Mobile VAS: Beyond the world of Infotainment
An Indian Contrast

Amit Mehta
Head Sales & Marketing,
Tata Consultancy Services,
a.mehta@tcs.com
Mobile Phones are the computers of the Developing World




                                              Mobile Phone is the most
                                              popular device for connecting to
                                              the digital world

                                              Affordable, ease of use and
                                              voice interactivity makes mobile
                                              phones more attractive for
                                              connecting to the digital world.




            India
Current VAS Landscape: Limited to Entertainment Needs - ABCD


                                         Current Market Scenario
    Astrology           Ringtones



                        Wallpapers


    Bollywood             Jokes


                         Games


     Cricket              Music


                           Score


    Devotional
Future Landscape: Beyond Entertainment Needs-Beyond ABCD



                                                                     Future Market Scenario
                          Entertainment

                                              Community
      G2C Services




                                                  Business
  Utilities




                                          Livelihood
              Financial

                          Information



               Entertainment is only aspect of an individual’s needs. Other needs like Business,
               Entertainment is only aspect of an individual’s needs. Other needs like Business,
                  Information, Financial, Livelihood etc are equally important, if not more.
                   Information, Financial, Livelihood etc are equally important, if not more.
Replication of Business Models/Trends: From Internet to Mobile


                                              Compelling & Interactive
                                             Applications will find more
                                          acceptance. Platform will be open
                                                  to third parties.
                Ad-based                                                                Site Traffic
       Pay per click models of the                                             Revenues will depend upon the
       Web will evolve to pay per                                                usage of WAP sites, Voice
       impressions eg Hyperlinked                                                       portals, etc
        advertisements with SMS




                UG Content                 The game will be tilted on the              M-Commerce
     Just like on the internet, content
    will be mostly free. User Generated     side of volume rather than          E-Commerce will pave the way
                                                                              for M-Commerce, M-Auctions, etc
         content will rule the roost.
                                          margin. Rural markets will be the
                                                     catalysts.
Implication for Operators & Consumers


                Consumers                                           Operators
 •Wants to use the mobile phone for multiple        •Enhance adoption of VAS by offering
  things-not just limited to Entertainment          profile based applications
  and communication.
                                                    •Provide means to interact in voice and
 •Seeks Vernacular Interactivity and Ease of        regional dialect for any application
  use as more and more people from the
                                                    •Open the Platform to 3rd Parties for
  rural areas are taking onto it in a big way
                                                    building compelling applications in a short
 •Wants the mobile to solve all his day to day      time
  digital needs-as a business tool, utility tool,
  livelihood    tool,    enabling      financial    •Enable Location based utilities related to
  transaction etc                                   the context of requirement

 •Enterprises as a Consumer wants security,         •Be open to flexible non-traditional business
  seamless system connectivity and efficiency       models to succeed in the emerging rural
  improvisation via mobile phones                   markets
Our Thought Process and Findings

              Similarity Across Different Emerging Markets
Use Case: A day in the life of a Common Man –
Entertainment is only one of the many needs

               6 AM – 10 AM                         10 AM – 2 PM

 •News Update & Alerts                       •Scheduler/Reminder for work related
                                              tasks
 •Traffic Update/Train or Bus Timings
                                             •Banking and Transaction related tasks
 • Transactions to reach the
  Workplace                                  •Updates on stock market, jobs etc.
                                             •Security of home and kids

               2 PM – 6 PM                          6 PM – 10 PM
   •Traffic Update/Train or Bus Timings to
    reach back home                             •Music, Trivia
   •Transactions to reach back home             •Sports
   •Reminder & Scheduler setting for next       •Special Occasions Reminder
    day
   •Pay Utility bills
Mobile Content Demands in Emerging Markets:
Contrast between India and Uganda

 Emerging markets contain 75% of the world’s subscribers today, and—given the difference in
 growth rates between emerging and mature markets (i.e., 11.8% versus 3.3% per year, respectively,

 in 2008)—this number will grow to 79% by 2015.                                        Source: McKinsey Research


