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MVAS market in India expected to touch Rs 16,520 crore by 2010

The size of mobile value added services market in India is expected to grow by 70 per cent from Rs 5,780 crore in June 2008 to Rs 9,760 crore in June 2009 and touch Rs 16,520 crore by 2010, according to a joint study by Internet and Mobile Association of India (IAMAI) and IMRB.

The size of mobile value added services market in India is expected to grow by 70 per cent from Rs 5,780 crore in June 2008 to Rs 9,760 crore in June 2009 and touch Rs 16,520 crore by 2010, according to a joint study by Internet and Mobile Association of India (IAMAI) and IMRB.

Out of the current size of Rs 5,780 crore, P2P (person to person) SMS contributes Rs 2,140 crore which fully accrue to telcos. The balance Rs 3,640 crore is divided between various stakeholders including telcos. The study also states that the MVAS industry currently contributes 9 per cent to the operator’s revenues which is likely to go up by 12 per cent by 2010.

According to the study, CRBT/RT (caller ring back tone / ring tone) constituted 40 per cent of the mobile VAS pie in June 2008, up from 35 per cent in December 2006; while P2P SMS constituted 37 per cent down from 40 per cent in December 2006.

Subho Ray, president, IAMAI, has said, “The significance of mobile value added services has to be in the context of falling ARPUs (average revenue per user) of the telcos (telecom companies) and the arrival of 3G, the first will make the operators to consider value added services more seriously and the second will provide the users with an elevated experience.”

“However, in order for the industry to grow to its estimated size it would be absolutely necessary for the telcos and mobile value added service providers to work in true spirit of a partnership. The government, too, needs to set some ground rules for engagement between telcos and mobile VAS companies,” Subho Ray has added.

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