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Friday, March 18, 2011

MVAS to get 4 times in next 4 yrs

The Rs 12,200 crore mobile value added services (MVAS) market is set to quadruple in four years to Rs 48,200 crore, said a study conducted by independent consultancy, Deloitte.

A major part of this growth will accrue from rural and semi urban areas where demand for MVAS will outstrip urban demand.

MVAS include gaming applications, music downloads, video clips, utility services such as weather forecasts, crop and seed varieties, local and wholesale vegetable market rates apart from education services. “The next wave of growth in subscriptions will come from semi-urban and rural areas. Today, penetration of mobile phones in urban areas is already around 100 per cent while in rural areas it is only 23 per cent,” said director of Deloitte in India, Sandip Biswas.

M-commerce including retail banking is expected to drive the increase in MVAS revenues.

“MVAS growth will be much higher in rural areas that have greater usage in health, education and agriculture based services. But, absolute numbers will be higher in urban areas where the tilt is towards entertainment,” said CEO of handygo, Praveen Rajpal. Handygo, a MVAS provider, has tied up with Idea Cellular offering live information on weather, livestock, mandi prices, fishery advisory, finance and health schemes in Maharashtra, Goa, Gujarat, Uttar Pradesh (West) and Andhra Pradesh.

Rajpal added that agro-based and education services form the bulk of MVAS usage in rural areas, driving up to 55 to 60 per cent of MVAS revenues for the telecom industry.

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