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:

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