 Users Current M-Content Requirements: India and Uganda
 1. Contacting people in emergencies                        5. News local and International
 2. Keeping in touch with friends and family                6. Education & Training opportunities
 3. Finding medical experts                                 7. Entertainment
 4. Prevention and treatment of illness                     8. Family planning, reproductive health

             India – Priority Content Type                      Uganda – Priority Content Type
 1.     Games                                       1.    Airtime transfer
 2.     Download Ringtones                          2.    Games
 3.     Download Music                              3.    News and Sports

      India – Top Ranking Services for Future Use        Uganda – Top Ranking Services for Future Use
 1.     Listening or Downloading Music              1.    Advice line on healthcare & healthcare products
 2.     Exam Results                                2.    Finding jobs – advertise your CV
 3.     Watching TV/ Videos & Downloading Videos    3.    Watching TV and Sharing pictures
 4.     Birthday Greetings                          4.    News headlines and clippings
                                                                                                     Source: Ericsson
Key VAS Drivers : Contrast between India and
Developed Markets

                  India – ABCD of VAS                      Developed Market- ABCD of VAS
 1.       Astrology                                 1.   Adult Content
 2.       Bollywood                                 2.   Blogging (Social Networking)
 3.       Cricket                                   3.   Chat (Text/Voice/Video)
 4.       Devotional                                4.   Dating




                   Source: eTechnology Group@IMRB

      Revenue Distribution : India                   Revenue Distribution: Developed Markets




                                                                                          Source: Company Research
Our Innovative Initiatives


        Enterprise enabled VAS               Security as a VAS

                                                 Homeland
                                                  Security
                                 Emergency                   Surveillance
                                  Services                   Application




                                                                 Device &
                                  Security                       Data Level
                                   Alerts                         Security
                                                 Remote
                                                 Security
                                                Monitoring
Enterprise VAS to Enterprise Enabled VAS – Service
Paradigm Shift




     Traditional Enterprise VAS Solutions                         Enterprise enabled VAS Solutions

  •Operator Driven                                              • Enterprise Driven
  •Enterprise Neutral                                           • Operator Neutral
                                               Paradigm Shift
                                                                • Co-created linkages with ecosystem
  •Disintegrated linkages with ecosystem
                                                                • End to End Ecosystem operation
  •Not Value added service in its true sense

   New business model that can revolutionize the entire concept of Enterprise VAS
   TCS to be solution provider
   Partner with enterprises on a revenue-share model
   Complete infrastructure enablement
THANK YOU
  “Discussions”

