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8/2/2019 Market Research Report : Mobile Value Added Services in India 2012
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Mobile Value Added Services in IndiaMarch 2012
8/2/2019 Market Research Report : Mobile Value Added Services in India 2012
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Executive Summary
Drivers:
Market
Drivers &
Challenges
Mobile Value Added Services (MVAS) market size in India was around at INR x1 bn in 20--With low call and SMS charges, Telecom companies in India are increasingly getting dependent
on revenues from MVAS for higher profitability
Revenue earned from MVAS are shared amongst body1, body2, body3 and, body4 iny1:y2:y3:y4 ratio for content1
Challenges: Low Penetration in Rural Areas
Low Average Revenue Per Unit
Rising Mobile Device Adoption and
Colossal Wireless Subscriber Base
Increase in Disposable Income and
Economic Advancement
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Trends &
Developments
Competition
TRAI Proposes proposal1
Mobile VAS Program1
MVAS for segment1
Major Players
ACL Wireless Ltd. CanvasM Technologies Ltd. Geodesic Ltd.
IMI Mobile Pvt. Ltd. One97 Communications Ltd. OnMobile Global Ltd.
Introduction and Availability of NextGeneration Cellular Networks
Extensive Usage of Plastic Money
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•Introduction
•Market Overview
•Scope in India
Vendor Opportunity
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•Drivers & Challenges
•Major MVAS Players
•Trends & Developments•Strategic Recommendations
•Appendix
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Introduction
Mobile Value Added Services (MVAS) Overview• Mobile Value Added Services (MVAS) are the services provided by telecom operators directly or indirectly, beyond
standard voice calls
• Majority of the MVAS products have the following common characteristics,
It is not a form of basic service, rather adds value to total service offering
Stands alone in terms of profitability
Stimulates incremental demand for core service(s)
It may stand alone operationally
It does not cannibalize basic service(s)
It may provide operational or administrative synergy among other services and it is not merely for diversification
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Source:
Fundamental MVAS Value Chain
Element1 Element2 Element3 Element4 Element5
•The content1 of the product1 which will be served to consumers, are provided by element1
•Element2 create the product2 using tool1 and tool2
•Element3 provides technology1 for the product2 for operation1
•Element4 host the product3 on platform1 and offer the product to elemen5
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Next generation telecom network and MVAS usage are
expected to grow side-by-side, helping each other mutually
• Mobile Value Added Services market size in India was valued at around INR x1 bn in 20--
• With low call and SMS charges, Telecom companies in India are increasingly getting dependent on revenues from MVASfor higher profitability
Around x2% of the total revenue from mobile services, come from MVAS as per 20-- - --
Telecom operators, investing heavily on technology1, is leveraging on product1 to generate returns and overcome cost of technology2
• Element1 in India is at a growth phase currently wherein operation1 has slowly started picking up along with product1consumption, mutually benefiting each other to grow significantly
Considerable adoption is expected between 20-- and 20-- and element2 will attain maturity phase afterwards
• Penetration of roduct1 in rural areas of the countr is still low standin at around x3-x4% as in 20--
Market Overview – India
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MVAS Market Size – India
INR bn
0
+Y1%
20--20--20--20--20--
Source:
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Major MVAS Components & Revenue Sharing Model in India
