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The mobile value added service (MVAS) market in the country is expected to grow 15% to reach Rs 29,900 crore by the end of this year, mainly on the back of rising adoption of mobile internet, says a report.
The MVAS market was worth Rs 26,000 crore in 2012.
"The market size for MVAS in India was estimated at Rs 26,000 crore in 2012...Further, for 2013, this is estimated to reach Rs 29,900 crore, a 15% growth year-on-year," a report by industry body IAMAI-IMRB on MVAS in India said.
The report said MVAS for consumer segment is likely to reach Rs 29,300 crore and that of enterprise segment is expected to go to Rs 600 crore by the end of 2013.
"The consumer segment comprises of 98% of the MVAS market revenue in India. The rest belongs to the enterprise segment which is still in its nascent phase but is poised to see a rapid growth in the near future," it said.
MVAS adoption in India is currently happening on two fronts, which include availability of low priced smartphones and falling 3G rates, it added.
"As more and more smartphones are coming under the sub-Rs 5,000 category, more and people are getting acquainted with their capabilities and using them more...We are witnessing a price war in 3G rates, where the rates slash has been to the tune of 100%," it said.
The report, however, mentioned that the consumer segment of MVAS is also facing challenges at multiple ends such as stricter Trai regulations, poor data networks and non-availability of content.
"The Trai had brought into effect a regulation on July 10, 2013 that required operators to setup a mechanism for double confirmation of VAS requests...It is expected that this will lead to denials of renewals as well as first time requests, resulting in losses to the operators," the report said.
