Mvas Final

ACKNOWLEDGEMENT
I RAHMAN DAWLATY would take this opportunity to thank University of Mumbai for providing me an opportunity to Study on mobile value added services; this has been an enormous learning experience.
I would like to acknowledge and thank the people who made this project work possible, Prof. E.V.GIREESH for being my guide while doing this project, BMS coordinator Prof. Smita and the teaching staff of my college and librarian and other staff for providing their help as when required to complete this project.
1 Mobile Value Added Services
RAHMAN DAWLATY
CERTIFICATE
This is to certify that RAHMAN DAWLATY Student of SIES College of Arts, Science and Commerce (Nerul) has completed the project on mobile value added services in the academic Year 2009-10. The information presented in this project is accurate and original to the best of my Knowledge.
Prof. E.V.Gireesh
Project Guide
Prof. Smita R
BMS Coordinator
Dr.Minu Thomas
Principal
Declaration
I RAHMAN DAWLATY Student of Third Year BMS of SIES College of Arts, Science and Commerce (Nerul) declare that I have completed the project on mobile value
added services in the academic year 2009-10 as per
requirement of Mumbai university as a part of Bachelor in Management Studies (BMS) Programme.
The information presented in this project is accurate and original to the best of my Knowledge.
Date :
Place: Navi Mumbai :
RAHMAN DAWLATY
A PROJECT ON MOBILE VALUE ADDED SERVICES SUBMITTED BY RAHMAN DAWLATY FOR THE DEGREE OF BACHELOR OF MANGEMENT STUDIES UNIVERSITY OF MUMBAI
UNDER THE GUIDANCE OF
PROF.E.V.GIREESH
SIES COLLEGE OF ARTS, SCIENCE AND COMMERECE NERUL, NAVI MUMBAI 400706
ACADEMIC YEAR
2009-2010
Table of Content
Executive Summary The Indian Mobile Market 5-10
1.1 Introduction to Value Added ServicesMarket..5 4 Mobile Indian Mobile 1.2 Contribution of Subscribers..6
1.2.1 Pull Factors....8 1.2.2 Push Factors...9 2.0

1.0 Value Added Services Mobile Introduction Indian Mobile Market 11-30
strengthening of government presence in telephony, along with the introduction of private capital into the manufacturing of telecom equipment. Telecommunications (DoT) in 1985. A year down the line, the government also established Videsh Sanchar Nigam Limited (VSNL) for international metropolitan areas.
The pre-1990s era witnessed the evolution of telephony 2.1 Definition of MVAS...11 and the
2.1.2 Need for MVAS ..12
A defining step for the industry was the setting up of the 2.2 MVAS Categories..........................13 Department of
2.2.1 Analysis of Various Categories...14
telephony, and of MVAS16 2.2.2 Different typesMahanagar Telephone Nigam Limited (MTNL) for telephony in
2.3 Importance of MVAS ....................................17
The New Telecom Policy (NTP) 1994 proved to be a landmark step, as it the government set up the Telecom Regulatory Authority of India (TRAI) to regulate the growing telecom sector in India.
2.4 Pillars of MVAS.20 market. In 1994, allowed the entry of private telephony operators into the 2.5 MVAS in Indian Market....22
2.5.1 MVAS in Rural India.25 The year 1999 saw the launch of the NTP-99, which introduced a revenue 2.6 Future of MVAS in India ..........26
sharing system between the operators and the government. GSM services were also launched in this year, signaling the dawn of mobile telephony. the Bharat Sanchar Nigam Limited (BSNL). However, one of the most remarkable achievements of the Indian Telecom industry at the turn of the 21st century was the tremendous growth of the wireless telephony market. The telecom sector in India, since its liberalization in 1991, has registered a unique growth and today it is valued at $100bn and contributing significantly (13%) to the GDP. Globally in terms of mobile subscriptions, India is the worlds second largest wireless market after China. At the end of June 2008, the total wireless subscribers (GSM, CDMA & WLL (F)) base was 286.86 million. As a result the overall tele-density rose to 28.33% by end 2008. This Growth of the sector can be clearly attributed to the favorable and improved regulatory structure, declining handset prices and innovative pre paid tariff structure.
2.6.1 Driving Forces of MVAS....28 the establishment of The year 2000 witnessed the corporatization of DoT and
3.0
NEOMOBILE Group 3.1 Company Profile.
3.0
MVAS Ecosystem
31-33
3.1 Eco System .....31 3.2 Understanding the various entities......21 4.0 NEOMOBILE group 34-41
3.1 Company Profile ...34 3.2 Services Provided...36 3.3 Contents Provider....37 3.4 Clients Relationship........................................39 3.5 Business Cycle....40 4.0 Mobile Value Added Services Survey Report 42-76
4.1 Need for the Study.42 4.2 Limitations.42 4.2 Procedure...43 4.3 Findings..45 4.4 Conclusion..76 5.0 Bibliography
Summary
Executive Summary
Need For the Study:-
The mobile subscriber base is growing in India; India is now the 5th country in the world to have crossed the 100 million mark in subscriber base and has become the fastest growing mobile market in the world. Over the last 5 years, the telecom industry has realized the importance of MVAS and increasing competition among operators it is essential to focus on alternate revenue streams. MVAS contributes between 5-10% of the revenues of different Tele companies, thus MVAS has become an important element in the growth of mobile telephony in India that is where there is a felt need for capitalizing on the Value Added Services Market. Today the various MVAS entities are still struggling with issues such as the correct definition of MVAS, the roles and responsibilities of each entity in the value chain, revenue sharing arrangements between them and other critical issues. This report presents these key issues in detail and provides a neutral perspective to the industry. It provides a clear and precise definition of MVAS, its various categories existing in India and its marketing strategies.
Methodology:-
The report is prepared in 2 key modules- Primary research and Extensive research. Primary Research was conducted through meeting the members of MVAS companies such as Hungama, Mauj and India Times and studies of various techniques and strategies of MVAS marketing in different companies,
understanding the views of subscribers through questionnaire that was distributed among SIES College Students. Extensive research was done to understand the depth of MVAS market, detailed information was used to create a specific framework provided in the report. Information from various published resources such as Internet & Mobile Association of India and other research bodies were used to confirm the market figures and cross-check the data.
Findings:-
In the age of convergence, the major growth driver of MVAS would be the consumers desire of getting more from their mobile phone. While among the youth entertainment related services would be popular, the other consumers would also look for utility based services like location information, mobile commerce (MCommerce) for mobile transactions and local content rich services. The Current Mobile VAS industry is estimated at Rs. 9760 crore by end June 2009 and is estimated to grow steadily at 70% over the next two years to touch Rs16520 crore by end June 2010. Contribution of VAS revenue is as follow:Value Added Services P2P SMS Games CRBT/RT P2A/A2P SMS Other Contribution in Revenue 37% 5% 40% 16% 2%
MVAS contributes around 10.4 % to the operators revenue in year 2009. It is expected to increase to 12% in the next 1 year.
Mobile VAS industry in India is undergoing a lot of structural changes and is poised to grow and contribute greater revenues to the telecom industry in years to come.
Limitations: The project report is limited to the broachers of specific companies which are published in different dates.
Statistical data in report is as on the dates of broachers.
The primary research meeting was limited to the knowledge of the members of the company.
The subscriber views were limited to the questionnaire distributed.
The study of Mobile value added services was on 100 users and their feedback was on what they have experienced
1.0 Introduction Indian Mobile Market