MVAS Components
Operator
Services
• Product1
• Product2
• product3
Mobile Media• Product7
• Product8Location-Based
Services
• Product16
• Product17
News and
Informative
Contents
• Product10
• Product11
• product12
Communication• Product4
• Product5
• product6Mobile Apps • Product13• Product14
• product15
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Source:
MVAS Revenue Sharing Model
Content Type Body1 Body2 Body3 Body4
Content1 X1% x3% X5% x6%
Content2 x2% X4% x6% NA
•Revenue earned from MVAS are shared amongst body1, body2, body3 and, body4 in y1:y2:y3:y4 ratio for content1
•For content2 the revenue is split amongst body1, body2 & body3 in z1:z2:z3:z4 ratio
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SWOT Analysis of MVAS Market in India
Strengths
• Strength1
• Strength2
• Strength3
• Strength4
Weaknesses
• Weakness1
• Weakness2
• Weakness3
• Weakness4
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SWOT
Analysis
Opportunities
• Opportunity1• Opportunity2
• Opportunity3
• Opportunity4
Threats
• Threat1• Threat2
• Threat3
• Threat4
Source:
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Scope in India - Potential Verticals (-/-)
• Sector1 consists of segmentx1, segmentx2, segmentx3, segmentx4 and segmentx5
• Market size of the sector can be presented in the combined form of INR x1 tr and x2 mn unit consumption per
annum as of 20--
• MVAS can be implemented by processx1, benefitx1, usagex1 and applicationx1
Sector1
• Various services of different verticals can be delivered via Mobile Value Added Services
• MVAS not only ensures format diversity and delivery flexibility but also maximum reach due to the
presence of mammoth wireless subscriber base in the country
8MOBILE VALUE ADDED SERVICES IN INDIA 2012.PPT
• Sector1 consists of segmenty1, segmenty2, segmenty3, segmenty4 and segmenty5
• Market size of the sector can be presented in the combined form of INR y1 tr and y2 mn unit consumption per
annum as of 20--
• MVAS can be implemented by processy1, benefity1, usagey1 and applicationy1
• Sector1 consists of segmentz1, segmentz2, segmentz3, segmentz4 and segmentz5
• Market size of the sector can be presented in the combined form of INR z1 tr and z mn unit consumption per
annum as of 20--
• MVAS can be implemented by processz1, benefitz1, usagez1 and applicationz1
Sector2
Sector3
Source:
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Product1 Value Chain
n d
R e p r e s e n t a
t i v e
( C l i e n t ) Element5
Element1
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B
r
Element4
Cellular Phone Tablet PCPortable
Media Player
emen
Source:
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Drivers & Challenges – Summary
Drivers
Rising Mobile Device Adoption andColossal Wireless Subscriber Base
Increase in Disposable Income and
Economic Advancement Challenges
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Generation Cellular Networks
Extensive Usage of Plastic Money
Soaring Enterprise Demand
Growing Demand for Rich Mobile
Contents
Low Penetration in Rural Areas
Low Average Revenue Per Unit
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Public: Domestic Company – Company1 (-/-)
Company Information Offices and Centres – India
Corporate Address
Adress line1
Adress line2
City. Country
Tel No. +91- --- - -----
Fax No. ++91- --- - -----
Website www.------.com
Year of Incorporation 19--
Ticker Symbol ------
City Name
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Key People
Products and ServicesStock Exchange Exchange1
Category Products/Services
MVAS Products
• Utility VAS Solution• M-Commerce Solution
• Mobile App development
• Digital Asset Management
Name Designation
Mr. X Chief Executive Officer
Mr. Y Chief Financial Officer
Mr. Z Chief Operating Officer
Head Office
Source:
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• The com an incurred a net rofit of INR a1 mn in FY 20-- as
