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2009 India Mobility Trends 3 and 4

December 18th, 2008 · 2 Comments

3. Operators will focus on VAS and Data Services in the Red Market: Voice, SMS and quality of network can no longer be used for differentiation – they are now hygiene. The Red Market subscribers got a phone in the first decade of India’s wireless rollout between 1995-2005. They have been using Voice and P2P SMS for between 3 and 13 years. They now want to do much more with their phone – and their time is now coming. 3G will be a big enabler for richer services, and can actually drive higher ARPUs (Average Revenue Per User). We will also see the emergence of Data MVNOs – or mobile computing operators.

4. The Coming Era of VAS Operators: Today, 90% of operators revenues comes from Voice and Rentals. Of the balance 10%, about half comes from Person-to-Person (P2P) SMS. So, VAS accounts for only about 5% of revenue. Operators have primarily focused on voice. I see a new breed of companies emerging who will create direct-to-consumer services and focus exclusively on VAS – think of them as VAS Operators. They will have multiple revenue streams – not just from subscribers, but also from advertisers and businesses. They will be the Genies that make the mobile as magic lamps in the hands of consumers.

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2 responses so far ↓

  • 1 Nadeem // Dec 18, 2008 at 9:43 am

    Your comment regarding data MVNOs is bang on target. This could be a viable business model, especially in metros where 3G connectivity (based on EVDO or HSPA) could be used to support high-speed data services. The MVNO can have a roaming agreement with the parent MNO to allow the MVNO’s subscribers to use the MNO’s network for voice.

  • 2 Mahesh // Dec 31, 2008 at 11:40 am

    Bharti Airtel has set-up the service delivery platform (SDP) for the VAS operators to work with Airtel to offer the services to end users. It will be interesting to watch how/if other big ones Idea,Vodafone,, adopt this model – now that thye have outsourced thier IT to same company as Bharti.

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