MVAS-INSIGHT

MVAS-Introduction & Themes

MVAS includes all services provided to the end customers beyond standard voice calls. In this definition, Person to Person (P2P) Short Messaging Service (SMS) is also included as a part of MVAS, however, theyre now considered as a minimum requirement for mobile phone operators. Dominant categories within the Non-SMS services include ring tones, music and entertainment, gaming, and mobile browsing.

Prevalent Themes in MVAS M-Infotainment

Entertainment content focused on current trends in media, Bollywood, etc. delivered to the user through music, mobile TV, gaming, books, etc. Examples of existing players: OnMobile Spice Hungama Mobile

M-Connectivity
Communication related applications for audio, video, communication, integration with social networks, etc.

M-Enterprise
Business related applications for mails, ERP solutions, corporate utilities, etc. Examples of existing players:

Examples of existing players:

Nimbuzz Facebook LinkedIn

One97 Communications RIM (blackberry) Nokia (mail for exchange) IMI Mobile

M-Commerce
Retail, banking, and transactions over the mobile phone Examples of existing players: Spice Oxicash mChek NGPay

M-Health
Mobile Health or M-Health is the use of mobile devices in health solutions such as personal apps, patient monitoring systems, updates and alerts, etc. Examples of existing players: AIIMS Apollo Dr. Batras

M-Education
Training and learning related content for organizations, educational institutions, etc. pushed to users through mobile applications over SMS, WAP, USSD, etc. Examples of existing players: Spice EnableM Deltics

Value Chain Entities

MVAS Business Model

Mobile Operator VASP/Platform Owners Content Aggregator Content Owner Handset Manufacturer

Segregation-Value chain

The Consumer value chain The Enterprise VAS value chain

The Consumer value chain

Business that focus on providing VAS to the individual mobile subscribers. Segregation of the major players in the current Value Chain is as mentioned below.: Content Generators These are the companies that own the copyrights of the content. Examples include the music labels, movie production houses, media houses/TV channels. Content Developers These are the companies that create customized content as required by the subscriber preferences. Examples include the companies running their own mobile portal on voice, SMS, WAP or USSD. Content Aggregators These are the companies that aggregate content and make it available to network operators. Examples would include companies that are focused on the content business. They differ from the content developers in the manner that their mainstay is the rights of content and not the mechanism in which it is delivered. VASP These are the companies that provide Value Added applications to the network operators. They may also act like a content aggregator for the convenience of operator and to create a niche for themselves but focused on providing innovative applications to operators. Technology Enablers These are the players that provide the services oriented towards providing Vas to subscribers but may or may not be dependent on the content. To clarify things here, an example to with this is missed call alert services. This seems to be a fair example for understanding how they differ from VASPs. Mobile Network Operator - They are the famous telcos like Airtel, Vodafone etc that provide the transport and support mechanism to provide content and other services to subscribers. Today in India, they own the customer and bill them for providing services. (I would be taking up the revenue flow in a separate post.) Handset Manufacturers Mobile handset manufacturers have also started playing an important role. They have their way by activities like embedding links for direct access to portals in their handsets, etc. Things like On-device Portal are where they play an important role in the value chain.

The Enterprise VAS value chain

The enterprise Value chain is comparatively simple in comparison to the industry value chain. I would like to depict it in a more linear manner rather than complicate things further.
My perspective is that it consists of the following entities: Enterprises Enterprise Service Providers Mobile Network Operator Enterprise User The linear model is depicted in the figure below:

Mobile VAS Ecosystem

Mobile VAS Market

MVAS Market in india Figure in '00 Cr

450 400
350 300 283.07 216.91 166.22 341.10

411.02

250 200 150

100 50 97.6

127.37

0 2009 2010 2011 2012 2013 2014 2015

SMS Traffic World

18

SMS Traffic Fig in trillion

16
14

15.8

12.2
12 10
8

9.4 7.2

6 4
2

0 2012 2013 2014 2015

SMS - The king of mobile messaging

Portio Research (February 2012): 7.8 trillion SMS trillion messages were sent in 2011. SMS traffic is expected to reach 9.6 trillion in 2012. By 2013 worldwide SMS revenue is forecast to break the USD 150 billion mark for the first time next, and will continue to grow for the next two years. Portio says: SMS is not dead. SMS is still the king and will remain so for some time to come Informa (May 2012): 5.9 trillion SMS messages were sent in 2011. SMS traffic is expected to reach 9.4 trillion messages by 2016. However, Informa forecasts that SMSs share of global mobile messaging traffic will fall from 64.1 percent in 2011, to 42.1 percent in 2016, as it loses share to mobile instant messaging (IM).

