Value-added services set to grow

With technology getting more sophisticated every passing moment, the Indian market for value-added services (VAS) is attracting wireless operators, handset manufacturers, content developers, music and film companies.

It is no wonder that operators are banking on VAS to increase their average revenue per user.

As mobile entertainment is set to become a $5 billion business in India in the next two years, Kanwalinder Singh, Qualcomm president for India and SAARC, said the companies and ad agencies were looking for new ways of marketing.

Addressing "VAS India 2006" in the capital, Singh said, "Value added services are providing 10 per cent of the total revenues for telecom operators at present but the growth is expected to be 20 to 30 per cent per annum."

Pointing out that demand for VAS was growing in India at 60 per cent per annum, Arvind Rao, CEO, Onmobile said demand in ring back tone alone was over eight to nine million everyday. Over 20 million people were using multi-media services. VAS demand would go up further as local languages begin to be used.

Advertisers are now planning to project their message in an entertainment video to gain maximum impact on the consumer through mobiles.

The advertisement will be in a scroll, WAP and voice based format and it will be sent only to selective mobile users.

Mobile operators will scrutinise the users based on their choice of downloads such as astrology, cricket, songs, matrimonials and finance.

The user will then be sent a contest form and from the choice of answers, the subscriber can be known. The contest will contain 5-6 questions based on the download. The service is called Opt-in service.

Factors such as phone bills and roaming pattern will also be considered by the company. The companies assume that nearly six million users will opt for the service initially and the number will increase gradually.

The companies are expecting to earn a revenue of $45 million from the service and it is expected to roll-out in 3-4 months. The global mobile phone industry provides revenue of $585 billion from value added services.