VAS in India

VAS services (including SMS & ring tones) contributes to approx 10% of the total revenue (range for each operator varies between 5%-12% depending upon operator to operator) of the mobile distribution market in India. Mobile distribution is estimated to be over Rs 80,000 crore market per year in India. VAS revenue is approx 350 crore and projected to grow to over 3500 crore by 2010. The average industry growth is 30-40% for VAS operators.The overall Telecom market is growing with approx 12% in net revenue. The roaming revenue is estimated at $700 millions for all operators of Indian market.

There are many players in the segment and challenges to start a SMS based activity are growing for such organizations as the operators want to have a fresh stuff with economically viable propositions as the market demands for something which would help operators in involving & holding subscribers to slow down the churning. At the same time you have many players like Mauz, Nazara, Onmobile, Imobile including many other players those who has got a formidable presence & do the aggregation of various services and bring it to the operators as a single service for this particular segment.

Having said this, since the subscriber base is growing (at the pace of over 14% per year and would touch 1000 million from current 300 millions and VAS revenue growing at the pace of over 30% per year), any organization having interest related to mobile commerce, VAS would have better edge, if the venture is backed by right level of resources. But the platform needs to be a unique one out of the current available in plenty as this is only going to the differentiator. services which would also be required to initiate this service requires

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