MVAS mkt in India set to grow to US $9.5 bn in 2015: rpt

The Indian MVAS market will grow at a CAGR of 25 pc between 2012 and 2015 to reach US $9.5 billion in 2015, from an estimated US $4.9 billion in 2012, predicts a joint research report titled "Future Thought of Business (FTOB): MVAS" by Wipro Technologies and The Internet and Mobile Association of India (IAMAI).

Wipro and IAMAI conducted an in-depth evaluation of over 450 consumers and providers of MVAS in India to identify the major drivers and barriers of the Indian MVAS market and provide insights that will help to grow this market. The research focused on the mEducation, mEntertainment, mFinance and mHealth application areas and found that there is pent up market demand from consumers for sophisticated mobile services in India that have the potential to improve the overall quality of living.

"Basic informational mobile services are set to decline in India," said Ayan Mukerji, Senior Vice President, Global Head - Media and Telecom, Wipro Technologies. "We have found that India's consumers will increasingly purchase enriched and transformational education, health, finance and entertainment services. An expected MVAS revolution in India is being made possible by the dramatic growth in mobile device penetration and mobile network capacity and this market offers abundant opportunities for growth to all industry participants."

Opportunities for different participants in the Indian MVAS market include:

· Domestic mobile operators could focus on providing better network and connectivity

· Global operators could increase their base by testing new VAS offerings in the Indian market

· Content and VAS technology could focus on the consumer experience and developing personalized content

· Original equipment manufacturers could innovate with lost cost smartphones and mobile devices to drive penetration

To realize the market's full potential, the industry requires a collaborative effort across mobile network operators, telecom equipment vendors and mobile service content providers. "So far, this market has been hampered by a lack of services innovation," said Dr. Subho Ray, President, IAMAI. "By forging mutually agreeable partnerships, we can improve customization and localization of content and create services with a compelling consumer value proposition. The Indian MVAS market offers tremendous potential to all industry participants and those companies that can offer innovative services will stand to benefit the most" Dr. Ray added.

The research findings reveal that mEntertainment is the largest contributor to operator MVAS revenues and provides key opportunities in localized vernacular content, on-demand music and video content and live TV shows and events. On the other hand, mEducation can play a key role in expanding the reach and quality of education in India, through Interactive English Language Learning Services, Competitive Examination Preparation Solutions, Tutor-on-call and Vocational training. mHealth has the potential to improve healthcare access and affordability in India especially through Remote Diagnostics, Chronic Disease Management and Maternal Care. Mobile phones will also play a key role in extending financial services to the 40 pc of India's population who are unbanked. mFinance through Mobile Wallet Services, Mobile Remittance Services and Business Correspondence Model Based Services will contribute to MVAS revenues.

The report also highlights areas of concern that the industry could collectively address:

Value Perception. Even though 96 pc of the survey respondents accessed the internet on mobile devices, only 56 pc had subscribed to some form of paid MVAS

Service Complexity. Complexity was consistently rated as a key barrier to service adoption. For instance, 64 pc of participants believed that advanced mobile health services would to be too complex to use.

User Experience. Users expressed concern about the unique aspects of the mobile experience that could compromise usability. For instance, 56 pc of participants were concerned about the screen size of mobile devices.

 

The complete research report can be found at:

<http://www.wipro.com/Documents/beyond_the_tip_of_the_iceberg.pdf>