Public: Domestic Company – Company1 (-/-)
Financial Snapshot Key Ratios
Financial Summary
Net Profit/LossTotal Income
0
50
100
150
0
2
4
6
8
Profit
INR mn
Revenue
INR mn
20--
c4
20--
c3
20--
c2
20--
c1
Particularsy-o-y change
(2011-10)2011 2010 2009 2008
Profitability Ratios
Operating Margin 2.23 0.74% -1.49% -9.59% -10.70%
Net Margin -34.74 -35.26% -0.51% 1.00% -37.12%
Profit Before Tax Margin -53.05 -53.57% -0.51% -25.32% -12.44%
Return on Equity -10.93 -11.06% -0.14% 0.21% -5.79%
Return on Capital Employed 0.18 0.06% -0.12% -0.55% -0.48%
Return on Working Capital 78.72 77.98% -0.74% 0.18% -3.99%
Return on Assets -2.26 -2.29% -0.04% 0.05% -1.56%
Return on Fixed Assets -2.88 -2.94% -0.06% 0.09% -2.98%
Cost Ratios
O eratin costs % of Sales -2.95 99.22% 102.16% 112.14% 113.76%
13MOBILE VALUE ADDED SERVICES IN INDIA 2012.PPT
compared to net profit of INR a2 mn in FY 20--
• The company reported total income of INR a3 mn in FY 20--,
registering an increase of a4 per cent over FY 20--
• The company earned an operating margin of a5 per cent in FY 20--,
an decrease of a6 percentage points over FY 20--
• The company reported debt to equity ratio of a7 in FY 20--, an
increase of a8 per cent over FY 20--
Key Financial Performance Indicators
Indicators Value (--/--/20--)
Market Capitalization (INR mn) 10,985
Total Enterprise Value (INR mn) 87,544
EPS (INR) 48.39
PE Ratio (Absolute) 66.9
Improved DeclineSource:
Administration costs (% of
Sales) 1.04 18.03% 17.00% 15.75% 18.00%
Interest costs (% of Sales) 20.57 63.33% 42.77% 45.59% 29.69%
Liquidity Ratios
Current Ratio -54.82% 0.82 1.81 4.42 7.13
Cash Ratio -96.41% 0.19 5.34 2.99 5.66
Leverage Ratios
Debt to Equity Ratio 45.86% 3.82 2.62 2.92 2.72
Debt to Capital Ratio 6.85% 0.75 0.70 0.72 0.71
Interest Coverage Ratio 124.52% 0.01 -0.05 -0.27 -0.46
Efficiency Ratios
Fixed Asset Turnover -9.25% 0.08 0.09 0.07 0.06
Asset Turnover 18.69% 0.06 0.05 0.04 0.03
Current Asset Turnover 5.19% 0.47 0.45 0.11 0.07
Working Capital Turnover-308.15% -2.08 1.00 0.14 0.08
Capital Employed Turnover 58.09% 0.29 0.19 0.16 0.12
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Public: Domestic Company – Company1 (-/-)
Key Business Segments Key Geographic Segments
0%
50%
100%
20-- 20-- 20--20--
0%
50%
100%
20-- 20--20--20--
Product1 Product2 Product3 India Outside India
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Key Information
Description Details
Overview
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Extended Product
Portfolio
• It offers products in the areas of m-commerce, entertainment, media portals and interactive television
programming, mobile marketing, user-generated content and social networking, mobile utility, data and
3G, and information and network through mobile access channels, such as voice, SMS, WAP, USSD, voice,
video, on-device portal, and Web
• Music products comprising Ring Back Tones (RBT), M-radio, reverse RBTs, devotional songs
Source:
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Private: Domestic Company – Company2 (-/-)
Company Information Offices and Centres – India
Corporate Address
Adress line1
Adress line2
City. Country
Tel No. +91- --- - -----
Fax No. ++91- --- - -----
Website www.------.com
Year of Incorporation 19--
Ticker Symbol ------
City Name
15MOBILE VALUE ADDED SERVICES IN INDIA 2012.PPT
Key People
Products and Services
Stock Exchange Exchange1
Category Products/Services
MVAS Products
• Infotainment Services• Mobile Media Contents
• Mobile Voice Solutions
• Call Management Solutions
Head Office
Source:
Name Designation
Mr. XChief Executive Officer and Chief
Operations Officer
Mr. Y President of Sales and Marketing
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Financial Snapshot Key Ratios
Private: Domestic Company – Company2 (-/-)
Particularsy-o-y change
(2010-09)2011 2010 2009 2008
Profitability Ratios
