The document discusses the growth of mobile value-added services (MVAS) in India, noting that the country has the second largest mobile subscriber base in the world and expects substantial growth driven by an increasing rural subscriber base, innovative services, and regulatory support. MVAS contributes approximately 9% of operators' revenue, with projections to rise to 12% by mid-2010, while opportunities in rural areas aim to meet connectivity and entertainment needs through various applications. The future of MVAS is anticipated to expand significantly with the introduction of 3G technology and new applications such as m-commerce and multimedia services.

1. Mobile Value Added Services in India

2. Roadmap India Mobile Telephony Market MVAS Simplified Market Size Composition of VAS Revenue Environmental Factors & Market Efforts VAS Business Model Role of VAS Current Growth & Future Potential

3. Rising Mobile Subscriber base but… Decreasing ARPU We have crossed 375 million mobile subscriber mark now and have the second largest subscriber base in the world Over 100 mn new subscribers added in 08. The overall tele-density was recorded at 30.6% at the end of September 2008. The growth of mobile market can be clearly attributed to the favorable and improved regulatory structure, declining handset prices and innovative pre paid tariff structure. With increasing competition and need for increasing the subscriber base in rural markets, the call rates and hence the ARPU are declining.

4. Definition Telecommunications industry term for “Non- Core” Services All services beyond Standard Voice Calls and Fax Transmissions Add value to the Standard Service Offering Stands alone in terms of profitability and/or stimulates incremental demand for core service(s) Can be an add-on to basic service, and as such, may be sold at a premium price.

5. MVAS Simplified To a housewife MVAS is the SMS that enables her to participate in Indian Idol To a college kid MVAS means the latest bollywood song that she downloads as her signature ringtone To a business professional MVAS stands for continuous emails received on the Blackberry To the neighborhood plumber MVAS is bread and butter as SMS he received just now contained the address of the house where he needs to make his next call. And to farmer MVAS is today’s mandi rates

7. MVAS : Growing Market Size (Rs Crore)

8. Environmental Factors driving VAS and Market Efforts driving VAS Booming Economy Personalization of digital world and digital devices Reduction in Call Rates and CPP initiation Focus on Movies and Music SMS Contests (KBC, Indian Idol) 3G VAS: With added utility to mobile phone through 3G, both subscriber base and ARPU are expected to observe phenomenal increase in the coming years

9. Govt & Associations Support IAMAI’s key mandate is to expand and enhance the online and MVAS sectors and address the issues, concerns and challenges TRAI released a Consultation Paper on Growth of MVAS and Regulatory Issues in May, 2008. In Jan 09, TRAI announced that companies offering MVAS can continue to operate without a licence. CII has formed a MVAS Task force bringing together the content providers, handset manufacturers, technology providers etc under one platform

11. VAS Business Model (Cont.) Content Enablers Content Portal/Aggregators/Developers Third Party Copy Right Owner Traditional Media Companies Technology Enablers Short Code Provider Technology Partner/ Platform Enabler

17. Current Market Size & Potential Business for us The MVAS market is expected to grow steadily at a rate of almost 70% for the next two years. MVAS currently contributes around 9% to the operator’s revenue. It is expected to increase to 12% by June 2010.

18. Rural telecom opportunity Telecom operators are seeing an immense growth potential in the rural sector both in terms of new connections & MVAS. As per market expectations, it is believed that of the next 250 million expected to go mobile; at least 100 million will come from rural areas. 72% 15 -20% Population Contribution Rural India Urban India 28% 80-85% Subscription Contribution

19. Rural MVAS market MVAS is going to address two main needs of rural consumers connectivity and entertainment Connectivity will provide Information VAS on Agriculture necessary for the farmer’s livelihood e.g. mandi rates, weather, etc. Also health, finance, job opportunities etc are potential areas. Social network platforms will enable a huge amount of information to be available to many Mobile also has the potential to evolve as a key entertainment mode considering lack of other entertainment options in rural areas. Tremendous potential if the relevant needs are identified. e.g. there is an application wherein farmers can switch on a water pump using their mobile. Also a message is sent in case the pump is being stolen

20. Future of MVAS Till now the emphasis has mostly been on Voice & SMS based MVAS With the advent of 3G the MVAS market is likely to grow to a larger extent in the near future both in terms of usage as well as new application development. Some new MVAS likely to boom in the coming years are : mCommerce (including travel, shopping, movie tickets etc.) & Mobile marketing (like Ads on mobile, including product videos) Location Based Services Multimedia Broadcast Services :Mobile TV Video calls/ conferencing VOD (Video on Demand) or Live streaming video content Some of these applications are available on the existing 2/2.5G network as well, but there are few suppliers. Slow access speed has resulted in low usage The potential of MVAS is huge in India

21. Innovative Uses of MVAS AdRBT (Ad Ring Backtone) wherein each time a person calls he/she hears an ad instead of a ring tone. Healthcare chains tying up with operators to alert patients via SMSs about their appointment date with a particular doctor or when their next dose of medicine is due. GlucoPhone: A Cellphone for Diabetics that measures blood sugar levels, records and sends results to self and others and even manages meal plans Speech recognition and biometrics applications LBS Apps: SMS sent by a tourist enables the taxi to locate him Data: Traffic policeman can retrieve entire data about an offender by simply sending an SMS

22. Technology Data/ Text Platform End User  Server  Platform Enabler (Preloaded)  End User Voice Platform End User  Server (IVRS)  Recipient  End User

23. Thank You !! Pranav Sachdeva Assistant Consultant- CRD Ma Foi Management Consultants Building No.9, Tower A, 2 nd Floor DLF Cyber City, Gurgaon- 122002 Contact No- +919811447192