Mobile VAS in India: Numbers that you should know
Mobile VAS Numbers for India:
Key Numbers as of March 2008
- Total Mobile subcribers – 250mn
- Avg. ARPU : Rs. 250/
- Prepaid connection comprise 85% of total subscriber base.
- VAS constitutes 7% of the total total telecom revenue for Indian operators.
- Digital music (including CRBT and ringtones) constitutes 35% of VAS revenue
- Almost half of Indians use ULCH (Ultra Low Cost Handsets)
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 |
Does this mean that VAS market is ~200mn industry only (though the expected CAGR is ~44% )?
Entities in VAS Value chain
- Content/Application Owner – cos. like saregama/mauj/Rajshri who develop coyrighted content
- Aggregator – aggregates content like games/wallpapers/ringtones and distributes it to suit customer needs [players : mauj, hungama mobile, indiatimes mobile etc]
- software developer – develops applications (like payment/games/middleware etc.) for mobile VAS [players - mchek/July systems/webaroo/affle etc]
- Technology Enabler – provides the platform that plugs into telco networks and acts like a bridge between aggregator and telcos [players include OnMobile, cellnext. mauj etc]
Operators still dominate the revenue sharing arrangement in VAS [Of the amount paid by end users, 60-70% is kept by operator, aggregator gets 20-25% and content app/owner gets 10-15% of the revenue]
Via Emergic (with permission from Rajesh) and our earlier post on VAS Market Research
Interesting! Is there some data available on ‘return on capital employed’ on infrastructure and just VAS?
I guess that probably is the reason for SPICE’s exit?
[...] Mobile VAS in India: Numbers that you should know [...]
How do I get a number(like pluggd.in number 567673434) for people to SMS my company. Any cost would be appreciated
Hi Ash,
It’s called a premium SMS number. You can get such numbers from tanla (http://www.tanlasolutions.com/payment_services/premium_sms.htm)
Hello Ash
To get a unique short code across all major operators in india you have to connect to an aggregator.
Ericsson IPX is a Global player in this business.
Please contact for further details.
Regards
//Sujit
sujitshodangi@gmail.com
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5,6 & 7 Digit Short Codes (free CRM tool)
10 Digit Long Codes (free CRM tool)
Online Bulk SMS
Bulk SMS APIs
SMPP & HTTP connectivity
White-labeled SMS Reseller Websites
Office – 0484 6492646, 0484 6491646
Thomas Antony – +91-98468 19078
Prema Sankar – +91-99461 29734
Email: fastalerts@mobme.in
Website: http://www.fastalerts.in
ny data on revenue sharing part of vas..lk sms polls
Please can you send me the latest ARPU split 09 figures
[...] VAS Statistics, VAS Technology I came across this really interest survey that highlighted the VAS Consumption pattern in India. It was noticed that Mobile VAS including services such as music, playing games, surfing Internet [...]
[...] Mobile interconnected industries are every day coming up with fresh and ground – breaking mobile technologies. Mobile VAS accounts to 10-12% of the total telecom revenues. Over 375 million mobile subscribers in India, out of which 8-10% of the total mobile subscribers are expected to be GPRS (General Packet Radio Services) subscribers as well. At present CRBT download and SMS (A2P) mobile VAS seems most popular amongst mobile users. With the launch of 3G services (faster data speed) in India, games download, video streaming, mCommerce, mobile blogs and mobile chat is expected to grow in future. As per TRAI predictions, mobile VAS revenue growth contributing to telecommunication industry is expected to grow to 30% in next 5-7 years, which is way beyond the current contribution of 10-12%. [...]
Hello sir,
I have posted some analysis on my blog about Future of mobile VAS.
your views on it would be appreciated.
Regards,
Ashish Kite