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VAS Gaining Momentum from India’s 3G Roll-out

Posted on November, Tuesday 29, 2011 By itVAR News Network

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As India is moving towards a better and more connected 3G era, Value added service is gaining momentum. VAS continues to increase its share in overall telecom revenues.

Uptake of mobile value added services has been on the steady rise in most of the developed countries. Globally, Mobile Value Added Services (MVAS) accounts for more than 30 percent of the total telecom revenues as compared to 10 percent in India.

Connecting the whole of the nation, the ongoing roll-out of third generation (3G) telecom services across the country will bring in huge business for not just telecom operators but value-added services firms and equipment makers.

Experts believe that revenue from 3G related data services for other VAS value chain players would reach Rs 3,600 crore in 2015. However, content development and lower prices of 3G enabled handsets would play a critical role in terms of achieving the industry expectations.

According to industry experts, emerging economies such as China, India, Indonesia, South Africa, Nigeria, Egypt, Turkey, Israel, Saudi Arabia, Brazil, Mexico, Argentina, Russia, Poland and the Ukraine are expected to increase global MVAS revenues from USD 200 billion in 2009 to USD 340 billion in 2014.

High-end communication services such as Mobile Internet, Mobile Gaming, GPS, Mobile Money, and other innovative mobile applications are more popular in developed economies as compared to SMS based and basic internet services in emerging economies.

A key global trend observed is the shrinking of MVAS value chain. VAS players such as Content Developers, Content Aggregators, Platform Enablers, and Telecom Operators have started growing into each others role.

With the emergence of new technologies and more countries advancing towards 3G & 4G to provide a future path for MVAS to grow exponentially. Moreover, declining voice tariffs across the world, resulting in low ARPUs compels operators to focus on VAS opportunity. Hence, moving forward, VAS is likely to play a very important role in terms of establishing the success ladder for a telecom operator.

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