Monday, September 1, 2008

MVAS to generate Rs 11,000 crore by 2010 in India

You will be able to download 15 minutes of your favourite film or a 15minute video of your birthday party on your mobile. This will happen by the end of the year with the expected entry of the third generation (3G) services in the telecom sector.
The mobile value added services (MVAS) sector is expected to generate sales of Rs 11,000 crore by 2010. The MVAS industry will achieve compound annual growth rate (CAGR) of 44 per cent in the next few years. As of today, 60 per cent of MVAS revenues come from audio downloads. But with the entry of 3G services the video downloads will perform a major role.
Source: Television Point
“3G services will provide higher bandwidth on mobile that will enable MVAS provider companies to sell the data that is in the form of video. Currently, video clips having the duration of hardly five seconds can be downloaded. Against this, 3G will allow 10 to 15 minutes of video shoots. Internet access will be much faster and it will give an edge to MVAS providers.”
The Indian consumer’s capacity to adopt new technology is faster than many other nationals. It will lead towards offerings of many more value added services like financial transactions, different advertisements depending upon demography, entertainment downloads and much more.
With the advent of 3G, services like video conferencing and video streaming are expected to refresh the present MVAS space. Given the gradual slump in basic prices 3G services will have a significant role to play in terms of creating a differentiation for operators. With options like mobile number portability (giving options to the subscribers to decide on operators without changing the number) MVAS is bound to play a major part in customer retention.”
As of today, the total wireless subscriber base stand at 28.7 crore and is increasing at a pace of 80 lakh subscribers per month. Out of this, roughly 10 per cent have availed internet services which means that the same number may opt for 3G at the time of the launch of the 3G services.



Twitter Delicious Facebook Digg Stumbleupon Favorites More