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Indian MVAS Industry To Reach Rs 48,200 Cr By 2015: Deloitte

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The Indian mobile VAS industry is estimated to reach Rs 48,200 crores by 2015 from Rs. 12,200 crores today, consulting firm Deloitte has noted.

The industry derives its revenues primarily from entertainment related services such as games and music downloads, which rake in close to 80% of VAS revenues. Whereas utility mobile VAS, which are services such as m-governance, m-commerce and education over the mobile, currently constitute only 20-25% of VAS revenues, leaving large scope for growth, according to a study of Indian's mobile VAS industry conducted by Deloitte.

"Non-voice revenues currently constitute about ~10% of revenues of Indian telecom operators. A comparison with other countries indicates an average of ~23%, providing large scope for growth of MVAS in India,"said Sandip Biswas, Director, Deloitte India, as reported by Business Standard.

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The absence of policy frameworks and lack of necessary support infrastructure are amongst the challenges facing the utility mobile value added services (VAS)  market, according to  the firm. The cause for concern is non-fulfillment of the critical factors such as policy frameworks being put into place, lack of necessary support infrastructure and the ecosystem in itself.

The firm has called on all participants in the ecosystem to take action. According to Deloitte, it is imperative that the government or regulatory authorities lay down a vision, and a set of guidelines to provide the industry with direction. It has also suggested a phase-wise implementation approach, with initiation, prioritization and deployment stages.


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