The last update of Day Two of Infor-Media‘s two-day Value Added Services Conference which ended in Mumbai on Tuesday…By our contributor Prashant Sethi.
Alex Kuruvilla Probir Roy, Director, Coruscant Tec (Editor: This update was earlier attributed to Alex Kuruvilla. We sincerely apologise for the error.)
Looking at the VAS market globally, its revenue generation is expected to be 1/3rd of the total service revenue by 2008. The revenues are then expected to reach $160 billion in 2009. As for Asia, most of the growth that is expected in the telecom industry is likely to come out of data services. Currently data accounts for 25% of total service revenue and it is expected to increase to about 35% in another 3-4 years (this would be set at around $80 billion). Messaging and entertainment are the key drivers of data revenue growth in Asia region- together accounting for 80%.
For many Indians, their first taste of e-applications is via mobile, and mobile is being called – The Net’s new ‘Avtar’. This has evolved the definition of the telecom VAS market, from itemized billing and CLI (stage 1), to sms, essentially P to P (stage 2), to sms which are P to E, MMS, ring tones, ring back tones, wallpapers etc (stage 3), to m-cheque, m-commerce etc. Consequently, the market size numbers vary significantly — estimated to be about 8-10% of total mobile service revenues. SMS continues to dominate with over 60% of VAS revenue, and the current VAS market is estimated to be between $100-150 million.
Cellular operators are now turning to VAS to boost revenue in both data and value added voice services. VAS plays a key role as a service differentiator and important revenue stream to cushion pressure on overall service revenue.