The value added services (VAS) market in India is expected to grow from Rs 180 billion in 2012 to Rs 320 billion by 2015. The increasing uptake of 3G services and the adoption of smartphones are going to be the key drivers for the growth of VAS industry.
In an interview with tele.net.in, Debasis Chatterjee, chief executive officer, Netxcell Limited talks about the current trends in the Indian VAS market and a likely future roadmap.
Excerpts?
How has the VAS ecosystem evolved in India?
A few years ago, the VAS ecosystem centred on SMS led content. In early 2000s, caller ring back tone (CRBT) were introduced which turned out to be a big success. Subsequently, voice-based utility services came into play and became popular with the users. Over a period of time operators started offering services like email and general packet radio service (GPRS) to users. And the launch of 3G services has allowed users seamless access to live content.
What are the key growth drivers for VAS uptake in India? What has been the impact of launch of 3G and 4G services?
So far, the Indian VAS services are mainly content based both on voice and data platforms. Entertainment has been the key driver of growth for the VAS sector and in India, it is the youth which drives the VAS market. However, slowly, utility based services are taking off in the country. Following, the launch of 3G, data-based services which offer seamless connectivity to users have become more popular in comparison to voice-based services.
Data-based services are resulting in a better consumer experience. The 3G enabled handsets are allowing users to access internet at high speed and helping them download a larger amount of data. Inspite of these advantages, the uptake of 3G services has not been too encouraging in the country. Further, 4G services as of now are at a very nascent stage. It is likely to take a few years for the 4G services to gain momentum in India.
What are the challenges faced by the VAS segment in India?
VAS segment faces multiple challenges. The industry is struggling with lower revenues. The VAS ecosystem in India is highly fragmented and there is low awareness regarding VAS services amongst users. The stakeholders need to promote and market these services more aggressively. Further, the slowdown in the telecom industry owing on account of regulatory uncertainties has also impacted the growth of VAS market in the country.
What are some of the most popular VAS applications used by consumers today? Going forward, which new applications will be seen in the Indian VAS market?
CRBT, mobile chat, GPRS, and infotainment services are some of the extremely popular VAS services in India. Going forward, utility services will play a bigger role in driving the VAS market. In recent times, merchandisers have launched mobile applications which are gaining traction amongst users.
