MVAS industry discusses its future

MUMBAI, INDIA: The Indian Merchants’ Chambers (IMC), one of the oldest trade bodies, organized a meet on Mobile Value Added Services Conference in Mumbai today.

The conference focused on MVAS for NextGen (3G) networks and applications in India, mobile commerce in India, VAS in rural markets, Mobile VAS funding and social networking and mobile marketing/advertising on mobiles.

It aimed to promote, exchange ideas among the industry players and to push forward the mobile value added services which has opened new doors to mobile telecommunications, beyond basic voice services and simple text messaging,

Speaking on the occasion, Peeyush Agrawal, chief general manager – Wireless Services, MTNL said, “First the mobile phone was started as voice centric device but with the transmission of data, it resulted into major problems. However, with the launch of 3/3.5G using HSDPA technology, the mobile device has become multimedia device along with communication.”

About MVAS, Agrawal pointed that it consists of four pillars – infrastructure, access device, technology and content. “The revenue sharing model does not follow international standard and along with it, the users face many challenges using MVAS,” he added.

These challenges include user awareness and user experience, exit barrier due to technological changes, customer’s indecisiveness and no innovation in content.

While, S S Sirohi, deputy director general – VAS, BSNL commented that even in the recession, the Indian telecom sector is a great success story to share with others.

“The competition and regulations in telecom industry has allowed low tariffs to users, however it has lowered the revenues and profits for the operators,” said Sirohi.

“The pressure on profits and revenues has forced the operators to look at other avenues using the same platform. And MVAS has an immense potential to grow and currently the MVAS market is worth around Rs. 2000-3000 crore against the telecom market of Rs. 14000 crore,” added Sirohi.

According to Sirhoi, the MVAS market will reach Rs. 6000-8000 crore by 2012 and services such as mobile banking, mobile commerce and mobile location base services will grow with the 3G spectrum.

Interestingly, Vijay Mukhi, IT expert and IMC’s chairman on IT Committee opined that with the start of 3G services, people will be using more mobiles to surf the Internet and emails rather than laptops and desktops.

“I think the government has taught the private sector in the telecom industry in terms of offering 3G services in India,” said Mukhi.

Nitesh Mittersain, IMC’s convener, Mobile and IT Committee said “MVAS is among very few industries which will grow in double digits even in the downturn.”

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