VAS sector in India to be worth Rs. 20,000 cr, says PwC

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VAS sector in India to be worth Rs. 20,000 cr, says PwC
TT Correspondent \| New Delhi \| 12 Jul 2008

The Indian Value Added Services (VAS) sector is set to be worth Rs. 20,000 crore by 2015 from the present level of Rs. 5000 crore reveals a new study report from PricewaterhouseCoopers. The report says even though in the current scenario dominance of SMS in the space is felt with contribution as high as 44 percent, this scenario is likely to change with acceptance of new applications like ringtones, RBTs, GPRS and CLI. The report also expects VAS to pick up with introduction of 3G services in the country. The ever growing presence of youth segment in the overall demographics and availability of feature rich handsets at low prices are also expected to drive uptake of VAS in the country.

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12 Jul 2008(IST)

Comment

though VAS beyond SMS looks interesting. But market for Ringtones, RBT seems to be stagnanat.. still sale of such VAS services are fad ased impulsive buying by consumers.. to reach 20K crore by 2015, VAS place should get expanded beyond ringtones and RBT sale.. like some more serious and useful services m-banking, location based search and making domestic services available on call..., mobile based advertising, m-communities and so on... Service standardisation, User experience and user acceptance shall be given at most importance.. VAS revenue shall get distributed little more propotionately among meber of value chain for faster development of VAS.. Win-Win for all

Posted By :- Sushil Malani

Comment

Couldn't agree more with the comment left by Sunil. The penny pinching should be rationalized, to have better incentives for VAS providers to retain the innovative edge. Secondly, some infrastructural improvements are need to have reasonable user-experience to improve stickiness and move beyond implusive buying.

Posted By :- Banibrata Dutta

Comment

Dear Sishil and Banibrata, VAS market will really shoot up when 3G services are launched

Posted By :- M Ravi

Comment

I agree Ravi, 3G will help VAS to grow. but it will require significant investment by VASP in technology to develop carrier grade applications/services. Then comes its affordability and acceptability my customers... With existing rev. sharing arrangement for VASP will it be possible? who will fund capex need for the innovation? where are the VCs buying Indian VAS story? VAS industry as long as VASP goes is very scattered, consolidation is required and plus some common governing body for all VASPs needed to address all pain points, work on making industrywide acceptable services & protocol standards

Posted By :- Sushil Malani

Comments

M Ravi--------7/26/2008

Dear Sishil and Banibrata, VAS market will really shoot up when 3G services are launched

Sushil Malani--------7/24/2008

though VAS beyond SMS looks interesting. But market for Ringtones, RBT seems to be stagnanat.. still sale of such VAS services are fad ased impulsive buying by consumers.. to reach 20K crore by 2015, VAS place should get expanded beyond ringtones and RBT sale.. like some more serious and useful services m-banking, location based search and making domestic services available on call..., mobile based advertising, m-communities and so on... Service standardisation, User experience and user acceptance shall be given at most importance.. VAS revenue shall get distributed little more propotionately among meber of value chain for faster development of VAS.. Win-Win for all

Banibrata Dutta--------7/25/2008

Couldn't agree more with the comment left by Sunil. The penny pinching should be rationalized, to have better incentives for VAS providers to retain the innovative edge. Secondly, some infrastructural improvements are need to have reasonable user-experience to improve stickiness and move beyond implusive buying.

Sushil Malani--------7/28/2008

I agree Ravi, 3G will help VAS to grow. but it will require significant investment by VASP in technology to develop carrier grade applications/services. Then comes its affordability and acceptability my customers... With existing rev. sharing arrangement for VASP will it be possible? who will fund capex need for the innovation? where are the VCs buying Indian VAS story? VAS industry as long as VASP goes is very scattered, consolidation is required and plus some common governing body for all VASPs needed to address all pain points, work on making industrywide acceptable services & protocol standards

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