SMS VAS in India Perspective

1 in 5 urban Indians have used a SMS based VAS service either as a one-off or on subscription basis SMS is an effective marketing tool, showing conversion rates a lot higher than other conventional mediums i.e. TV/Radio etc. 1 in 3 Urban Indian has acted in some manner over the SMS i.e. forwarding to others or enquiring about it. SMS, an advertising medium, has an interaction rate of around 5% A quarter of urban Indians have participated in some sort of SMS contest, a valuable tool for getting consumers involved with products/services

SMS VAS Users City wise Distribution

SMS is a popular medium for delivering Value Added Services (VAS); its a valuable revenue source for service providers, almost 5% of service provider revenue comes from SMS VAS services the highest revenue earning VAS. Vas SMS users
7% 6%

6%
5% 5% 4%

5% 4% 3% 3% 2%
2% 1% 0%

2%

Mumbai

Delhi

Hyderabad Bangalore Chennai

Pune

Kolkata

Gender wise Distribution of VAS Usage

Males are generally more active users of SMS VAS services compared to their counterparts. While males are more interested in getting sports updates females are interested in spiritual and astrology quotes
SMS VAS Services SMS VAS Subscribers News Sport Astrology Jokes
Stocks/Finance/Business Health Tips Chat Movies Jobs Spiritual Love tips

Male 52.10% 60.70% 63.40% 49.70% 52.40%

63.00% 54.50% 57.80% 53.30% 52.80% 47.90% 61.90%

Female 47.90% 39.30% 36.60% 50.30% 47.60%

37.00% 45.00% 42.20% 46.70% 47.20% 52.10% 38.10%

Male Index 100 117 122 95 101

121 105 111 102 101 92 119

Female- Index 100 82 76 105 99

77 95 88 97 99 109 80

SMS Usage in India - Gender Difference

SMS as a Marketing Tool

SMS is increasingly being viewed as a source of getting in touch with their customers. This is evident from the fact that every second person acknowledged receiving marketing/promotional SMS on their phone

The intensity of using SMS for marketing/promotions is quite high with almost 75% receiving a minimum of 4 such SMS.

Global messaging revenues

The worldwide mobile messaging market is worth US$202 billion in 2011, rising to $310.2 billion in 2016. Asia Pacific generated the highest mobile messaging revenues in 2011. In 2011, the main contributors to messaging revenues were SMS 63.5 percent; MMS 15.3 percent; Mobile email 16.2 percent and mobile IM 5.0 percent. Informa (May 2012) predicts that the IM market will be worth US$16 billion in 2016, of which mobile operators will take 54 percent of revenues and OTT messaging service providers, such as WhatsApp and iMessage), will take 46 percent.

SMS Whats in for companies to use the medium?

Companies offering downloads for ringtones/wallpapers/games use SMS as a marketing tool a lot more frequently, 37% of Urban Indians have received a SMS offering such products, followed by entertainment/media companies i.e. movies, music etc, garnering a 36% recall rate.
Vehicle like cars, scooter, bikes 6% Food Services like
restrauant, coffee Shops 7% Travel Products like airline tickets, Railway tickets, Hotels 9%

Urban India

Downloads for Ringtones, Wallpapers, Games 15%

Consumer electronics 9%

Entertainment Product like Movies, Music 15%

other productsand services 12%

Offers to Partcipate in a contest or game 13%

Financial Prodcuts like Banking, Investment, Loans 14%

SMS Marketing in India Usage

Efficiency of SMS as a Marketing Tool

1 in 3 of Urban Indians who receive a marketing/promotional SMS take some action while 2 out 3 deleted or ignore the message completely.
Calling up to inquire (if number available) followed by forwarding message to others are the two most commonly cited actions taken on receipt of marketing/promotional SMS. While 11% also indicated they made a purchase on the basis of information received via SMS

SMS: Action Taken

Called up customer service Wlked into the store to inquire Used the Coupon/Discount
8% 8% 11% 13%
68%

14%

Purchased the products and/or services Forwarded the message to a friend or family member(s) Ignored/Deleted

India: Efficiency of SMS as a Marketing Tool

SMS as an Advertising medium

SMS is so widely used in India that its now becoming a medium for advertising as well. Many companies are using this powerful medium to advertise their offerings. 8% of the urban Indians, approx 40 million have seen an ad in a SMS they have received, while 65% of those who have seen have also read the advertisement message. Such high level of awareness indicates the importance of this medium for advertising. SMS: Advertisement medium
9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%

8.40%

5.50%

Seen AD in SMS

Seen and read ad message in sms

India: SMS as an Advertising medium

SMS: Miscellaneous Uses

2% of urban Indians, approx 6 million have used SMS to get directions 7% have used SMS to get reminders for upcoming bill payments SMS was used as a tool for getting in touch with population by almost all national and regional political parties in recently concluded federal elections. 10% of urban Indians received SMS message(s) from one or more political parties. SMS is also widely used to get people involved in contests for products/services/games etc. 26% of urban Indians have participated in a SMS contest with males participating more compared to females. India: SMS Contests TV is by far the most popular medium for spreading awareness about SMS contests, 87% of all those who participated in such contests found out about them via TV.

