VAS PPT

Voice is Kinng?

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For millions of years, mankind lived just

like the animals. Then something

happened which unleashed the power of

our imaginations, we learned to talk.

- Stephen Hawking

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State of Current VAS Industry

VAS constitutes ~7-10% of of total telecom revenue for Indian operators.

Digital music (including CRBT and ringtones) constitutes 35% of VAS revenue.

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VAS Revenue Split

P2P SMS: 35%CRBT: 25%IVR : 15%Downloads: 10%SMS Subs: 5%P2A (Peer to App) SMS + Misc: 10%

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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]

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Entities in VAS Value Chain..

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VAS Portfolio

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Perspectives..Numbers

Prepaid connection comprise ~85% of total subscriber base

Almost half of Indians use ULCH (Ultra Low Cost Handsets)

30% of mobile subscribers in India have opted for caller tune services

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More Perspectives/Numbers..

Approx 60% of mobile content downloaded in South India is in local languages

50% of all prepaid mobile phones have less than Rs. 40 balance at any point of time

~45% of the target population cannot afford to pay much for VAS products

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Challenges

Sliding ARPUsBoP segment

Not comfortable with SMSEnglish isn’t the most prominent language.Multiple dialects

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VAS Success Strategy

Sachet Pricing[E.g.: 10 Rs. Recharge Coupon.]

Bundling[E.g: Virgin:MySpace, Spice Mobile: ibibo, Email2SMS; LG: RockeTalk, ]

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VAS-tu Shastra..

Reuters Market Light - a short messaging service costing 60 rupees ($1.50) a month. 100,000 three- month subscriptions

Nano Ganesh Priced between Rs.560 and Rs.1700, about 5,000 farmers

are using the application. Nokia LifeTools

Local Information on seeds/crops etc Sends subscribers an English word each day, explaining how

it’s pronounced and what it means in the user’s native language.

Each of these packages could cost between Rs 25 and Rs 50 a month

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Nascent Market..

Local SearchAirtel receives 500,000 queries a month. BPL’s Mumbai search receives 800 local

queries a day3G Mirage

Will accelerate Mobile Internet VAS Operators/MVNOs will drive the

growth.

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Is Voice the Kinng?

VAS is currently limited to

urban area primarily

driven by entertainment

content. 30% of New Mobile

Users from Rural India [Q2 2008 Report] Mobile handsets costing less than $50 account

for 62 per cent of all imported units.

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Is Voice the Kingg?

SMS, MMS, CRBT, and GPRS would fail Regional/Rural IVR seen as a major

opportunity But where is the compelling content?Competition : SMS?

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Voice – VAS Challenges

Opportunity: Rural, the untapped market.Rural Services : E.g.: Mobile Payments

(cashnxt).

Challenge: Voice Recognition – Not a single engine understands different dialects.

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Thank You!

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Source

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