Lot Of Scope For Mobile Value Added Services growth in India

India’s current Mobile Value Added Services (MVAS) industry has an estimated size of Rs.12, 200 crores. The Indian MVAS industry derives its revenues majorly from the top five to six products such as game based applications, music downloads, etc. These continue to form close to 80% of VAS revenues, and have become easily replicable. The other types of services such as governance, education, and commerce constitute only 20-25% of VAS revenues, leaving large scope for growth. A study on Indian MVAS industry by Deloitte hopes that MVAS has the potential to achieve digital empowerment which would help bridge the digital divide and foster inclusive growth in India. Such MVAS, which seek to digitally empower citizens by providing access to essential information and services, and foster inclusive growth, have been classified as Utility MVAS, by the Deloitte report.
According to Mr. Sandip Biswas, Director, Deloitte in India, “The Indian MVAS industry is estimated to grow to Rs 48,200 crores by 2015 from the current estimated size of Rs. 12,200 crores. The next wave of growth in subscriptions will come from semi-urban and rural areas. Today the penetration of mobile phones in urban areas is already ~ 100% while in rural areas it is only ~23%”.  
“Non-voice revenues currently constitute about ~10% of revenues of Indian telecom operators. A comparison with other countries indicates an average of ~23%, providing large scope for growth of MVAS in India” he added.

The reach and penetration of mobile phones can ensure the delivery of a large number of services in a cost effective, fast and seamless manner even without physical access, as is seen from such initiatives around the world.
The key drivers for Utility MVAS include: (1) Government mandate for inclusive growth (2) Increasing mobile phone, and network penetration (3) Need for differentiation among telecom operators and device manufacturers (4) Increasing consumer demand and awareness, even in non-urban areas (5) Business need of service providers such as hospitals and banks (6) Automation due to Information and Communications Technology (ICT).
While the opportunities are tremendous, given the mobile phone’s growing reach and the advancement of technology including the foray of 3G, there are plenty of challenges that face the Utility MVAS space today. These challenges result from non-fulfillment of the critical success factors for industry growth: (i) Policy Framework (ii) Support Infrastructure (iii) High Equilibrium Ecosystem. While the policy framework sets boundary and gives direction, the support infrastructure provides the critical base required for the ecosystem to be built.
Certain action needs to be taken by all players in the Utility MVAS value chain / ecosystem to meet the numerous challenges these services face and ensure the uptake of such services in India.  In order for the success of Utility MVAS, it is imperative that the government / regulatory authorities initiate by laying down a vision, and set of guidelines to provide the industry with the direction. Infact, a phase-wise implementation approach, spread across Initiation, Prioritization and Deployment could prove to be the optimal approach for India. It is only a matter of the government and the industry coming together to create a win-win situation for the industry and the consumers. source

President launches scheme for MVAS and IT related skills for women Self Help Group

A book 'Sanchar Shakti' on the scheme specially designed by the National Institute of Design was released byTelecom Minister Kapil Sibal and presented to the President, marking the eve of International Women’s Day.

In her address on the occasion, the President said,"real development cannot take root if it bypasses women, who represent the very pivot around which social change takes shape. As we make progress on gender mainstreaming, more and more women will become full partners in many activities of the Nation and society." Ms Patil said that with the launch of this scheme, rural women will become both users and enablers of ICT service with the launch of this scheme.

Under the scheme, Mobile Value Added Services are being designed to provide a variety of useful information to women about health, social issues, and government schemes, as also livelihood related inputs and training over their mobile phones, she said.

It is intended that while the targeted group will benefit through improved skills and livelihoods, the overall rural community will get access to facilities such as locally available mobile repair and solar mobile charging centres.

"Communication technology has proved very useful for exchange of best practices, and for providing a platform for exchange of information on common problems. Women's Self Help Groups (SHGs) can also look at linking with each other through ICT," she added.

Welcoming the President on the occasion, Mr Sibal said," ICT is the new age highway, which once laid, the traffic and branches of the same would spring up on its own need basis." Mr Sibal said that this e-connectivity to rural enclaves would unleash the creative spirit of the market forces and will serve as entry point to every wave of ICT revolution.

This project is ‘inclusive’ in nature as the participants include SHGs, mobile service providers, handset and modem manufacturers, mobile VAS providers, NABARD, Ministry of Rural Development and Non Government Organisations (NGOs).

The scheme would utilise core competencies of the partners in a collaborative fashion, the Minister added.

Speaking on the occasion, Minister of state for Communications and IT, Sachin Pilot said,"ICT has to play an important role in taking to rural women the benefits of the schemes and policies meant for them." He underlined the significance of the scheme which lies in the fact that the benefits of ICT revolution reaches out to women who comprise nearly half of our population.source