1) The document discusses key trends in the telecommunications industry in India such as rising mobile subscriber base and growth of mobile value-added services (VAS). 2) It describes the evolving ecosystem for mobile VAS in India and how revenue is shared between different players like content providers, VAS aggregators, and mobile operators. 3) Several use cases are presented showing how services could integrate across networks and devices to provide personalized experiences for users through features like electronic programming guides, alerts, and customized content.

1. 1

2. Agenda
Executive Summary
Executive Summary
Agenda
Key drivers and trends
Current state of telecommunications and VAS in India
A peek into the future; how services evolution will
help break commoditization through VAS
Preeti Anand, 2010 2

3. From the information age to the connected age, technological changes
have had a profound influence on how we communicate
Explosion of
broadband,
Internet, Mobile
Increased usage
Plethora of new
of voice, data and
devices
video services
Preeti Anand, 2010 3

4. Traditional providers too have expanded their service offering set
CPE
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5. According to Gartner “By 2012, half of 20 largest carriers will establish new
lines of business outside telecom, such as entertainment, advertising &
managed services “
Telecom, Media
and IT
convergence
Increased
competition
Device Telcos from even non-
convergence establish new traditional
lines of players
business in
advertising,
entertainment
etc.
VAS has become the flywheel of telecom growth and will constitute a large chunk of revenue for operators in
the years to come
Preeti Anand, 2010 5

6. Agenda
Executive Summary
Executive Summary
Agenda
Key drivers and trends
Current state of telecommunications and VAS in India
A peek into the future; how services evolution will
help break commoditization through VAS
Preeti Anand, 2010 6

7. Agenda
India has emerged as one of the fastest growing mobile market in the
Executive Summary
Executive Summary
world, which in turn is driving the mobile VAS market
Mobile Subscriber base in India * Estimated growth in Mobile Subscribers in India **
Source: **eMarketer Report: BRIC Mobile: Emerging Markets Mature
Source: *TRAI report
Growth of mobile VAS in India
Mobile VAS services distribution in India Year 2007 2008 2009 2010
(by 2008 revenue) *** (expected)
7% 3%
Market share (%) of 7 9 10 12
mVAS
15%
40%
Market value of 927 1375 2325 3930
mVAS (USD Mn)
Services P2P SMS CRBT Internet mCommerc
contributing to max Access, e,
mVAS revenue Email, IVR Infotainme
based nt
35% services
P2P Ringtone Download P2A & A2P Game & Data Others Source: *** IMRB Research
Preeti Anand, 2010 7

8. Telecommunication industry in India is moving from capital-intensive,
technology-focused model to a user-centric service-delivery model
Voice
commoditization;
Low differentiation
Increased
competition
Falling ARPUs
Telcos from other
provide value telecom players
added
services
Next gen SDP should implement new business models across converging networks, innovate voice, data, and
video services faster and more effectively
Preeti Anand, 2010 8

9. A variety of new business models have emerged in the global landscape
that will pose a challenge to traditional carrier dominant model
Device dominance model
•Device vendor (RIM, Apple) controls the
device, platform and the content and
hence takes a dominant share of revenue
•Carrier gets user access charges and in
some cases, part of the service revenues
Carrier dominance model
•Users visit the portal screen of the carrier and Platform dominance model
download/use services from the portal (also called •Platform (Symbian, Android) access
the walled garden) across multiple devices
• Carrier control all entities of the value chain of the •Carrier gets the user access charges but
business model the service revenue is shared between the
•Carrier gets a huge share of service revenue, plus platform owner and content partner
user access charges
Application dominance
Smart pipe model
•Application (Facebook, LinkedIn, Gmail)
access using carrier as pipe.
•Carrier gets the user access charges but
entire service revenue goes to the content
and application owner
Non-traditional telecom players like Apple, Google etc., are adopting new business models that will require
carriers to reassess their approach and service delivery
Preeti Anand, 2010 9