VAS ProductAcross the Globe

Market Abu Dhabi Africa Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Brazil China China China China China Company LUUP Frontline SMS Banglalink Banglalink Banglalink Banglalink Banglalink Banglalink Banglalink Banglalink Banglalink Banglalink BBC World Service Trust Grameen Grameen Grameen Grameen Grameen Ericsson Fetion MIT Nokia Nokia/Pearson ZTE Product LUUP Frontline SMS Banglalink Banglalink JobsLink BanglalinkMessenger BanglalinkMobile Money BanglalinkStock Info BanglalinkTravel Guide Banglalinkweb2SMS BanglalinkYellow Pages BanglalinkKrishibazaar BBC Bangla BBC Janla Cell Bazaar Directory GrameenphoneNews Service Job News Stock Update Instituto Vivo
ConexaoBelterra Fetion AgriculturalPrices ganji.cn Mobiedu ZTE Primary Business Challenge Secondary Business Challenge Business Tool Networking Mentorship Business Tool Resources Networking Marketing Business Tool Market Data Resources Networking Marketing Marketing DigitalChannels DigitalChannels Marketing Market Data Mentorship DigitalChannels Marketing Market Data Resources Market Data Resources Networking Market Data DigitalChannels Business Tool Networking Business Tool Marketing Resources

Mentorship

Marketing Mentorship Market Data

East Africa Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt Egypt, Nigeria

Ericsson Endeavour Global Etisalat Etisalat Etisalat Etisalat Mobinil Mobinil Mobinil Mobinil Mobinil Mobinil Mobinil Mobinil Vodafone Vodafone Vodafone Vodafone Vodafone Endeavour Global

Ericsson MobileWeather Alert 3alSMS ConferenceCalling EtisalatFacebook Mubasher SMS Alerts ConferenceCalling Fax Info SMS MobinilFacebook MobinilMessagingService SMS Gmail Translations WeatherForecast Borsa Buzz Mujaz Opera SMS Alerts SpaceGene

Market Data Networking Networking Networking Market Data Networking Business Tool Market Data Networking Networking Networking Business Tool Market Data Market Data Networking Market Data DigitalChannels

Business Tool

Business Tool DigitalChannels

Business Tool

DigitalChannels Business Tool

Networking

Europe Global Global Global Global Global Global Global Global Global Global

Global Global Global Global Global Global Global Global Global Global Global Global Global Global Global Global Global Global, Indonesia

Collaboration@ Rural Ericsson Ericsson Facebook Florin Frogtek Google Google Google Google Industrial Media International Youth Foundation KNFB LinkedIn mobiSiteGalore Samsung Samsung Syware Twitter Yahoo Yahoo Yahoo Yahoo Yahoo Yahoo Yahoo Yahoo Yahoo Indosat

Collaboration@Rural flexenclosure kirusa Facebook Florin Frogtek Gmail SMS GoogleCalendar SMS SMS Tips SMS Trader wanbee.com

Business Tool Resources Networking Business Tool Business Tool Networking Business Tool Mentorship DigitalChannels Networking DigitalChannels

Business Tool Resources Resources Marketing

JobMatch knfb Reading LinkedIn mobiSiteGalore O3igo SevenNetworks mEnable Twitter Answers Calendar Finance Local Mail Messenger News Search Weather mig33

Resources Business Tool Networking DigitalChannels Networking Networking Business Tool Networking Resources Business Tool Market Data Business Tool Networking Networking Market Data Market Data Networking

Resources Marketing Marketing

Marketing Business Tool

Marketing Business Tool Marketing

Business Tool DigitalChannels

India India India India

India India India India India India India India India India India, South America

Altruist BASIX Canvas M. enableM Intuit Technology Services MIT MIT Nokia Nokia Omidyar Network oodle Ossian Vinfinet Technologies Voice Tap Ericsson

Altruist Sub-K Canvas M. enableM

Networking Business Tool Resources Mentorship

Business Tool

Intuit Assured Labour Celedu dealsandyou.Com Quikr Verse oodle Ossian Kisan Raja Voice Tap Ericsson MobileAuction

Market Data Resources Mentorship DigitalChannels DigitalChannels DigitalChannels DigitalChannels

