MUMBAI: With the falling ARPUs, the biggest question for those in the value chain remains of finding alternative revenue models that give the eco system a boost.
The Day 2 of Ficci Frames 2010 saw representatives of players like Comviva, Nokia, Intel, Hungama, Dolby and Tata Teleservices discuss the possible ways of boosting the VAS segment.
Experts from the industry believe that $ 1.6 billion worth VAS business largely remains unexplored.
Nokia India Marketing Director Vineet Taneja pointed that, “The devices have become powerful, but the services remain underpenetrated as far as consumption goes.” Taneja said that Nokia is now working around a model that will give unlimited music access to its consumers.
As far as fighting piracy goes, the key lies in developing content that is compelling.”We need to fight piracy by making the content compelling, relevant and exclusive and develop subscription models which are almost free.”
Music has remained the mainstay of VAS revenues, bringing in as much as 90 percent of the overall VAS revenues, but moving forward, the common contention was to build up on mobile app’s as alternative source of revenue stream.
Presently, the mobile app’s industry is believed to be worth $ 6 billion, and expected to grow by 12-13 percent by 2013 However, Tata Telecomm Services VAS VP Pankaj Sethi pointed that, “There are very handful of app developers in India, and majority of them work for international players.” Taneja opined that added challenge lied in making the companies understand the potential of mobile apps.
While the market which was earlier dependent on carriers has now moved on with players like Hungama, the need for innovation in the VAS segment remains high.
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