1. Mobile Value Added Services - India
April 2009

2. Executive Summary
Estimated worth INR XX mn in 2008; expected to grow to INR YY mn in 2011
Market Value added services (VAS) accounts for a% of operators revenue
Services offered can be categorized into information, entertainment and M commerce
Drivers: Challenges:
Demand Side Supply Side Biased revenue sharing model
– Increasing consumer – Declining ARPUs Lack of copyright protection and
LE
Drivers & demand for VAS – Rising mobile teledensity authentications standards
Challenges – Medium for advertising – Introduction of 3G based
P
Dominance of pre-paid customers
– Demand for regional applications
content Lack of consumer awareness
Trends S M
– Growing rural market
A
Increased focus of PE/VC firms
Growth in demand for mobile music and gaming
Partnerships between mobile manufactures/ operators & MVAS players
Lack of purchase of feature rich handsets
Growth via acquisitions
Strong demand from corporates for enterprise VAS
A highly fragmented market with many small and medium sized companies
Domestic Players Foreign Players Content Technology
Aggregator
Provider/Creator Enabler
Competition • A •X
•B •Y •X •Y •Z
•C •Z •U •V •W
•A •B •C
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3. • Introduction
• Market Overview
• Drivers & Challenges
• Trends
• Future Outlook
• Competition
• Key Developments
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4. Indian Telecom Market has been growing with rapid increase in
CDMA and GSM mobile subscribers
Overview Mobile Subscribers (2008)
•Total Revenue mn
2008 – USD XX bn GSM E
200
•Total Subscribers – U mn (2008) 150 CDMA
D
LE
Fixed Subscribers - V mn 100 C Y
Mobile Subscribers - W mn B X
P
50 A V W
U
•Tele-density: a% (March 2008) 0
•Projections:
SAM
Total revenues to increase to USD YY bn by
2012
2004 2005 2006
Wireless Operators Market Share (Mar’ 09)
2007 2008
Company 1
Tele-density of the country to go up to b% a%
by end of fiscal year 2009-10 g% Company 2
Company 3
X mn mobile connections by 2012
b% Company 4
Y mn GSM subscribers by the end of 2009 Company 5
f%
Company 6
e% c%
Company 7
d%
Source:
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5. Mobile Value Added Services market is growing strongly with
demand for entertainment services dominating the market
Overview Data and Voice Break-up
• Mobile VAS market is worth INR XX bn in 2008 and is Data
Share of data
forecast to reach INR YY bn in 2011 Voice revenue is increasing
• Mobile VAS accounts for a% of mobile operator’s 100% u% v% w% x% y%
revenues
80%
• Mobile VAS can be categorised as –
LE
60%
Information - News alerts, stock prices, air/rail ticket status, a% b% c% d% e%
bank account balance/transaction alerts etc. 40%
(CRBTs), wallpapers, games, jokes etc.
M-Commerce - M-payment, M-banking etc.
MP
Entertainment - Songs, ringtones, caller ring-back tones 20%
0%
2004 2005 2006 2007 2008
Market Segmentation
2004 SA Video/TV
Ringtones/
MVAS Market Size & Growth
INR bn
200
SMS VAS
Non-SMS VAS
2005 E
Graphics
2006 Music 150 a% D
y%
2007 Information C
100 x%
Services
B w%
2008(e) Games A
50 v% d%
u% c%
2009(e) Segment X to b% b%
a%
witness highest 0
0% 20% 40% 60% 80% 100% growth 2007 2008 2009(e) 2010(e) 2011(e)
Source:
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6. Drivers
Increasing Consumer Growing Medium for Increase in Demand
Growing Rural Market
Demand for VAS Advertising for Regional Content
Demand Side
Drivers
Supply Side
Rising Mobile Tele- Introduction of 3G
Declining ARPU
Density Based Applications
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7. Challenges
Biased Revenue
Sharing Model
Feature Rich
Handsets beyond Lack of Awareness
the Buying Power among Consumers
of Users
Challenges
Lack of Copyright
Protection and Dominance of
Authentications Prepaid Customers
Standards
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8. Key Trends
Increased Focus of PE/VC
Firms
Strong Demand from
Growth in Demand for
Corporate for Enterprise
Mobile Music and Gaming
VAS
Trends
Partnerships between
Growth via Acquisitions Mobile Manufactures/
Operators & MVAS Players
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9. Introduction of A and the growth in demand for B will boost the
market
Introduction of 3G Top Applications in 2008
Change in revenue model
Technology
U
V
W
• Operators share
• Auction for 3G is X expected to decline
expected to take
Z to b%
place in FY 20-- - --
• Other players across
• Will boost mobile
the value chain
broadband Top Applications in 2010 accounting for
penetration as it will
almost c%, as
allow for high speed U compared to a%
data transfer
V currently
X
B
a% of subscribers (approx. X mn) C MVAS is expected to account for
using high-end phones can be
x% of operator’s revenues by 20--
SAMPLE
targeted
Source:
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10. A highly competitive market with players constantly developing
services to capture market share
Overview Market Share
•The market is highly fragmented with a large
number of domestic players
There are more that X companies registered with Company 1
the Internet and Mobile Association of India a%
LE
(IMAI) as VAS enterprises
•Many domestic players have also presence in Company 2
P
b%
the international markets
SA
with a% of revenues from overseas
M
Company Y has presence in more than A countries
Company Z services are available in USA, Ireland,
UK, Spain, South Africa, UAE, Sri Lanka and Others
d%
c% Company 3
Singapore
•Foreign players have also entered the
domestic market to capitalize on the profit
incentives
•Major players
Domestic – Company 1, Company 2, Company 3
Foreign – Company 4, Company 5, Company 6
Source:
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11. Thank you for the attention
The Mobile Value Added Services - India report is a part of Netscribes’ Telecom Industry Series.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA Subhash Chennuri
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