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TRAI Consultation Paper on MVAS

TRAI Consultation Paper on MVAS



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Published by mixedbag
A consultation paper on the Mobile Value Added Services / Mobile Data Services in India.

Consultation paper gives and overview of the industry and prevailing norms.

It also raises some issues for discussion with companies operating in the MVAS space
A consultation paper on the Mobile Value Added Services / Mobile Data Services in India.

Consultation paper gives and overview of the industry and prevailing norms.

It also raises some issues for discussion with companies operating in the MVAS space

More info:

Published by: mixedbag on Jun 18, 2008
Copyright:Attribution Non-commercial


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Consultation Paper No. 12/2008
Telecom Regulatory Authority of India
Consultation PaperonGrowth of Value Added Services and Regulatory Issues
May, 2008
Telecom Regulatory Authority of India
Mahanagar Door Sanchar Bhawan, J.L. Nehru Marg, (old Minto Road)New Delhi – 110 002
In the 1990s, the introduction of mobile phone and Internet hasdemonstrated that how the Network can be used to create new massmarket products and services that can change the way people think andtransact. With the rapid expansion of mobile phones, tele-density andNext Generation Network (NGN) services many more such novelties are instore for Indian population with mobile phone services and broadbandservices at the centre of innovation. Telecommunications hadtraditionally been a voice communication service. The services todayhave moved beyond their fundamental role of voice communications to aspectrum of non-core services, which in telecommunication parlance iscalled Value Added Services (VAS). In short, all services beyond basicvoice calls and fax transmissions come under the category of VAS or alsocalled enhanced services. In simple terms, Value Added Services addvalue to service, enabling the subscriber to use the telephone,particularly the mobile phone or any end user terminal device for a hostof purposes like sending short messages, pictures, play games, listen tomusic, read news headlines, astrology, get flight information, surf Internet and mobile banking including mobile payments. In times tocome people will buy mobile phones or any end user terminal device not just to remain connected but to express themselves in a variety of ways.2. Value Added Services are provided either directly by the telecomoperators themselves or by a third party Value Added Service Provider(VASP). VASP connects to the core equipment of telecom operatorsthrough inter-working units using protocols like short message peer-to-peer protocol (SMPP), connecting either directly to the short messageservice center (SMSC) or to a messaging gateway that allows the telecomoperators to have control of the content.3. Value Added Services have matured globally and form aconsiderable portion of the revenues. People are now focusing on mobileentertainment, mobile-commerce, location based services and new
enhanced services in next generation network (NGN) environment. InIndia the revenue (estimated) from mobile Value Added Services is over10 to 14% of the total revenue of mobile telecom service providers. TheValue Added Services have great revenue potential. The mobile revenuethrough Value Added Services is expected to reach beyond 30% of themobile telecom service provider’s revenue in the next 5-7 years asrevealed in various studies/position papers. Today SMS constitutesmajor portion of the VAS revenue. While entertainment service would bepopular with the consumers, there remains a scope for utility basedservices like location information, mobile commerce (M-Commerce) formobile transactions etc.4. For the telecom operators, success of Value Added Service isimportant for their growth. Introduction of calling party pays (CPP)regime and gradual reduction in call rates are two main factors that ledto the exponential growth of mobile telephone services. The serviceproviders will shift their focus from subscriber base expansion to ValueAdded Services, as it has potential to generate good revenue for thetelecom operators and contribute to the overall growth of the GDP of thecountry.5. The Value Added Services industry in India is at nascent stage anddoes not have a proper process or common benchmark or code of practice. There is no coordinated effort to make the industry grow and italso lacks transparency as the consumers are not fully aware of thenuances of the services. But considering the market potential for valueadded services in the coming years and the multiplicity of value addedservices that the Next Generation Network (NGN) will offer, there is aneed to harmonize the licensing/regulatory framework for usheringgrowth in all the segments of the value added service viz contentdevelopment, technology platform, content aggregation including copyright protection etc. There is also a need to facilitate provision of valueadded services directly by the content aggregators/value added service

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