Operating Margin -5.75 59.76% 65.51% 75.51% 84.64%
Net Margin -0.65 20.94% 21.58% 35.03% 43.42%
Profit Before Tax Margin 4.60 27.02% 22.41% 37.00% 46.07%
Return on Equity-0.44 16.63% 17.07% 44.01% 30.53%
Return on Capital Employed -3.04 57.06% 60.09% 121.39% 108.12%
Return on Working Capital -12.19 22.76% 34.95% 62.37% 51.28%
Return on Assets -0.41 16.59% 16.99% 43.60% 30.45%
Return on Fixed Assets 14.16 93.08% 78.92% 166.10% 98.92%
Cost Ratios
Profit / Loss
Revenue
2,248,457.8
1,865,274.2
2,467,384.5
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
0
200,000
400,000
600,000
800,000
1,000,000
20102009
Profit
INR mn
Revenue
INR mn
20112008
770,874.4
16MOBILE VALUE ADDED SERVICES IN INDIA 2012.PPT
Financial Summary
• The company incurred a net profit of INR 470,723 mn in
FY 2011, as compared to net profit of INR 402,544 mn in
FY 2010
• The company reported total income of INR 2,248,458 mnin FY 2011, registering an increase of 20.5 per cent over
FY 2010
• The company earned an operating margin of 59.8 per
cent in FY 2011, a decrease of 5.8 percentage points over
FY 2010
. . . . .
Administration costs (% of Sales)
-3.68 14.87% 18.56% 18.79% 21.10%
Interest costs (% of Sales) -0.01 0.04% 0.05% 0.00% 0.18%
Liquidity Ratios
Current Ratio 19.05% 5.28 4.44 4.10 2.32
Cash Ratio -19.59% 2.29 2.85 1.75 1.04
Leverage Ratios
Debt to Equity Ratio N.A. N.A. N.A. N.A. N.A.Debt to Capital Ratio N.A. N.A. N.A. N.A. N.A.
Interest Coverage Ratio 25.57% 1791.20 1426.42 #DIV/0! 488.03
Efficiency Ratios
Fixed Asset Turnover 20.70% 4.21 3.49 4.65 2.17
Asset Turnover -0.12% 0.75 0.75 1.22 0.67
Current Asset Turnover -30.24% 0.83 1.20 1.32 0.64
Working Capital Turnover -33.35% 1.03 1.54 1.75 1.13Capital Employed Turnover -0.31% 0.75 0.75 1.23 0.67
Improved DeclineSource:
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Private: Domestic Company – Company2 (-/-)
Key Information
Description Details
Overview
• Company2 is a mobile media company which offers solutions for discovery, branding and
revenue generation on the mobile platform
• It caters to content destination management, mobile content creation, aggregation and
mobile marketing
17MOBILE VALUE ADDED SERVICES IN INDIA 2012.PPT
Extended Product
Portfolio
• It offers MVAS solutions via SMS including contests, notifications, special offers, alerts,
WAP links, WAP portal development, mobile advertising, and content management and
distribution
• Its MVAS consultancy and support services include concept and ideation for brand
awareness, higher reach, lead generation, engagement, sales, interactivity, targeted
reach, and content delivery
• It also offers mobile online and offline games as direct consumer MVAS product
Source:
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Trends & Developments
Introduction of
Biometrics in
Education
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Introduction of
Biometrics in
Education
Trend1
Biometric ID Cards
for Public
Transportation
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Biometric ID Cards
for Public
Transportation
Trend2
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Source:
Development2
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Biometrics
Application in
Customs
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Development1
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Strategic Recommendations (-/-)
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Strategic Recommendation2
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Source:
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Thank you for the attentionThe Mobile Value Added Services in India report is a part of Research on India’sTelecommunication Series. For more detailed information or customized researchrequirements please contact:
Kalyan BangaPhone: +91 33 4064 6215
E-Mail: [email protected]
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