Date post: | 21-Jan-2015 |
Category: |
Technology |
Upload: | shambhu-arvind |
View: | 3,016 times |
Download: | 0 times |
Shambhu Arvind
MVAS Presentation
To a housewife, MVAS is an SMS which enables her to participate in “India’s Got Talent”.
To a student latest music track which he/she uses for his/her ringtone or updating his/her facebook on the go.
For the farmer it is mandi rates which get updated on his mobile.
What is MVAS?
Non core or non Basic
service
Independent in terms of
profitability
No Cannibalization of core service
Framework/Operational
Synergy
Stimulates demand for core service
Commands
Premium Price
Characteristics of VAS definition
Content/App
owner
Content
Aggregator
Technology
Provider
Network Operator
Customer
Handset
manufacture
r
Stakeholders in MVAS
Lucrative for Operators
Customer is Ready• More than 600 million people armed with mobiles want to be entertained/informed/ when they are travelling, waiting or simply living.• And they are willing to pay for it
Host of Hot services
MVAS
MVAS Scope.
Entertainment VAS
• These generate high volume and high usage. E.g. CRBT, Jokes etc.
Information VAS
• These services provide useful services to users. E.g. Stock updates, News, Education.
Commerce VAS
• It involves transactions using mobile phones. E.g. Money transfer.
Types of MVAS
Decrease in ARPU.
Need for differentia
tion.
Increasing need.
Demand from
consumers.
Need of MVAS
(M)VASt future
MVAS Market
In Rs. Bn
Year Amount Y-o-Y change (in %)
2006 28---
2007 46.5 66.1
2008 75.1 61.5
2009 97.6 30
2010 122 25
2011 158.6 30
2012 214.1 35
2013 30
Source: Assocham Financial Pulse
Effective bundling and packaging of services, innovative practices and extension of coverage areas will also augment the market size.
278.3
Saving New Born
• Doctors in Malabar Region of Kerala, quickly access online medical references on mobiles and PDAs for checking drug dosage schedules, indications for the drug and the contra-indications.
Life Saver
• In Tamil Nadu, fisherman are using a new tool: an app which tells them the wave height, wind direction, temperature and the weather forecast called fisher friend mobile.
How MVAS are changing the Landscape?
Rural VAStness
• 3 million people, mostly in rural India, have signed on to Nokia’s Life tools text-messaging information service that delivers commodity prices, weather data and even English education one word a time.
Facebook Mania
• In April 2009, Aircel launched an Ad campaign with MS Dhoni showing how he used Facebook on the move. Result: Uncommon and Electric: User Base in India doubled from under 5 million users to 10 million users of facebook.
How MVAS are changing the Landscape?
Rural VAS can create two basic niches in rural market:
Connectivity: Enables agricultural inputs like Mandi rates, Weather etc. Social welfare networks could go forward in enhancing the life of rural users.
Entertainment: Creating another portal for entertainment starved rural India.
Rural SCOPE of MVAS
…..and it will change every business in INDIA.
3G is here…
Allotted •86.1 MHz•The allotted mobile spectrum using both GSM and CDMA in Delhi Circle.(Population – 31.5 million Mobile users)
Allotted •250 MHz•In UK, the allotted mobile spectrum given to operators. (Population – 10-11 Million Mobile users(London))
In Effect •In effect, 9 Indian mobile phone consumers make do with spectrum available to one UK phone user, explaining the quality.
The Great Indian Spectrum Bazaar
Thus, the applications need to be light (in comparison to foreign developed apps). MVAS needs to have strong sensory and visual appeal to users. MVAS with independent Branding and Appeals are the need of the hour.
2010
2011
2012
2013
2014
2015
0 20 40 60 80 100 120
0.1
1
3.5
10
26
107
Users in Mn.
Users in Mn.
3G Subscriber ProjectionSource: PwC Analysis
India has beaten the projections in mobile telephony and this will happen again. MVAS potential becomes huge once the true picture of 3G comes to the fore.
600+ million mobile subscribers, all potential converts.
Availability of low cost handsets.Lack of availability of broadband services.3G enabled handsets already in market.Young demographic profile of users.Enterprises/Corporate.High VAS usage by other sectors.
Why 3G could fly?
When 3G Flies, MVAS will soar.
2% 3%4%
3%
1%
4%
5%3%
5%
3%
11%35%
21%
Sales Mobile TV
Gaming
Location Based Services
Govt. Services
VoIP/IM
TeleMed/TeleEdu
Enterprise services
Video services
Video Calling
Mobile Commerce
Application Store
Internet Browsing
Music Services
3
Music services
Apps
Mobile Broadband Services of Future
Internet Browsing
Source: Business Today & PwC Analysis
2010 2011 20150
100
200
300
400
500
600
700
800
120
712
265
ARPU (in Rs.)Current Benchmark
Perspective Analysis
With the increase of ARPU after the introduction of 3G, who will benefit the most in monetary terms?
Perspective Analysis contd..
Content/App
owner
Content Aggrega
tor
Technology
Provider
Network Operator
The answer is, the whole ecosystem of MVAS.
In 2009, MVAS were adding 9% to operator’s revenue.
In 2010, estimated contribution would be 12% i.e. 600mn X Rs.120 X 12 = Rs 86400 Crores X 12% = Rs 10368 Crores.
This will hugely increase because another 1 million users would be spending Rs.712 per month after the introduction of 3G in year 2011.
Penetration Opportunity.
Source: PwC Analysis
HUGE
Potential of VAS
Thank You.