Mobile VAS in India to hit $3 bn by 2012

According to a recent report in a leading publication, the first wave of Mobile VAS companies offering regular ringtone and music downloads seems to be over.VC’s are more interested in innovative product offerings in this space like mobile payment options, advertising, voice-based SMS and satellite video streaming.Mobile VAS has a $700 mn market today, which is expected to hit $3 bn by 2012. Ringtones and ringbacktones offer low revenues. VCs today are looking at applications that are independent third party innovations and are not dictated by operators.The more niche the service, the better are the chances of it being noticed.
 The Indian government will auction 3G spectrum later this year and that is set to trigger a new war in the Mobiel VAS segment with newer players wanting to join the fray to offer high-end content.

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