TCS Represented at The Mobile VAS SUMMIT 2009 by Virtue Insight

  • 1.
    Mobile VAS: Beyondthe world of Infotainment An Indian Contrast Amit Mehta Head Sales & Marketing, Tata Consultancy Services, a.mehta@tcs.com
  • 2.
    Mobile Phones arethe computers of the Developing World Mobile Phone is the most popular device for connecting to the digital world Affordable, ease of use and voice interactivity makes mobile phones more attractive for connecting to the digital world. India
  • 3.
    Current VAS Landscape:Limited to Entertainment Needs - ABCD Current Market Scenario Astrology Ringtones Wallpapers Bollywood Jokes Games Cricket Music Score Devotional
  • 4.
    Future Landscape: BeyondEntertainment Needs-Beyond ABCD Future Market Scenario Entertainment Community G2C Services Business Utilities Livelihood Financial Information Entertainment is only aspect of an individual’s needs. Other needs like Business, Entertainment is only aspect of an individual’s needs. Other needs like Business, Information, Financial, Livelihood etc are equally important, if not more. Information, Financial, Livelihood etc are equally important, if not more.
  • 5.
    Replication of BusinessModels/Trends: From Internet to Mobile Compelling & Interactive Applications will find more acceptance. Platform will be open to third parties. Ad-based Site Traffic Pay per click models of the Revenues will depend upon the Web will evolve to pay per usage of WAP sites, Voice impressions eg Hyperlinked portals, etc advertisements with SMS UG Content The game will be tilted on the M-Commerce Just like on the internet, content will be mostly free. User Generated side of volume rather than E-Commerce will pave the way for M-Commerce, M-Auctions, etc content will rule the roost. margin. Rural markets will be the catalysts.
  • 6.
    Implication for Operators& Consumers Consumers Operators •Wants to use the mobile phone for multiple •Enhance adoption of VAS by offering things-not just limited to Entertainment profile based applications and communication. •Provide means to interact in voice and •Seeks Vernacular Interactivity and Ease of regional dialect for any application use as more and more people from the •Open the Platform to 3rd Parties for rural areas are taking onto it in a big way building compelling applications in a short •Wants the mobile to solve all his day to day time digital needs-as a business tool, utility tool, livelihood tool, enabling financial •Enable Location based utilities related to transaction etc the context of requirement •Enterprises as a Consumer wants security, •Be open to flexible non-traditional business seamless system connectivity and efficiency models to succeed in the emerging rural improvisation via mobile phones markets
  • 7.
    Our Thought Processand Findings Similarity Across Different Emerging Markets
  • 8.
    Use Case: Aday in the life of a Common Man – Entertainment is only one of the many needs 6 AM – 10 AM 10 AM – 2 PM •News Update & Alerts •Scheduler/Reminder for work related tasks •Traffic Update/Train or Bus Timings •Banking and Transaction related tasks • Transactions to reach the Workplace •Updates on stock market, jobs etc. •Security of home and kids 2 PM – 6 PM 6 PM – 10 PM •Traffic Update/Train or Bus Timings to reach back home •Music, Trivia •Transactions to reach back home •Sports •Reminder & Scheduler setting for next •Special Occasions Reminder day •Pay Utility bills
  • 9.
    Mobile Content Demandsin Emerging Markets: Contrast between India and Uganda Emerging markets contain 75% of the world’s subscribers today, and—given the difference in growth rates between emerging and mature markets (i.e., 11.8% versus 3.3% per year, respectively, in 2008)—this number will grow to 79% by 2015. Source: McKinsey Research Users Current M-Content Requirements: India and Uganda 1. Contacting people in emergencies 5. News local and International 2. Keeping in touch with friends and family 6. Education & Training opportunities 3. Finding medical experts 7. Entertainment 4. Prevention and treatment of illness 8. Family planning, reproductive health India – Priority Content Type Uganda – Priority Content Type 1. Games 1. Airtime transfer 2. Download Ringtones 2. Games 3. Download Music 3. News and Sports India – Top Ranking Services for Future Use Uganda – Top Ranking Services for Future Use 1. Listening or Downloading Music 1. Advice line on healthcare & healthcare products 2. Exam Results 2. Finding jobs – advertise your CV 3. Watching TV/ Videos & Downloading Videos 3. Watching TV and Sharing pictures 4. Birthday Greetings 4. News headlines and clippings Source: Ericsson
  • 10.
    Key VAS Drivers: Contrast between India and Developed Markets India – ABCD of VAS Developed Market- ABCD of VAS 1. Astrology 1. Adult Content 2. Bollywood 2. Blogging (Social Networking) 3. Cricket 3. Chat (Text/Voice/Video) 4. Devotional 4. Dating Source: eTechnology Group@IMRB Revenue Distribution : India Revenue Distribution: Developed Markets Source: Company Research
  • 11.
    Our Innovative Initiatives Enterprise enabled VAS Security as a VAS Homeland Security Emergency Surveillance Services Application Device & Security Data Level Alerts Security Remote Security Monitoring
  • 12.
    Enterprise VAS toEnterprise Enabled VAS – Service Paradigm Shift Traditional Enterprise VAS Solutions Enterprise enabled VAS Solutions •Operator Driven • Enterprise Driven •Enterprise Neutral • Operator Neutral Paradigm Shift • Co-created linkages with ecosystem •Disintegrated linkages with ecosystem • End to End Ecosystem operation •Not Value added service in its true sense New business model that can revolutionize the entire concept of Enterprise VAS TCS to be solution provider Partner with enterprises on a revenue-share model Complete infrastructure enablement
  • 13.
    THANK YOU “Discussions”