The pre-1990s era witnessed the evolution of telephony and the strengthening of government presence in telephony, along with the introduction of private capital into the manufacturing of telecom equipment. A defining step for the industry was the setting up of the Department of Telecommunications (DoT) in 1985. A year down the line, the government also established Videsh Sanchar Nigam Limited (VSNL) for international telephony, and Mahanagar Telephone Nigam Limited (MTNL) for telephony in metropolitan areas. The New Telecom Policy (NTP) 1994 proved to be a landmark step, as it allowed the entry of private telephony operators into the market. In 1994, the government set up the Telecom Regulatory Authority of India (TRAI) to regulate the growing telecom sector in India. The year 1999 saw the launch of the NTP-99, which introduced a revenue sharing system between the operators and the government. GSM services were also launched in this year, signaling the dawn of mobile telephony.
The year 2000 witnessed the corporatization of DoT and the establishment of the Bharat Sanchar Nigam Limited (BSNL). However, one of the most remarkable achievements of the Indian Telecom industry at the turn of the 21st century was the tremendous growth of the wireless telephony market. The telecom sector in India, since its liberalization in 1991, has registered a unique growth and today it is valued at $100bn and contributing significantly (13%) to the GDP. Globally in terms of mobile subscriptions, India is the worlds second largest wireless market after China. At the end of June 2008, the total wireless subscribers (GSM, CDMA & WLL (F)) base was 286.86 million. As a result the overall tele-density rose to 28.33% by end 2008. This Growth of the sector can be clearly attributed to the favorable and improved regulatory structure, declining handset prices and innovative pre paid tariff structure 1.2 Subscribers:With increasing competition and the need for increasing the subscriber base in rural markets, the call rates are declining. This has led to decrease in ARPU.
In spite of unprecedented growth in the mobile subscriber base, the operator margins are declining quarter on quarter with a very marginal increase in Mar 08. Though the Minutes of Usage is increasing however the same is being offset by the lowering tariffs of operators. As ARPU declines, the challenge for operators is to increase revenues by differentiating their offerings and develop alternative revenue streams by offering more value added services to the existing subscribers. The decrease in average revenue can also be attributed to the structure of the Indian Mobility Market which is largely prepaid. This means that most of the subscribers added are of low usage resulting in low ARPU. In terms of market share, 92% of the subscriber base in India is on pre-paid connection, with the remaining 8% on postpaid subscriptions. This has also given rise to opportunities for generating increased revenue, through exploring potential Value Added Services (MVAS) like subscription packs of news, alerts etc and more exclusive roaming services tailored to pre-paid subscribers. From launching low-cost
handsets to bringing down the tariffs and organizing street plays to advertise, the real battle among telecom competitors is now being fought in the rural hinterland. It is believed that of the next 250 million people expected to go mobile; at least 100 million will come from rural areas.
Though the rural mobile penetration is highest in Punjab (20.69 per cent), followed by Himachal Pradesh (17.09 per cent), Kerala (10.63 per cent) and Haryana (10.20 per cent), most companies are now struggling hard in selling their products and services in the rural areas of the region. As a result, the geographical coverage of mobile telephony in India has gone up from 13 to 39 percent now. 1.2 Future Growth in the Indian Telecom Market The Indian telecom market has tremendous growth opportunities. The nations mobile subscriber base is also set to exceed 500 million connections by 2010. The growth in the telecom market is a function of two set of factors. The Demand Side Factors - referred to as the Pull factors and Supply Side Factors - referred to as the Push Factors.
1.2.1 Pull Factors 1-High Disposable Income Indias GDP with a current growth rate of 8% (2008) makes it the 2nd fastest growing economies of the world. This growth has resulted in increasing disposable income among the individual population. Therefore the young Indian population is increasingly investing more money in various entertainment and communication services thus fuelling growth of the telecom sector. 2-Mobility and Connectivity The growing need of high mobility and staying connected is the prime driver for the entire category. This is true for people from different age groups and occupation. The youth segment that comprises 30% of the total handsets market requires high mobility and connectivity and the same is true for business and other professionals. This innate need coupled with availability of handsets and connectivity at affordable price points has triggered the growth of telecom in India. 2.2.1 Push Factors 1-Investments in Telecom Industry The telecom industry has seen an estimated $8.5 billion in investment flow during 2006-07 alone, of which $550 million was in the form of foreign direct investment. All major telecom handsets manufacturers including Nokia, Samsung, Motorola and LG - have their presence in India, along with the leading global service companies and infrastructure majors, such as Vodafone, Singapore Telecom,
AT&T, Ericsson, Alcatel and Siemens. This has triggered the growth of Telecom Sector in India. 2-Gradual Progression in Telecom Sector The progression chart below depicts the major regulations and events driving the extra ordinary growth of Telecom sector from year 1999 to 2008.
In order to capitalize this opportunity of meeting the consumer needs in highly competitive market the operators have reduced the tariffs to attract consumers with low purchasing power primarily in semi urban and rural India. In fact lucrative offers like being paid for incoming calls have transformed the scenario completely. Through these changing regulations and events, the Industry players are aiming to achieve the following Acquiring new subscribers by expanding in Semi Urban and Rural India Selling more services to existing subscribers
Selling More to Existing Subscribers

This is relatively easier as compared to acquiring new customers. Also since now the new subscriptions will largely happen at the bottom of the pyramid therefore the new subscriptions will further lower the average revenue per user. In such a scenario mobile VAS sector is a potential long-term revenue stream as it will be easier to sell more to the existing customers.
2.0 Mobile Value Added Services

As we have seen, Telecommunication has moved beyond providing just basic voice calls. The mobile phone has evolved from a mere communication device to an access mode with an ability to tap a plethora of information and services available in the ecosystem. This is the reason why it is now being referred to as the Third screen, after, Television and PC.
2.1.1 Definition of MVAS

Value Added Service (VAS) in telecommunication industry refers to non-core services, the core or basic services being standard voice calls. The value added services are characterized as under: Not a form of core or basic service but adds value in total service offering. Stands alone in terms of profitability and also rouse incremental demand core or basic services Can sometimes be provided as stand alone. Do not omit core or basic service. Can be add-on to core or basic service and as such can be sold at premium price. May provide operational synergy with core or basic services.
for
A value added service may demonstrate one or more of these characteristics and not necessarily all of them. In some cases, the value added service becomes so closely integrated with the basic offering that neither the user nor the provider acknowledge or realize the difference for example is of P2P SMS. Some of the operators do not consider P2P SMS as part of their VAS revenue. For mobile telecommunication market, a simple definition of VAS would be:Mobile value-added services (VAS) are those services that are not part of the basic voice offer and are availed off separately by the end user. They are used as a tool for differentiation and allow the mobile operators to develop another stream of revenue. The nature of value added services change over time. A VAS may become commoditized and becomes so common place and widely used that it no longer provides meaningful differentiation on a relative basis
2.1.2 Need for MVAS

Over the last 5 years, the telecom industry has understood the importance of MVAS. Given the declining ARPU and increasing competition among operators its imperative to focus on alternate revenue streams. Thats where there is a felt need for capitalizing on the Value Added Services Market. The reasons for the increasing importance of MVAS can be classified as: Decrease in ARPU despite increase in MOU:
Though the subscriber base is growing at a rapid pace and has positively impacted industry revenues, operator margins also have shrunk owing to competition and lower Average Revenue per User (ARPU). As ARPU declines and voice gets commoditized, the challenge is to develop alternative revenue streams and retain customers by creating a basis for differentiation in high-churn markets. Need for differentiation: There is a greater need among the telecom operators to differentiate themselves from each other. Number of Licensees: With increasing number of licensees (98 UASL, and 37 cellular licenses) in the telecom space the average numbers of operators in many circles have increased to 5-6 operators offering more choices to the consumer. Thus the competition among the operators has increased tremendously. Therefore it is very important for them to differentiate themselves from the others. Now that voice has got commoditized these operators are using MVAS for their differentiation and marketing these services heavily for creating awareness among the consumers. Increasing need and demand from consumers: In addition to the above supply side reasons the pull effect from consumers asking for more than just basic telephony is also a key driver for MVAS services. Today most of the consumers are seeking more from their communication device apart from just mobility and desire to stay connected. 2.2 MVAS categories All the value added services address some need of the end consumer whether it is psychological, monetary or convenience. Based on the need fulfillment of the end user, we have grouped Mobile VAS into three broad categories.
Entertainment VAS
The key differentiating factor of Entertainment VAS is the mass appeal it generates. These provide entertainment for leisure time usage. These not only generate heavy volume (owing to its mass appeal) but also heavy usage. An example of these kinds of services is Jokes, Ringtones, CRBT (Caller Ring Back Tone) and games. These services continue to be popular and have been key revenue generators for the Indian mobile VAS market. Other popular Entertainment VAS driving the market are dating and chatting services. Entertainment VAS has the potential to remain a key contributor to Mobile VAS industry. To sustain the MVAS growth, it is the responsibility of the industry to keep discovering/innovating applications like CRBT (Caller Ring Back Tone) at regular intervals.
Info VAS
These services are characterized by the useful information it provides to the end user. The user interest comes in from the personal component and relevance of the content. Apart from mobile, alternate modes are available to access Information VAS like Newspaper, TV, and Internet. E.g. of Info VAS is information on tickets, news, banking account etc. They also include user request for information on other product categories like real-estate, education, stock updates. Information VAS needs to target the right person at the right time with the right content.
Mobile-Commerce VAS (Transactional services)
These are the services which involve some transaction using the mobile phone. An example of this kind of service is buying movie tickets using mobile phone or
transfer of money from one bank account to the other. These can broadly be classified in to 2 types - Mobile banking and Mobile payments. Use of mobileCommerce though in an emerging stage, many initiative have been taken in mobile Commerce space. A number of application providers are in the market with different business models. Some are focusing on Mobile payment, some on incorporating mobile Commerce into it while others on Mobile banking aspects. Mobile banking is the usage of mobile phone as a platform for banking transactions. The high penetration of mobile phones in India is the biggest driver for mobile banking in India. The Reserve Bank of India is in the process of issuing the final guidelines for mobile banking operations in India. Various banks such as ICICI, Barclays, etc, have already launched their mobile banking operations in India. A plethora of services are offered on mobile banking. In India, consumers look for value for money, which is the key for proliferation of mobile banking in India. 2.2.1 Brief analysis of different categories Entertainment VAS
Definition
These services provide entertainment for the leisure time. mass appeal
Information VAS
These are the services which provide some information to
M-commerce VAS
These are the services which involve some transaction non mobile
These services attracts useful
Current status
Entertainment vas is driving vas market both in term of volume and revenue
the end user. Information vas is M-commerce is an getting popular with different categories depending on the end user developing stage
Drivers
Industry
focuses
on Entities using
RBI guidelines is expected to give boost to M- banking
entertainment vas with mobile as new player from media and movies. E.g.:- star, yash raj coming another channel houses to deliver information is driving information vas. E.g. Stock exchange 1.) Marketing is the biggest challenge since information needs differ across different segment. 2.)Credibility of sources is another challenge, since there are alternative channels available to get information VAS
Challenge s
Currently music is the biggest component, challenges to increase the usage of other contents and services
1.) Identifying the best possible access mode is the big challenge for Mcommerce. 2.)Handset penetration and usage is the key access mode (GPRS) of M-commerce is low in India 3.) Allying security concerns
Future status
Entertainment vas is to Information vas is M-commerce has the going to vas driver for next few years going to be a key to address the needs of growing rural potential to emerge as a key VAS component once the security concern are addressed
2.2 Types of MVAS The growth of MVAS market is dependent on the various modes available to the end consumer for accessing Presently, the modes of MVAS access can be classified as:
Short Message Service (SMS) Platform SMS was the first mode introduced for accessing MVAS. MVAS market is currently dominated by SMS in terms of revenue. The SMS platform is used by telecom operators to provide a variety of services such as information services like news alerts, cricket scores, chatting services, etc Voice Platform Interactive Voice Response (IVR) system is used to deliver Voice based Value Added services to the consumers. In this system, the end user interacts with a computerized system to tap the service. The end users can select the options available on the service either through numbers on the keypad or using speech recognition system. Voice based services are offered in a variety of languages to cater to the diversified Indian population. This mode becomes more significant when dealing with the non-metros and rural India. Voice access contributes to more than one-third of the total MVAS revenue GPRS/WAP Platform GPRS currently contributes around 6-7% of the overall MVAS revenue. The high price of data access acts as a barrier towards usage of GPRS. The primary drivers for the adoption and usage of mobile internet are availability of cheap data-enabled handsets and lowering of GPRS tariff by mobile
operators. GPRS is an effective medium of accessing MVAS, but is restricted by relatively lower consumer base. Unstructured Supplementary Services Data (USSD) Platform
USSD is a session based mechanism for delivery of service to the end consumer. The services are delivered through a continuous interactive session, unlike SMS where the interaction needs to broken to separate messages. USSD presently contributes around 2-3% of the MVAS revenues, but the industry holds a positive perspective towards its adoption as a means of accessing MVAS. Multimedia Message Service (MMS) Platform MMS allows sending messages that include sending multimedia objects such as images, audio and video along with text messages. MMS market in India is still in a growing stage. Content market in India would get a boost with the emergence of MMS. Presently, the growth of this segment is restrained by high-price and limited availability of MMS handsets in India. The current MVAS market is estimated at Rs 5930 crore as on June 2008. The market is currently dominated by SMS as the mode of accessing MVAS. 2.3 Importance of MVAS Perceived Value - Perceived value of a MVAS depends on perceived rather than the actual utility to the end user. When the immediate benefit may not be clear to the subscriber, the value that a subscriber derives from it largely depends on the marketing efforts and persona related to the service. The value is gauged more from the intangible benefits derived from the service like emotional benefits. A good example of a MVAS with high perceived value is CRBT (Caller Ring Back Tone).
Practical Value - Practical value is completely based on tangible benefits derived from the service. The benefits considered could be based on convenience, time or money. E.g. Service availed to get the cheapest air fares available, money transfer using mobile. These above three categories of MVAS provide a unique combination of perceived and practical values for every user and this may change over time as the market & users evolve. To understand the growth of the different types of MVAS and their future growth, they have been analyzed on both the above mentioned factors.
{1-The above quadrant of 2008 market explains the perceived & practical value of VAS to the subscribers; where high perceived value had been given to the Entertainment VAS which had low practical value. Infotainment & MCommerce are below the perceived value but carrying high practical value to the subscriber. 2- As per IMRB research VAS market in 2013 will focus more on Infotainment & MCommerce where they achieved more practical & perceived value. As far as entertainment is concern the perceived value of it will decrease and no change its practical value.}
Perceived & Practical value of Entertainment VAS

Entertainment VAS has been responsible for fueling the growth of Mobile VAS in India and continues to do so. It has been able to capture the imagination of the end consumer and is being used not only for self entertainment but also for self expression as in the case of forwarded P2P messages, CRBT, etc. The key component in Entertainment VAS is music which is responsible for popularity of FM channels, devices like iPod and even preference of FM enabled mobile phones by the end consumer. Entertainment VAS has a very high perceived value but scores low on practical value. Perceived & Practical value of Info VAS The key characteristic of Information VAS is that most of it caters to specific segments within VAS users and is seldom of mass appeal.This makes the task of marketing these services difficult. These have a moderate practical value and low perceived value. But it has the potential of high practical value in cases such as stock updates, etc.
Perceived & Practical value of MCommerce

MCommerce in India is at an embryonic stage and only a small percentage of the mobile users are even aware of availability of such services. Though it has a low perceived value, the practical value of mCommerce has the highest potential among all MVAS. The key barrier in adoption of mCommerce is the security aspect related to it; consumers are expected to over barriers and realize the high practical value of mCommerce.
2.4 Pillars of MVAS The growth of MVAS is based on 4 pillars:Access devices, Content, Technology and Infrastructure
TECHNOLOG Y
ACCESS DEVICE
Infrastructur e
CONTENT
Access devices Access devices play an important role in the usage of different MVAS categories. The lack of features like GPRS and Java in handsets makes a number of MVAS futile. Therefore the affordable availability of such features is a key factor in determining the size of the target audience to a large extent. Another access device which will soon see the light-of-the-day in India is MID (Mobile Internet Devices).Even technology companies like Intel are increasing the power of mobile platforms with a specially designed low cost processor called Atom.
Content Content is very essential object in MVAS, where every content must match its target consumer. For content aggregators/developers/owners to play a significant role in the category, relevant content needs to be generated. They need to play a larger role from merely being a content aggregator and transporter. Currently, packaging and marketing of content is primarily in the hand of operators. The stakeholders are currently not sharing the burden again citing reasons of lack of sufficient returns. Infrastructure Infrastructure is the hub for the MVAS without which nothing will precede. Infrastructure requirement needs to be met to connect the potential of different technologies. Setting up infrastructure especially in the rural areas is going to play a major role in the growth of MVAS. Technology There are 2 aspects to technology. One is the technology platform itself and the second is the communication technology. On one hand technology platforms are independent of geography and are transportable across borders unlike content which needs to have a regional flavor for e.g. mobile payment platform, IVR, etc. Though there are challenges in case of platforms like speech recognition given the high number of languages and dialects spoken in India. Communication technology is also independent of geography but depends on regulation issues.
2.5 MVAS in Indian Market The Indian mobile telephony market has grown at a rapid pace in the past six to seven years. Declining call tariffs in conjunction with favorable regulatory policies have lead to a tremendous increase in the subscriber base, crossing the 100 million
mark in 2006. While the growing subscriber base has positively impacted industry revenues (which have risen consistently over the past few years), operator margins also have shrunk, pulling down Average Revenue per User (ARPU). As ARPU declines and voice gets commoditized, the challenge is to retain customers, develop alternative revenue streams, and create a basis for differentiation in markets. In the wake of changing industry markets, telecom operators are looking at Mobile Value Added Services (MVAS) as the next wave of growth, and a large amount of revenues is expected to flow from MVAS in the near future. Market growth drivers on the supply side include declining ARPU, brand differentiation needs, and growing focus on entertainment-related content; demand-side drivers include the booming Indian economy, increasing user comfort with basic mobility services, personalization of content and devices and cheaper handsets. From the early days of Person-to-Person Short Message Service (P2P SMS), the industry has witnessed an emergence of a growing portfolio of services including graphics/wallpapers downloads; ringtones and caller ring back tones (CRBT), SMS contests, and games
Entertainment VAS is expected to drive the growth of the market going forward with Video/TV and games registering the highest growth rates among other segments in the near future. The growth of industry also has led to the development of an entirely new business eco-system: supporting industries such as content development and aggregation. A typical value chain in the MVAS industry encompasses content creators, providers, aggregators, technology enablers, and operators. Given that the industry is young and evolving, the rules of the game are yet to be laid down. As a result, revenue sharing arrangements across the MVAS value chain have emerged in favor of the operators. Operators typically retain the largest amount (around 60%) of revenues, followed by 15% to 25% for content aggregators, and 10% to 15% for content creators. The share of operators is expected to decline from the current 60% to 30% by 2010, with other players across the value chain accounting for almost 70%, as compared to 40% at present. The revenue sharing model in the future in India is expected to
replicate the model seen in developed MVAS markets such as China, Japan, and Europe. The current MVAS market (as of June 2008) is Rs 5780 crores. P2P SMS contributes Rs 2140 crores to the MVAS market and this goes only to the operators (the balance Rs 3640 crores is divided between the different stakeholders including the operators.). Rs 2312 comes from CRBT/RT while the balance Rs 1329 crores is divided amongst the other services.
The MVAS market registered a growth of 60% 2006-07. The MVAS market is expected to grow steadily at a rate of almost 70% for the next two years. By end June 2009 the VAS market is expected to stand at Rs 9,760 crore and by end June 2010 at Rs 16,520 crore. MVAS currently contributes around 9 % to the operators revenue. It is expected to increase to 10.4 % in the next 1 year and 12% by June 2010.
2.5.1 Mobile VAS in rural market The next wave of Telecom growth will come from the rural market. For majority of the population in the rural segment, the mobile phone is the first communication device. Rural should not always be interpreted as poor and therefore some categories of MVAS might apply directly to them. But whether the statement can be extended to MVAS depends on some key factors. One is to clearly identify the need of the rural segment, Second is to communicate the services to them i.e. generate awareness and Thirdly, to provide an easy and cheap access mode to the rural consumers. All these 3 are quite big challenges and therefore needs to be addressed adequately for MVAS to take off in Rural India. Apart from the identification of rural consumer needs and development of relevant content, communication of these services to the rural population would be a bigger challenge. One way to do this is to communicate through regional SMS for which a separate SMS gateway needs to be installed. Literacy level of the geographical area will be another limitation. Therefore the better communication option is Voice in regional languages. The challenge with regional voice is not only investment but also blockage of the already scarce spectrum. Marketing the content in rural market is going to be all the more challenging. This would require right packaging and pricing of MVAS. Providing cheap access mode to end consumer would be another key booster to rural MVAS. Current voice MVAS charges are expensive from a rural consumer perspective therefore that also would need to be addressed for e.g. the sachet model could prove to be successful here. MVAS is going to address two main needs of rural consumers- connectivity and entertainment mode. Connectivity will provide Information VAS on Agriculture necessary for the farmers livelihood e.g. mandi rates, weather, Health, finance, job opportunities etc
are potential areas. Mobile also has the potential to evolve as a key entertainment mode considering lack of other entertainment options in rural areas. The industry has witnessed some type of content being downloaded more in small towns of UP and Bihar rather than in metros like Delhi and Mumbai. Therefore by leveraging on these two aspects MVAS can be a success in rural area. 2.6 Future of Mobile VAS in India The future implementation of MVAS in India will encompass several new and exciting areas such as mobile internet, location-based services, and regional content-based services. Maturity of the MVAS market also will give impetus to the market for M-commerce applications in India. Favorable government policies and advances in technology are encouraging providers across the MVAS value chain to explore innovative ways to address the mobile telephony needs of Indias rural population The Indian MVAS space will witness a high growth trajectory, creating tremendous opportunities for all stakeholders. However, all stakeholders across the value chain need to work collaboratively to overcome growth barriers and create an ecosystem that generates fair rewards for all. The key challenges are to establish the required content authentication standards, and enact laws pertaining to copyright protection. Further, a transparent revenuesharing arrangement set out under the aegis of an industry apex body such as the Telecom Regulatory Authority of India (TRAI) would bring more clarity to the potential rewards for all stakeholders, thereby ensuring equitable participation across the value chain. As far as content is concerned, there is a need to go beyond music, music, and sports, to cater to the needs of all consumer segments.
Mobile VAS industry in India is undergoing a lot of changes:Consolidation of MVAS content providers market: Currently, the MVAS market is fragmented and consists of a large number of small content providers. Consolidation of MVAS market will happen, leading to emergence of few strong content providers. This would enable content providers to command greater share of revenue in the MVAS ecosystem. Rational revenue structure: With the growth of MVAS market in India, more rationality will emerge in the revenue structure. The revenue structure would be dependent on the value added by the respective stakeholder in delivering the product to the end user. This would enable the growth of MVAS market in India. Rural MVAS market: MVAS market in India is largely dominated by urban population, with rural constituting around 15% of the total market. Rural MVAS market would witness marginal growth and would grow to around 20% in the next couple of years. The growth drivers would be availability of vernacular content, entertainment services and voice based services. Growth of M-commerce market: M-commerce has tremendous growth opportunity in India. High penetration of mobile phones would give a boost to this industry. The stakeholders need to work in tandem to ensure that issues like low awareness, security constraints, user friendliness and pricing of the services are aligned towards the consumers. The services that would provide boost to the m-commerce market in India are mobile marketing, mobile banking and mobile payment. A major step has been taken by RBI in issuing the Mbanking guidelines.
Differential pricing of content: The telecom operators have already taken a step in this direction. Further, in an attempt to cater to the expanding mobile subscribers in India, the telecom operators will price the content in a manner suitable to the target respondent. Deployment of NGN network: Introduction of Next Generation Network would enhance the quality of services in the MVAS market in India. The users would be able to access more feature rich services. NGN uses soft switch technology, which is based on Packet Switching/IP phone and enables introduction of new MVAS speedily at reasonable cost. Hence with usage of NGN network in India, we can expect greater proliferation of feature rich MVAS.
2.6.1) Driving force for MVAS India has a high proportion of mobile subscribers to total telecom subscribers, driven by the faster wireless rollout, inexpensive handsets and low cost prepaid cards. The industry stakeholders and the consumers are driving the growth of MVAS in India. The various drivers of the market can be classified as follows: Supply side drivers Marketing Efforts by Operators: Operators are investing heavily in reaching out to customers more effectively to make them aware of various services being offered by them. They are targeting sms and out bound dial ups to reach out to customers to get alerts n update subscriptions. Promotions have got more targeted and operators are investing
significantly in making sure that they offer direct marketing platforms like out bound sms, dial ups etc. Increase in User Base: There is growth in number of subscribers every month and therefore the mobile industry is witnessing an unprecedented growth. With increasing growth rate of low end subscribers Traditional MVAS (P2P and P2A SMS) will have a huge growth potential among the low end mobile subscribers. Price Decline of MVAS services: Looking at the high growth rate of low end mobile subscribers the MVAS services are being offered at attractive prices such as subscription packs of free SMS or news alerts etc. New Technology Adoption By operators: From 3G, new services for premium MVAS consumers will come like video services which use fair amount of bandwidth, (live TV, cricket match). Today because of lack of data speed it just does not work. Impact of 3G: The Ministrys decision to open up the bidding to all player for 3G spectrum, gives a chance to the foreign players like Deutsche Telecom, AT&T and new Indian players such as Unitech and Hindujas to enter the high growth telecoms market. Players who would get 3G spectrum would have an upper hand as relative to other players. Entry of foreign players would encourage the growth of mobile VAS services for additional revenues. Since quality and speed of data transfer increases, and 3G is a more secure medium, mobile banking would get a boost with the advent of 3G. Also, foreign players might bring in new technologies for development of MVAS market in
India The anticipated high price of 3G services may act as deterrent for mass market penetration. The Telcos would have to identify niche segments for 3G services.
Demand side drivers

