Voice is Kinng?

For millions of years, mankind lived just like the animals. Then something happened which unleashed the power of our imaginations, we learned to talk . - Stephen Hawking

For millions of years, mankind lived just

like the animals. Then something

happened which unleashed the power of

our imaginations, we learned to talk .

- Stephen Hawking

State of Current VAS Industry VAS constitutes ~7-10% of of total telecom revenue for Indian operators. Digital music (including CRBT and ringtones) constitutes 35% of VAS revenue.

VAS constitutes ~7-10% of of total telecom revenue for Indian operators.

Digital music (including CRBT and ringtones) constitutes 35% of VAS revenue.

VAS Revenue Split P2P SMS: 35% CRBT: 25% IVR : 15% Downloads: 10% SMS Subs: 5% P2A (Peer to App) SMS + Misc: 10%

P2P SMS: 35%

CRBT: 25%

IVR : 15%

Downloads: 10%

SMS Subs: 5%

P2A (Peer to App) SMS + Misc: 10%

Entities in VAS Value Chain Content/Application Owner - cos. like saregama/mauj/Rajshri who develop coyrighted content Aggregator - aggregates content like games/wallpapers/ringtones and distributes it to suit customer needs [players : mauj, hungama mobile, indiatimes mobile etc] Software developer - develops applications (like payment/games/middleware etc.) for mobile VAS [players - mchek/July systems/webaroo/affle etc] Technology Enabler - provides the platform that plugs into telco networks and acts like a bridge between aggregator and telcos [players include OnMobile, cellnext. mauj etc] Operators still dominate the revenue sharing arrangement in VAS . Of the amount paid by end users, 60-70% is kept by operator, aggregator gets 20-25% and content app/owner gets 10-15% of the revenue]

Content/Application Owner - cos. like saregama/mauj/Rajshri who develop coyrighted content

Aggregator - aggregates content like games/wallpapers/ringtones and distributes it to suit customer needs [players : mauj, hungama mobile, indiatimes mobile etc]

Software developer - develops applications (like payment/games/middleware etc.) for mobile VAS [players - mchek/July systems/webaroo/affle etc]

Technology Enabler - provides the platform that plugs into telco networks and acts like a bridge between aggregator and telcos [players include OnMobile, cellnext. mauj etc]

Operators still dominate the revenue sharing arrangement in VAS .

Of the amount paid by end users, 60-70% is kept by operator, aggregator gets 20-25% and content app/owner gets 10-15% of the revenue]

Entities in VAS Value Chain..

VAS Portfolio

Perspectives..Numbers Prepaid connection comprise ~85% of total subscriber base Almost half of Indians use ULCH (Ultra Low Cost Handsets) 30% of mobile subscribers in India have opted for caller tune services

Prepaid connection comprise ~85% of total subscriber base

Almost half of Indians use ULCH (Ultra Low Cost Handsets)

30% of mobile subscribers in India have opted for caller tune services

More Perspectives/Numbers.. Approx 60% of mobile content downloaded in South India is in local languages 50% of all prepaid mobile phones have less than Rs. 40 balance at any point of time ~45% of the target population cannot afford to pay much for VAS products

Approx 60% of mobile content downloaded in South India is in local languages

50% of all prepaid mobile phones have less than Rs. 40 balance at any point of time

~45% of the target population cannot afford to pay much for VAS products

Challenges Sliding ARPUs BoP segment Not comfortable with SMS English isn’t the most prominent language. Multiple dialects

Sliding ARPUs

BoP segment

Not comfortable with SMS

English isn’t the most prominent language.

Multiple dialects

VAS Success Strategy Sachet Pricing [E.g.: 10 Rs. Recharge Coupon.] Bundling [E.g: Virgin:MySpace, Spice Mobile: ibibo, Email2SMS; LG: RockeTalk, ]

Sachet Pricing [E.g.: 10 Rs. Recharge Coupon.]

Bundling [E.g: Virgin:MySpace, Spice Mobile: ibibo, Email2SMS; LG: RockeTalk, ]

VAS-tu Shastra.. Reuters Market Light - a short messaging service costing 60 rupees ($1.50) a month. 100,000 three- month subscriptions Nano Ganesh Priced between Rs.560 and Rs.1700, about 5,000 farmers are using the application. Nokia LifeTools Local Information on seeds/crops etc Sends subscribers an English word each day, explaining how it’s pronounced and what it means in the user’s native language. Each of these packages could cost between Rs 25 and Rs 50 a month

Reuters Market Light - a short messaging service costing 60 rupees ($1.50) a month.

100,000 three- month subscriptions

Nano Ganesh

Priced between Rs.560 and Rs.1700, about 5,000 farmers are using the application.

Nokia LifeTools

Local Information on seeds/crops etc

Sends subscribers an English word each day, explaining how it’s pronounced and what it means in the user’s native language.

Each of these packages could cost between Rs 25 and Rs 50 a month

Nascent Market.. Local Search Airtel receives 500,000 queries a month. BPL’s Mumbai search receives 800 local queries a day 3G Mirage Will accelerate Mobile Internet VAS Operators/MVNOs will drive the growth.

Local Search

Airtel receives 500,000 queries a month.

BPL’s Mumbai search receives 800 local queries a day

3G Mirage

Will accelerate Mobile Internet

VAS Operators/MVNOs will drive the growth.

Is Voice the Kinng? VAS is currently limited to urban area primarily driven by entertainment content. 30% of New Mobile Users from Rural India [Q2 2008 Report] Mobile handsets costing less than $50 account for 62 per cent of all imported units.

VAS is currently limited to

urban area primarily

driven by entertainment

content.

30% of New Mobile Users from Rural India [Q2 2008 Report]

Mobile handsets costing less than $50 account for 62 per cent of all imported units.

Is Voice the Kingg? SMS, MMS, CRBT, and GPRS would fail Regional/Rural IVR seen as a major opportunity But where is the compelling content? Competition : SMS?

SMS, MMS, CRBT, and GPRS would fail

Regional/Rural IVR seen as a major opportunity

But where is the compelling content?

Competition : SMS?

Voice – VAS Challenges Opportunity: Rural, the untapped market. Rural Services : E.g.: Mobile Payments (cashnxt). Challenge: Voice Recognition – Not a single engine understands different dialects.

Opportunity: Rural, the untapped market.

Rural Services : E.g.: Mobile Payments (cashnxt).

Challenge: Voice Recognition – Not a single engine understands different dialects.

Thank You!

Thank You!

Source PluGGd.in Emergic BDA

PluGGd.in

Emergic

BDA