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TopGrowth Trends And Future Prospects Of Mvas In India
In India, value added services like gaming, stock quotes, news, cricket updates, tele-voting, chatting, audio and video streaming etc. are becoming popular. These services differ in content, cost and demand and have been customised by mobile service providers for different segments of consumers (TRAI, 2012). As per the report titled ‘MVAS 2012’ presented by Internet and Mobile Association of India (IAMAI) on Mobile value added services, there has been tremendous growth in MVAS market from the past few years. This growth is attributed to higher adoption rate of MVAS as compared to the rate of growth of new mobile subscribers. The market size of MVAS in India has been INR 260 billion in the year 2012 and is expected to touch INR 332.8 billion by 2013. MVAS Market could be divided into Current MVAS (63%) and Emerging MVAS (37%). The Current MVAS consists of traditional kind of applications such as Caller Ring Back Tones (27%) and SMS based applications (17%). Whereas the Emerging MVAS includes Mobile Apps (10%) and Games (8%) which require higher data usage (Internet and Mobile Association of India [IAMAI], 2012). Mobile value added services have been expected to generate revenue which will reach up to 31% of the total revenue generated by mobile service providers (MSPs) by the year 2015. This growth in mobile value added services is attributed to improved quality and reduced costs of handsets. Apart from this, there has been increase in young generation of customers which like innovative and new mobile applications (TRAI, 2012). According to Dilip Modi, President - ASSOCHAM:
Mobiles today have began to replace roads in our country. While we build the basic amenities and physical infrastructure in our country, we have a huge opportunity to strengthen and leverage the digital infrastructure being built in our country. There is immense scope to develop Utility MVAS services in the country that will bring M-education, M-health, M-banking, M-governance, M-agriculture and other mobile services through digital highway to all sections of our population. (Deloitte & ASSOCHAM, 2011, p. 5)
As per Dr. J.S. Sarma, Chairman - TRAI: