According to the IAMAI-Analysys Mason Vision Document on Mobile Value Added Services (MVAS), these services have the potential to become a Rs 671 billion market by 2015, contributing 31 per cent of the overall wireless revenues.
This growth will be driven mainly by mobile data (both on handsets and dongles/connected computing devices), contributing 54 per cent of the overall MVAS market by 2015. Non-voice revenues are expected to contribute 51 per cent to the overall incremental wireless revenues in 2015.
Kunal Bajaj, partner and director India, Analysys Mason, said, ?Carriers are under tremendous pressure from competition and declining ARPUs, leading to stunted revenue growth. Based on recent trends in the sector, now is the right time for them to increase focus on the VAS space to find new opportunities for differentiation and earnings.?
The report added that off-deck VAS providers face issues from the lack of an alternate billing mechanism and delays in allocation and implementation of short codes. Off-deck providers are VAS companies that use carrier infrastructure and billing for their products and services, but the marketing and branding is independent of the mobile operators.
The report further recommends a premium number policy that can provide an alternate payment mechanism. This, the report states, can be achieved by giving companies the flexibility to control end user pricing of their services, be aware of their share of the end user revenue and be guaranteed that their services will work across all carriers.