In the age of convergence, the prominent growth driver of MVAS would be the consumers desire of getting more and more from their personal cellular device. While among the youth in India entertainment service would be popular, the other consumers would also look out for utility based services like location information, mobile commerce (M-Commerce) for mobile transactions and Local content rich services. Need for Entertainment: The youth segment that makes up 30% of the total handsets market in India seeks entertainment on mobile. Currently, about 44% of MVAS revenue in India is driven by short messaging service applications. The youth segment will also continue to drive the market, particularly in the entertainment MVAS. After P2P SMS, MVAS would be driven by music. As far as the technology or product is concerned, currently in voice based services CRBT rules the game. Mobile Commerce and Transaction based services: In year to come money transfers, driven by lack of banking infrastructure seems to be a key service need. MCommerce would be a large growth driver in 2-3 years time. With a lot of companies offering bill payment for utility services through mobile will help grow MCommerce. This will largely come from urban because MCommerce is related very strongly with bank accounts, credit cards which is largely an urban phenomenon.
Local Content: Unfortunately today Local content not available adequately. The content partners currently are not developing content specific to even big metropolitan towns such as Raipur not to talk about relatively smaller towns. Therefore there is a great need of investing right resources in developing rich content which millions of users will start subscribing.
3.0 MVAS Ecosystem

The mobile VAS ecosystem in India is at an embryonic stage. This has resulted in increased complexity and lack of clarity within the ecosystem. The MVAS sector has seen lot of small players foray into the domain.
Custome r
Operator
Technology Enabler
Content Owner
Content Aggregator / Developer
Short Code Provider
Service Flow
Data Flow
Revenue Flow
3.1 Understanding the role of various entities

Content Aggregators/Developers: The MVAS growth has given birth to a new entity which aggregates content originally designed for some other media, from different sources. Some of the content aggregators also develop content especially for mobile phones for e.g. mobile games. On one hand they coordinate with operators and on the other, with content owners and smaller aggregators. Another key role played by them is handling of the IPR related issues - thus reducing the burden of the mobile operators. Content Owners These are the actual owners of the content who hold the copyright of the same. Though the content is developed for some other media, the MVAS has started contributing significantly to their overall revenue generation. A good example is of CRBT which is giving good revenue to the music labels.They mostly provide content to Content Aggregators but also some times interact directly with the operators. In recent cases, Content owners sell the content directly to handset
manufacturers for e.g. Nokia tied up with Om Shanti Om providing exclusive songs, wallpapers, games, etc. Traditional Media Companies Media companies like TV channels and FM channels have also joined the bandwagon. All the big TV channels have started selling their content through short codes. STAR has even launched a mobile division named STAR Mobile Entertainment to provide mobile codes and mobile related content. The key revenue source for the media channels is Voting in shows like Indian Idol and contest participation in shows like Paanchvi Paas. Post the success of talent hunt shows and contests like KBC, the TV slots have been flooded with such shows and other reality shows. Though the initial euphoria has not sustained, voting and contest participation continue to contribute significantly. Technology Enablers Technology partner & platform enablers handle software platforms and authoring tools. Thus they provide the backbone to all the MVAS being provided. The technology backend include solutions like Tele voting system, Voice portal, etc. Short Code Providers These are the companies who own a short code (e.g. 58888, 53456 etc) which is sold to a third party client for some keyword and a specific period. On one hand they need to tie up with the operators to ensure their short code works across subscriber base and on the other hand they sell their short code to other companies like real estate, hospitals, etc. who advertise their products using the short code. Content converter Since most of the content in MVAS is originally designed for some other media, it needs to be converted into mobile compatible format. This is where content
converters enter the value chain. They interact with the operators and work closely with them.
4.0 NEOMOBILE group

Neo mobile is global entertainment company, one of the fastest growing players in the industry. The company designs develop markets and distribute digital content and interactive services for mobile users in partnership with mobile network operators and media companies around the world. Further more Neomobile is a pioneer in the mobile marketing space, able to create and market end to end campaigns and promotions for ad agencies and advertisers. Since 2004, Neo mobile has been focused on direct to consumer (D2C) mobile content with growing success, leading the company to become, in 2008, the No: 1 Player in the Italy and among the top 5 D2C players in Spain and Turkey. The acquisition in 2008 of Arena Mobile, a global leader in the markets Europe, Asia and Latin America, has strengthened the international presence and strategies positioning of the group, adding a b2b business line. Neomobile is an active
member of the Mobile Entertainment Forum (MEF) and the Mobile Marketing Association (MMA).
Key Points:
Over $80 million revenue generated in partnership iwth Mobile Network Operator in 2008 (40% increase from 2007).
More than 3 million user downloaded Neomobile digital content in 2008. Addressing a potential market of over 1.5 billion mobile lines. Active Collaboration with over 120 mobile network operator globally and with over 30 media companies.
In 2004 teleunitss mobile VAS business unit created .Dendo 48288 is launched simultaneously for TIM, Vodafone Italy and Wind customers. In 2006 Neomobile launch mobile value added services in turkey under Dito Mito brand. In year 2007 Neomobile started its projects in Roma and in Spain, at the end of year 2007 Neomobile starts its operations in Brazil. In October 2008 MPS Venture (Private Equity Fund of the Monte Paschi Siena Group) invested 10 million euro in Neomobile.
Offices in 14 different countries addressing 30 markets around the globe.
In year 2008-09 Neomobile finalizes acquisition of Arena Mobile, a global leader in b2b segment. Neomobile is now a leading group operating across Europe, the Middle East , Latin America and Asia Pacific; major player in the mobile entertainment industry, in the D2C, B2B and Mobile Marketing business segments. Neomobile launches VIPs Power Store, the first Application store open for users of all users in Italian Mobile Carriers, and for wide rage of smart phones and mobile operating systems.
3.1 Services Provided

