India’s Mobile VAS Industry

I have tried to put together some numbers to give a better perspective of India’s MVAS industry. Would love to get feedback on the numbers. These have been assembled from multiple sources, and are not completely accurate but they give an idea of the revenue streams. The key point: what is touted as a $1+ billion industry (what subscribers pay) is in reality only a $200 million industry from the VAS providers point of view, thanks to the skewed revenue shares between the operators and the VAS players.

Key Numbers as of March 2008

Mobile Subscribers

250 million

Avg. ARPU

Rs 250 / $6

Industry Revenue

$ 1.5 billion per month

Annual Revenue

$ 20 billion

Market Cap

$ 120 billion

VAS Providers Revenue

$ 0.18 billion

VASPs Market Cap

$ 1.5 billion

 
ARPU Split of Rs 250

Voice + Rentals

90%

Rs 225

Includes Rentals, Activation Charges, etc.

P2P SMS (primarily)

Also: GPRS Data, Call Roaming, CLI

5%

Rs 12.50

None of this flows through to the VAS Providers

Other VAS

5%

Rs 12.50

Rs 4,300 cr / $1 billion annualised revenue

Revenue for VASPs

17% of the 5% above

Rs 2

Rs 750 cr cr / $180 million annualised revenue

VAS Revenues by Category

 

Category

Penetration

Numbers (million)

Revenue (Rs / mo)

ARPU

Total Revenue (Rs / mo)

VAS Revenue (Rs / mo)

Annual VAS Revenue

Key Players

P2P SMS

35%

80 m

Rs 30

Rs 11

Rs 250 cr

Rs 3,500 cr

CRBT

25%

65 m

Rs 25

Rs 5.50

Rs 165 cr

Rs 30 cr

Rs 350 cr

OnMobile

BhartiTele

Hungama

IVR / Voice Portal

15%

30 m

Rs 20

Rs 3

Rs 60 cr

Rs 10 cr

Rs 125 cr

OnMobile

One97

Cellebrum

Downloads (Ringtones, Wallpapers, Games)

10%

25 m

Rs 10

Re 1

Rs 25 cr

Rs 6 cr

Rs 75 cr

Hungama

SMS Subs.

5%

15 m

Rs 20

Re 1

Rs 30 cr

Rs 6 cr

Rs 75 cr

One97

P2A SMS

15%

30 m

Rs 6

Re 1

Rs 30 cr

Rs 6 cr

Rs 75 cr

IndiaTimes

Misc

Re 1

Rs 50 cr

Rs 5 cr

Rs 50 cr

TOTAL (ex-P2P SMS)

250 m

Rs 12.50

Rs 360 cr

Rs 63 cr

Rs 750 cr


Points to note:

  • P2P SMS Penetration is about 35-40%, while VAS Penetration is at best 25-30% of all users
  • SMS in all its forms (P2P, P2A, Subscriptions, A2P) is the biggest revenue generator after voice
  • Music (as part of a broader Entertainment category) is the bedrock of the VAS Industry accounting for over 50% of non-Voice/SMS revenues (CRBT, Ringtones)
  • Voice Portals are the other big revenue generator, as they are the gateway to a wide variety of content

251 thoughts on “India’s Mobile VAS Industry

  1. Pingback: Mobiles in India: Value added services at Broadband Blog

  2. What were the triggers which led to the change of rev share in developed markets? How and when will it change in India – 3G and entry of new players, better content, speed, etc., MVNOs, or consolidation in the content aggregation space (better negotiation) or exclusive deals for content with committed volumes? I am only referring to Downloads & Misc.

  3. Rajesh is bang on… and I always wondered how this industry didnt look deeper…

    I just want to add another point – I did read on some blog that majority of Indians will access the internet on the mobile phone (which will give rise to another new set of valuation and revenue stream projections) – the truth here is that if you classfiy the majority of ringtone and wallpaper downloads as intenet access (which is again a phenomenon in RURBAN* markets; UP, Bihar etc) I fail to understand how can we ever say these consumers are accessing internet in the real sense.

    RURBAN* – rural(ly) urban 🙂

  4. Great man……….very informative it actually brings lot of things in a single sheet.
    Great work .. keep it up

  5. Hi Rajesh

    U have veey well shown the table of VAS Revenues by Category.

    I just had a few doubts regarding the same.

    1)CRBT revenue is 25 RS in table, But on an avg the cost of CRBT is 45 RS.
    2)What does the item “SMS Subs.” mean?

    Besides that what is the source for this penetartion numbers for CRBT, SMS etc

  6. Pingback: Best of 2008: Mobile VAS and Data

  7. Dear Sir,
    Please provide complete detail of VAS. I want to use this services here in KArnal (Haryana)

    Regards
    Rajesh Jangra
    919215794386

  8. Dear Sir,

    plz send complete VAS revunue deatail. also send me top five company revenue deatails
    actually i just wany learn about this.

    vijay

  9. Rajesh,

    – The P2A rev is not 15%.
    – The marginal subcribers acquired by mobile operators today are majorly from rural areas where SMS literacy is an issue.
    – Lower call rates than SMS rates has also impacted this table.

    If you can post the updated data.

    Regards,
    Vikas

  10. Rajesh,

    – P2A revenue is not 15% ( highly optimistic 5-8%)
    – With the mobile operators acquiring the marginal subcribers from rural market, SMS literacy is a major issue.
    – Call rates are lower than SMS rates have also impacted the P2P revenues.

    Would appreciate If you can post the latest data.

    regards,
    VikAS

  11. Hi
    Do you have any updated info on the VAS and GSM industry?
    Can you please share more info?
    You can reach me on my mob +91 98216 27155

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  13. Hello Sir,

    I really appreciate your work on VAS and mobile industry. But i would be happy if the sources are also mentioned.

    Thanks,

    Ashish Kite

  14. Hello,

    we do need connections with distribution channels
    so you can help us with the distribution of our mobile content and services…

    pls mail me on mail id.

    thanks

    chetan

  15. I have negative rights of more than 250 movies how can i exploit the content through mobile.

  16. Hi !!
    I want to enter into the market of VAS as a content creator keeping Quality and turntime as my strength. Is it possible for any of you to guide me or whom can I provide my content.

    Thanks in advance !!

    Regards,

  17. Hello all! i am doing masters in media & entertainment from whistling woods international. presently i am busy in my thesis on Value added services . could you please mail me the details about mobile vas . actually the table shown up , is very good but i need it for recent 2009.
    contact-+91 9029987539
    thanks..

  18. Can you help me fetching the figures for ringtone revenues in the year 2009?

    Cheers !!

    Vimita

  19. Hi,
    Can you provide updated figures for current fiscal year, we need figures about VAS penetration whether they increased or decreased and which is the key player around in Globe…

    Thanks,
    Girish

  20. Link other service sectors VAS industry is also in its growing stage, but it has a great future in this. Its greatful to me to be a part of VAS industry.

    Cheers
    Anil Kumar

  21. Tell me the best profile for this industry and why?Also brief the growth of vas industry.

  22. Hey Mr. Jain,

    I have to take the facts from the table above mentioned, So can u tell me basic source which this data has been prepared.

  23. Hey Rajesh,

    What is the base for the individual services penetration numbers? Is it All India Population or Mobile Users / Subscribers?

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