MUMBAI: The Indian mobile value-added service (MVAS) market is poised to grow at a CAGR of 25 per cent to reach $9.5 billion in 2015 from an estimated $ 4.9 billion in 2012.
Wipro Technologies and The Internet and Mobile Association of India (IAMAI), in a joint research report titled ‘Future Thought of Business (FTOB): MVAS’ revealed that mEntertainment continues to be largest contributor to operators MVAS revenues. The market mainly consists of caller tunes, subscription based alerts such as sports updates, and SMS based contests. However, with the launch of 3G services and a decline in smartphone prices, consumers want newer and more advanced forms of mEntertainment services. Strong demand for these services is expected to come from rural and urban areas alike. It provides key opportunities in localized vernacular content, on-demand music and video content and live TV shows and events.
Wipro and IAMAI conducted an in-depth evaluation of over 450 consumers and providers of MVAS in India to identify the major drivers and barriers of the Indian MVAS market and provide insights that will help to grow this market. The research focused on the mEducation, mEntertainment, mFinance and mHealth application areas and found that there is pent up market demand from consumers for sophisticated mobile services in India that have the potential to improve the overall quality of living.
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“Basic informational mobile services are set to decline in India,” said Wipro Technologies global head – media and telecom senior vice-president Ayan Mukerji. “We have found that India’s consumers will increasingly purchase enriched and transformational education, health, finance and entertainment services. An expected MVAS revolution in India is being made possible by the dramatic growth in mobile device penetration and mobile network capacity and this market offers abundant opportunities for growth to all industry participants.”
mEducation can play a key role in expanding the reach and quality of education in India. The growth in the smartphone and tablet markets is expected to provide a crucial impetus to the education sector, especially with the launch of the low-cost ‘Aakash’ tablet by the government of India. Currently, mEducation services are primarily limited to SMS based examination alerts, IVR and SMS based English language learning and tutor-on-call solutions. However, for mEducation to truly improve learning outcomes the services must be interactive and must replicate the offline learning experience as closely as possible.
The key opportunities are through Interactive English Language Learning Services, Competitive Examination Preparation Solutions, Tutor-on-call and Vocational training.
mHealth has the potential to improve healthcare access and affordability in India especially through Remote Diagnostics, Chronic Disease Management and Maternal Care. Mobile phones will also play a key role in extending financial services to the 40 per cent of India’s population who are unbanked. mFinance through Mobile Wallet Services, Mobile Remittance Services and Business Correspondence Model Based Services will contribute to MVAS revenues.
Domestic mobile operators could focus on providing better network and connectivity and global operators could increase their base by testing new VAS offerings in the Indian market, the report said on the opportunities for different participants in the Indian MVAS market.
Content and VAS technology could focus on the consumer experience and developing personalised content and original equipment manufacturers could innovate with lost cost smartphones and mobile devices to drive penetration, it added.
The report also highlighted areas of concern that the industry could collectively address:
• Value Perception- Even though 96 per cent of the survey respondents accessed the internet on mobile devices, only 56 per cent had subscribed to some form of paid MVAS
• Service Complexity- Complexity was consistently rated as a key barrier to service adoption. For instance, 64 per cent of participants believed that advanced mobile health services would to be too complex to use.
• User Experience- Users expressed concern about the unique aspects of the mobile experience that could compromise usability. For instance, 56 per cent of participants were concerned about the screen size of mobile devices.
To realize the market’s full potential, the industry requires a collaborative effort across mobile network operators, telecom equipment vendors and mobile service content providers. “So far, this market has been hampered by a lack of services innovation,” said IAMAI president Dr Subho Ray. “By forging mutually agreeable partnerships, we can improve customization and localization of content and create services with a compelling consumer value proposition. The Indian MVAS market offers tremendous potential to all industry participants and those companies that can offer innovative services will stand to benefit the most.”