Business Tool Marketing Marketing Marketing Marketing

Mentorship DigitalChannels

Business Tool Marketing

Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia

Axis 0.Facebook.Com Axis Axis Facebook& Twitter Axis ConferenceCalling Axis Gmail SMS Bandung Venture Ngaturduit.Com Bandung Venture Tokobagus ChangeCorp eLife Suite East Venture Tokopedia Esia Esia Email Esia EsiaKompas Esia EsiaVivanews Esia JoP Flexi Facebook,Twitter, Yahoo,Esia Chat Flexi Flexi Facebookand Twitter Flexi Flexi Kaskus Flexi FlexiCANTIK Flexi FlexiMedia Flexi Gmail, YmailSMS Flexi SMS Alerts Flexi SMS mBanking Flexi SMSYellowpages Flexi SPSI Foundation for Social Change SmartWoman Google Google VoiceSMS Grameen Foundation AppLab Indosat dompetku Indosat i-Buzz Indosat i-Kamus Indosat i-Menu *123# Indosat IndosatFacebook andTwitter

Networking Networking Networking Networking Business Tool DigitalChannels Mentorship DigitalChannels Networking Resources Market Data Resources Networking Networking Networking Mentorship Market Data Networking Business Tool Resources Resources Mentorship Business Tool Mentorship Business Tool Market Data Business Tool Business Tool Networking

DigitalChannels Business Tool Business Tool Market Data Marketing Marketing Business Tool

Marketing DigitalChannels DigitalChannels

Business Tool

Marketing

Resources DigitalChannels

Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Iraq Israel

Kenya Kenya Malaysia Malaysia Malaysia MENA Mexico Mexico Mexico Morocco

Indosat Indosat Investidea MerahPutih Inc M-Stars Poploud Smartfren Smartfren Telkomsel Telkomsel Telkomsel Telkomsel Telkomsel Telkomsel Telkomsel Telkomsel Telkomsel Urban Planet Mobile Waze XL XL XL XL XL MercyCorps Hooja Airtel/ MasterCard/ Standard Chartered Bank Safaricomm Alcatel-Lucen Alcatel-Lucen CWorksMobile Mobile Bananas MIT MIT MIT Employment for Education

i-Stock NokiaMessaging BisTip Lintas.me Peoples Media Poploud ConferenceCalling Uangku City Life Google SMSTranslator Locati onbasedServices NokiaMessaging Petasiaga SMS Alerts SMSBroadcasti ng SMS Mailing List YoYo Urban PlanetMobile Waze Cuaps Funbook Ngobrol XL e-Buddy XL Facebookand Twitter WomenPeacebuilders Hooja

Market Data Networking Resources Networking Market Data Networking Networking Business Tool Business Tool Business Tool Business Tool Networking Business Tool Networking Networking Business Tool Business Tool Business Tool Networking Networking Networking Networking Networking Networking Business Tool

Resources Resources Business Tool Marketing

Marketing Marketing Marketing Marketing Marketing Marketing Marketing Marketing Marketing DigitalChannels

Airtel Card M-Pesa eHomem@kers Salaam Wanita Cworks MobileBananas Fellows Forum Fighti ngFarmers Hammock-Mobile EFE

DigitalChannels Business Tool Mentorship DigitalChannels Business Tool

Resources Networking

Networking Networking Resources Resources

Market Data

Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria Nigeria, Indonesia

3WC Airtel Airtel

Esoko Etisalat Etisalat Etisalat Glo Glo Glo Glo Glo Glo Google MTN MTN MTN MTN MTN MTN Starcomms Starcomms Starcomms Starcomms Starcomms Starcomms Visafone Visafone Nokia

3WC AirtelFacebook ConferenceCalling Fax SMS DirectoryService SMS2Email Esoko DotMe EtisalatFacebook SMS Alerts Frenszo Glo Direct Glo Facebook Google SMSChat Magic Plus Voice AlertService SMS Search ConferenceCalling Google SMS MTNEye Opera Pulse Yello Pages AfriChat ConferenceCalling Gmail SMS Job Search SMS Alerts SMS2Email SMS Alerts VisafoneFacebook Nokia Life Tools

Market Data Networking Networking Business Tool Resources Networking Market Data Networking Networking Networking Web Access Networking Networking Market Data Market Data Market Data Networking Market Data Business Tool DigitalChannels Networking Marketing Networking Networking Networking Resources Market Data Networking Networking Market Data

Marketing DigitalChannels Business Tool Marketing Business Tool

DigitalChannels

DigitalChannels Marketing Business Tool Resources Business Tool DigitalChannels

Resources Marketing Business Tool Business Tool

Business Tool DigitalChannels Business Tool

Palestine South Africa South America South America South Korea

Uganda Uganda USA Venezuela

SoukTel Mixt DataDyne MIT Samsung Bill & Melinda Gates Foundation Google MIT 212

SoukTel Mixt DataDyne m-UnitedVillages iconlab

Resources Networking Market Data DigitalChannels Marketing

Business Tool DigitalChannels

MobileMoney Baraza m-Logistics 212.com

Business Tool Business Tool Resources Business Tool

Mentorship Business Tool