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Mobile VAS Industry

Mobile phones today have moved beyond their fundamental role of communication and have graduated to become an extension of the persona of the user. Users buy mobile phone not just to be in touch, but to express themselves, their attitude, feelings and interest.

Customers continuously want more from their mobile phone. They use their mobile phones to play games, read news headlines, surf the internet, keep a tab on astrology, and listen to music.

The Indian VAS market is still in its emerging phase as compared to the global markets, where VAS services have entered into a more mature phase, in the near future the Indian market is all set to touch new heights. With the aggressive plans that the company has for the Indian market the company’s balance sheet can grow many folds if the fine work that is being done by the company on papers is successfully rolled out in the market.

With consumerism on the rise, innovation and discovery are the two keywords that are driving the growth of the M-VAS sector in India. The M-VAS players today are constantly churning out newer concepts and services to create a differentiation factor and contribute to better consumer experience. Today, M-VAS services are largely entertainment-led with Cricket, Bollywood, and Astrology being the top categories for applications and download in the country. However, the Indian mobile market is on a threshold of a more mature stage, and the road ahead looks even more promising.

The year 2008 itself is being heralded as a significant one for the industry with VAS revenue predictions estimated to reach Rs 4,600 crore by the end of the current fiscal from Rs 2,800 crore in 2006-07, according to Assoc ham. But revenues are not the only encouraging factor that is fuelling the enthusiasm of this industry.

The VAS Industry in India has evolved into a $ 1 billion + industry in 2008 with an estimated annual growth rate of 40 – 50 percent. What makes the industry look ahead is that fact that the mobile service providers are adding up around 10 million new subscribers every month which is expected to take up the mobile subscriber’s base from the present 350 million to 550 million by 2015.

Service Verticals

IVR: Interactive Voice Response       Systems

SMS: Short Messaging Services

USSD: Unstructured       Supplementary Service Data

WAP: Wireless Access Protocol

3G: Third Generation of       developments in wireless       technology

OBD: Outbound Dialing

SIVR: Single Interactive Voice       Response

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