Neomobile has gained extensive experience and know-how in designing, marketing and delivering content and services directly to consumers (D2C). The content and services portfolio spans from ringtones, ring back tones, graphics and games to music application chat and social networking. Services are distributed through the proprietary SMS, WAP, and Web and voice multichannel platform and marketed through its well known consumer brands in Italy, France, Spain turkey
and Brazil. Neomobile has strong media know how, which leads to effective crosschannel marketing communication strategies. Neomobile group strives to offer customers the highest quality of experience and has thus undertaken many initiatives to ensure customer satisfaction and loyalty. For that reason the company has been one of the promoters of the first Italian Code of conduct for subscription Services (CASP) and has implemented parental control tools. Short Message Service (SMS) SMS was the first mode introduced for accessing MVAS. MVAS market is currently dominated by SMS in terms of revenue. The SMS platform is used by telecom operators to provide a variety of services such as information services like news alerts, cricket scores, chatting services, etc.
WAP () GPRS currently contributes around 6-7% of the overall MVAS revenue. Neomobile provides various WAP contents including Images, wallpapers animations MMS videos and other WAP services. The primary drivers for the adoption and usage of mobile internet are availability of cheap data-enabled handsets and lowering of GPRS tariff by mobile operators. GPRS is an effective medium of accessing MVAS, but is restricted by relatively lower consumer base. Voice Interactive Voice Response (IVR) system is used to deliver Voice based Value Added services to the consumers. In this system, the end user interacts with a computerized system to tap the service. The end users can select the options available on the service either through numbers on the keypad or using speech
Recognition system. Neomobile Voice based services are offered in a variety of types including Jokes and Bollywood updates and Ringtones/CRBT: This is inclusive of monotones, polytones, true tones and also includes CRBT (Caller ring back tones) Mobile Marketing The Group offers world class expertise in mobile marketing services which enable companies, including advertising agencies, media group and consumer goods companies to use mobile technology for advertising and promotional purpose. More especially Neomobile leverages its global partner network; technology assets and distinctive marketing capabilities to design develop and manage end-to-end mobile campaign which delivers customer an extraordinary return on investment. In last years hundreds of mobile marketing projects have been developed and managed with top brands and advertising agencies including Ogilvy, Nokia , Diageo , Tourespana among some of them.
3.3 Content Provider

Contents are provided by various sources in various forms which includes WWm - Film Fare, Femina:Various data Including Bollywood updates and celebrity news are provided. Next Generation Publications Car India / Bike India:Providing data about automobile updates which is further on used by Neomobile in forms of wallpapers and animations DesiMad- Voice:Providing all voice related content data such as Jokes and Songs
Channel V Get gorgeous:Channel V allow Neomobile to use the videos as there content which will help in publicity of various shows e.g. Get gorgeous
3.4 Client Relationship

There are basically two types of relationship with their Clients 1- Content Licensing:Neomobile give the license for the usage of the content to there client under any of the three conditions a) Revenue Share - A fixed percentage out the revenue which your client earn b) Secure Share - A fixed amount is charged by the Neomobile for allowing client to use the content.
c)
Secure + Revenue Share: - Charging clients a fixed amount and also claiming a fixed percentage in revenue share.
2-
Content Distribution :Neomobile jointly take part in distribution of the content with the client here they tie a specific agreement under which they will work together.
3.5 Business Cycle
Operator
Neomobile
Content Provider
Customer
Revenue Flow Content Flow
Example:Customer:Buys VAS (Wallpaper) contents from operator @ Rs 15 including 15% taxes (Service Tax + Department of Telecom Tax)
Operator:Operator buys the Content from Neomobile Provide the content (Wallpaper) to customer and receives (Rs 15 15%) Rs12.75 Neomobile:Neomobile supply content (Wallpaper) to the operator and collect its revenue share of 40 %( 5.1) in 12.75. Content Provider:In some cases Neomobile group play the role of content provider. If the content provider is separate then Neomobile is going to pay the revenue share for content provider which is 50 %( 2.55) of Rs 5.1.
5.0 Mobile Value Added Services Survey

1. Need for the Study:This survey was conducted for better understanding of Mobile Value Added Services usage among different people. There opinion on different Value Added Services its monthly charges its customer service and other aspect will help us to know more about Value Added Services.
2.) Limitations:a..) The study on Mobile Value added services was on the limited number of users (100 users). with different background 25 people of different background were interviewed b.) Since the mobile services are inconsistent and varies time by time users had given opinion on what they have experienced.
c.) Employees included in this survey are from three sectors CA Firm , Shipping Industry and Reliance communication; employees of other fields are not included in this survey, d.) Students in this survey are from Navi Mumbai colleges and the survey was limited to this area only.
3. Procedure:100 Questionnaires were distributed among people (65 male 35 female) of different background to know about their usage and their opinions about mobile value added services. On 6th of August 25 questionnaires were given to the students of different classes On 7th of August 25 questionnaire were given to retired and house wives On 7th August 25 of the questionnaires where given to the people engage in business On 8th of August 25 questionnaire were distributed among three different offices which includes CA firm Shipping Company and Reliance Internet Service Provider Customer Care Office
1-
Segmentation of the Mobile users in to four categories a) Business :-Those mobile users whos profession is business
b)
Service :- Those mobile users who are employees of Government/non Government offices
c)
Student :- Mobile Users who are students particularly College Students
d) Retired & House Wife : Those Mobile users who are off duty and they spend there maximum time in house and surroundings
2-
Knowing the mobile service provider to know more about their customer care in regards to Value Added Services.
3-
Knowing about the services which are activated in mobile user phone, which will help to know about the service which is mostly used.
456-
The amount of money the mobile user pay for Value Added Services monthly Mobile User opinion about Value Added Services charges Mobile Service Operator Customer Care in regard to Value Added Services, this will help us ranking the best Value Added Services customer care operator.
7-
Source of information and updates of Value Added Services, this study will bring the most preferred or useful source of marketing value added services.
8-
Knowing about the downloading and the charges for which the mobile user pay. 9- These services are launched by TRAI under the Government of India. Do Not Disturb (DND) which is activated by the users in order to stop mobile marketing call and SMS. These services are the barrier for Value Added Services marketing and promotion; it creates a challenge for the operator to market their Value Added Services. It can be activated by just sending DND to your service provider customer care, after the period 45 days the DND service is activated in your mobile. If the user receives any marketing call or SMS after this period then the user can sue the marketer.
Do Not Disturb or Do Not Call Services are a blockage for mobile marketing, Value Added Services companies. This study will make us understand that how many people know about this services and how many people had activated this on there mobile phones
10-
Ranking the different Value Added Services according to their importance by the user (Rank 1 to 9), later ranks are given on an average bases to know about most important Value Added Services.
4.) Findings:4.1) Retired and House wife:In survey of retired and house wives, 25 people were interviewed which include 17 women and 8 men from our study following have been understood:-
1.) Services activated in users mobile:Services Activated Services CRBT GPRS News Alerts Astrology Miscall Alerts Cricket Alerts Spiritual Alerts Entertainment Alerts
No: Users 16 11 8 2 19 2 4 4
a.)
The most Value Added Services used are Missed Call Alerts followed by
Caller Back Ring Tone (CRBT) and Internet Services (GPRS). b.) Missed Call Alerts helps the user to know the number of call he missed at the time mobile is not in network or switch off.
c.)
Caller Back Ring Tune (CRBT) activated by this category of people are
mostly Spiritual and Traditional tones. d.) Internet Services (GPRS) activated and are used for the purpose of Email and Chatting with their close ones.
2.) Monthly Charges of the above services