10. The mobile VAS market in India too has evolved into a complex ecosystem
with a lot of overlap between different entities
VAS Ecosystem * Revenue share between ecosystem partners*
Content
Request in text
format/ Server
Content provider
subscriber call
Request Managed •Revenue: 10-15%
completed
Subscriber Platform
Operator VASP
enabler
•Revenue: 20-25%
Content flow
Portal/ Mobile Operator
Aggregator •Revenue: 60-65%
Content flow
Developer/
Source: *IMRB Research Owner Mobile users
Content Developer/Application Owner
 Develop copyrighted content ; includes music labels, movie production homes, and TV channels (E.g Rajshri, Saregama)
Aggregator
 Aggregate content like games/wallpapers/ringtones and distributes it to suit customer need (E.g. Indiatimes mobile)
Platform Enabler
 Provide the platform that plugs into telco networks and acts like a bridge between aggregator and telcos (E.g. OnMobile, Mauj)
Preeti Anand, 2010 10

11. Agenda
Executive Summary
Executive Summary
Agenda
Key drivers and trends
Current state of telecommunications and VAS in India
A peek into the future; how services evolution will
help break commoditization through VAS
Preeti Anand, 2010 11

12. Device control via other platforms (Internet and phone)
Use case 1: VoD via call to IVR/SMS
Reporting &
Subscription Meta data
Service
Billing CRM
Analytics management
Transaction
Default rules engine Content management
processing engine
Service
Content delivery delivery
Email/
EPG DVR VOD
News
IVR IPTV SMS Web Interface
.......
Interface Interface Interface interface management
Delivery
GMSC network
Device
Preeti Anand, 2010 12

13. Device control via other platforms (Internet and phone)
Use case 1: VoD via call to IVR/SMS
Reporting &
Subscription Meta data
Service
Billing CRM
Analytics management
Transaction
Default rules engine Content management
processing engine
Service
Content delivery delivery
Email/
EPG DVR VOD
News
IVR IPTV SMS Web Interface
.......
Interface Interface Interface interface management
Delivery
SMSC network
Device
Preeti Anand, 2010 13

14. Integration of service and user experience
Use case 2: Electronic Programming Guide (semantics driven content display)
Reporting &
Subscription Meta data
Service
Billing CRM
Analytics management
Transaction
Default rules engine Content management
processing engine
Personalization Service
engine delivery
Content delivery
Email/
EPG DVR VOD
News
IVR IPTV SMS Web Interface
.......
Interface Interface Interface interface management
Delivery
network
Device
Preeti Anand, 2010 14

15. Integration of service and user experience
Use case 3: Incoming email/news alerts on IPTV
Reporting &
Subscription Meta data
Service
Billing CRM
Analytics management
Default rules engine
Transaction
processing engine
Content management  Timer
Service
Server sync
Content delivery delivery
Email/
EPG DVR VOD
News
IVR IPTV SMS Web Interface
.......
Interface Interface Interface interface management
Delivery
network
Device
Preeti Anand, 2010 15

16. Integration of service and user experience
Use case 4: Personalized commercials (based on demographics, preferences, location etc.)
Reporting &
Subscription Meta data
Service
Billing CRM
Analytics management
Transaction
Default rules engine Content management
processing engine
Personalization Service
Content delivery engine delivery
Campaign
EPG DVR VOD scheduler and
management
IVR IPTV SMS Web Interface
.......
Interface Interface Interface interface management
Delivery
network
Device
Preeti Anand, 2010 16

17. Integration of service and user experience
Use case 5 : Users upload videos/pictures to personal media cloud
Reporting &
Subscription Meta data
Service
Billing CRM
Analytics management
Transaction
Default rules engine Content management
processing engine
Service
Media
Content delivery cloud delivery
EPG DVR VOD Data
MMS IPTV SMS Web Interface
.......
Interface Interface Interface interface management
Delivery
network
Device
Preeti Anand, 2010 17

18. High-level view of a triple/quad play SDP
Reporting Service
Billing CRM &
Subscripti
Meta data
Leverage /enhance existing business
on managem
Analytics ent support functions
Transaction
Default rules
processing
Content Enhance business logic to handle
engine management
engine Service complex user/session information
delivery
Content delivery
Ability to support multiple content
EPG DVR VOD Data
formats and varied services
MMS IPTV SMS Web Interface
Interf Interf Interf interf .......
managem
ace ace ace ace
ent
Delivery Seamless service delivery across
network
different devices and networks
Device
Preeti Anand, 2010 18