAS Players in IndiaVAS Play

ers in IndiaACL Wireless Bharti Telesoft Digital Strait Jataayu

Active Media BUGZY EnableM J9 Mobile

Air2Web Buzzcity Go2andPlay July Systems

AOL Mobile Callup GoBindas Kirusa

AstroYogi Mobile Cellebrum Geodesic Lifetree

Astute Systems Cellnext Hungama Mobile Mauj

Baytalkitec Cellent HarmonixProductions

mChek

Buongiorno India Canvasm Intvo SoftwareTechnologies

mGlitz



.....contd.....contd

Mobio Sarayu Telecom ValueFirst

MyZus Sasken Voicegate India

Mobile2Win Speak Wireless Yahoo Mobile India

Niche Tech Services(NTS)

Sued WiderThan India

One97 SKJ Technologies Worldphone

On MobileTagit Webdunia

OnyxMobile Tangering DigitalEntertainment

Ziva Software

ORG Telecom Tech Mahindra ValueFirst



Mobile VAS Industry in IndiaMobile VAS Industry in India

• India is now the 5 th country in the world to have crossedthe 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 morehave got the license

• 4g is also in the line so big scope is pending......



Revenue Model for operator

66

6

6

6 66 66 66 66 66 66

% Share

Operator Copy Right Holder Developer

66 66

66

6 6

6

66

66

66

66

% Share of Revenue

CRBT / RT P P SMS6 P A/ A P SMS6 6 Games Others



Revenue Model .....contd



Popular VAS ServicesPop ular VAS Services

• Entertainment VAS

CRBT

RINGTONEGAMESJOKESMMSUMMIMGPRSPTT



Popular VAS ServicesPop ular VAS Services• INFO VAS

STOCK UPDATES

NEWSEDUCATIONTICKETSINTERNET

ASTRORESULTSWEATHER UPDATESTVWAP



Popular VAS ServicesPop ular VAS Services

• M-COMMERCE VAS

TRANSACTIONAL SERVICESMOBILE BANKINGUTILITY PAYMENTBUY TICKETS

FUND TRANSFER



Indian ‘VAS’ Industry – near futureIndian ‘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 inVAS.

• The arrival of new technologies like 3G & 4G.

• Saturation in Metro and Urban Market - capitalizing onVAS will give operator opportunity to increase ARPU byproviding premium services

• Increasing need and demand from consumers

• Mobile VAS is now also popular in India's biggest Ruralmarket.



Indian ‘VAS’ Industry –Indian ‘VAS’ Industry –NEAR FUTURENEAR FUTURE



Indian ‘VAS’ Industry -Indian ‘VAS’ Industry -ChallengesChallenges

• To cater diverse needs and requirements of the endcustomer.

• 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 existingecosystem for Content owners and Aggregators



3G services in India3G services in India

• The market for 3G in the country is expected to be hugewith 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 enabledhandset

• 3G spectrum offers 4-5 times the voice capacity of 2Gspectrum and thus 3G is a cost-effective tool to deliver voice

• In urban India, 3G facilitates faster data/voice connectivityenabling video on demand



....contd

• In rural India, 3G can enable telemedicine, virtualmarketplace 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 morematured 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 morefocus on new product like 3G & 4G.

• Need to be clear in technical & marketing hurdles toachieve bench marks.

• Need to focus on customer wave length and moderateproducts range



Thank You

Avinash Gupta

Value Added Services 1

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