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