Charges Less than Rs 30 No: Users 8
Rs30 - Rs 60 Rs 60 - Rs 100 More then 100
11 3 3
a.) Monthly Value Added Services fees or charges of the majority of the users are between Rs 30 to Rs 60. b.) This shows that the usage in this category of people cannot be avoided and new and innovative mobile services will targetting this category will help the operator to increase the Average Revenue Per User (ARPU).
3.) Are the charges Reasonable

YES NO 11 14 25
a.)
Majority of the users (56%) believe that the operator charges for the Value
Added Services are high and the charges must be reduce. b.) By decreasing some percentage in charges will help to increase the usage of alue Added Services between retired and house wives.
4.) Source of Information

Source
Mobile Marketing Internet TV Channels Others Sources
No Users
12 3 11 8
a.) The main sources of information about Value Added Services are Mobile Marketing and TV Channels. b.) Other Sources include Bill Boards, Banners , Magzines , News Papers & friends. c.) Internet Marketing is not successful in this category of users and it targets ery few customers
5.) Downloading
Downloading Often Rare Never No: Users 5 12 8
a)
Downloading of various contents it includes Wallpapers, Ring tone , Theme
and Videos. b) There are two methods of downloading Push Method and Pull Method. c) Pull Method is when the users is use to search for the content, and thendownload that content.This require Internet Services Actiation (GPRS). d) Push Method is whenthe operator sends downloading offersto the users through SMS. e) Retired and House wives use to download very rarely and they download specific contents in specific time.
6.) Monthly Average Charges paid for downloading

Charges Less than Rs 30 Rs 30 - Rs 75 Rs75 - Rs 100 More than Rs 100
No: Users 11 4 1 1
a.) Since the users are less intrested in downloading eery contents and the hae there own specific choice therefore the charges of download are less then Rs 30.
7.) Do Not Disturb (DND) Services

No: Users Yes No No Idea about DND 4 15 6
a.) b.)
Few users have activated these services. Majority of the users do not want to loose the source information; they believe that mobile marketing bring good offers to them.
c.) More then the people who activated the services there are people who dont have idea about DND services.
4.2) Business People:-
Here 25 people which include 21 male and 4 female of different businesses were surveyed. From our survey we understood the following:-
1.) Services activated in user mobile.

Services Activated Services CRBT GPRS News Alerts Astrology Miscall Alerts Cricket Alerts Spiritual Alerts Entertainment Alerts No: Users 18 14 6 4 15 8 3 9
a.) Caller Ring Back Tune (CRBT) is most used among the usiness people followed by Missed Call alerts and Internet services (GPRS). b.) From the survey we understood that people engage in different business activate CRBT beacouse they believe that it shows their charateristics and it is having a pschycological effect.

Charges Less than Rs 30 Rs30 - Rs 60 Rs 60 - Rs 100 More then 100 No: Users 2 9 12 2
48 % of the users have monthly fees of Rs 60 to Rs100 , others are between Rs 30- Rs 60.
a.)
b.) The Increase in their VAS charges are because of the additional new Value Added Services contents such as Cricket Alerts , Entertainment Alerts (Jokes)
3.) Are the charges Reasonable ?

YES NO 10 15 25
a.) 60% of the users believe that the charges are not only high but fake also,many times users were charged for those services which they have not been used by them. b.) 40% of the users are satified only by the charges but even they have faced the problem of fake charges.

Source Mobile Marketing Internet TV Channels Others Sources
No Users 16 15 4 5
a.)
Mobile Marketing and Internet marketing targets a huge numer of customers.

b.)
TV channels & some number of the users are updated through internet &
others sources.
5.) Downloading
Downloading Often Rare Never
No: Users 7 14 4
a.) 55% of the people rarely download contents. b.) Very few people ofenly download, the reaon behind may be technology barrires and limited contents avialablity.

Charges Less than Rs 30 Rs 30 - Rs 75
No: Users 18 4
Rs75 - Rs
More tha
a) Mothly downloading charges of 72% are below Rs 30. b) In our survey there was only one person havig dowloadig charges of more than Rs 100, this indicated lack of avialablity of usefull contents.
7.) DND Services

No: Users Yes No No Idea about DND 12 5 8
a.) 48 % of the users have activated DND (Do Not Disturb) services , they believe that mobile marketing calls are irretating, wasting time and fake. b.) Other users have not activated beacouse they are not aware of the services properly.
4.3) Service/Employees
The total number of 25 employees of different fields was questioned in the survey. 25 employees including 22 male and 3 female belong to the CA firm , Shipping Company and Reliance Communication; after conducting the survey the the following were understood:-
1.) Services activated in user mobile

a.) Employees have the highest rate of using Caller Tune (CRBT).
b.) Missed Call Alerts was the 2nd highest activated services by the employees c.) News Alerts are in the 3rd rank, news alerts are activated by the employees in order to know about the political and economical news during the peak hours. Stock news helps to update those employees who have investment in stock market d.) GPRS are used only by those employees who dont have internet access in their office or they dont have time to use internet for there personnel use in the office hours.

Monthly charges of an employee are above Rs 30. b.) 48% of the employees have monthly charges of rs 30 to Rs 60, 20
% of the employees have monthly charges of more than Rs 100.

c.)
This shows that Value Added Services usage the highest amonth
the employees.

YES NO Total 10 15 25
a.) 60 % of the employees are dissatisfied by the charges the pay. b.) Majority of the dissatisfied users have the problem of FAKE charges. c.) 40 % who believe that the charges are reasonable are enjoying some free services or there employer use to paythier bills.

Source Mobile Marketing Internet TV Channels
No Users 18 3 4
Others Sources
10
a.) Mobile marketing targets maximum numbers of the employes followed by other sources such as Magzines News papers bill Noards, Colleques and friends. b.) Internet and Tv Channel targets a very few proportion of the employees
5.) Downloading
Downloading Often Rare
No: Users 4 14
Never
a.) Employees used to download rarely b.)28 % of the employees do not download c.) Only 16 % of the employees use to download on regular basis d.) Employees use to prefer download Wallpapers, Ring tunes & videos.
Charges Less than Rs 30 Rs 30 - Rs 75 Rs75 - Rs 100 More than Rs 100
No: Users
9 6
a.) 50% % of the employees have downloading charges of less than Rs 30. b.) 33 % pay the average charges of Rs 30 Rs 75 c.) only 3 employees have the monthly downloading charges of more than Rs 100
7.) DND Services

No: Users
Yes No No Idea about DND
10 7 8
a.)32 % of the employees dont have any idea about DND services b.) 40 % of the EMplyees believe that mobile makrteting calls are irretating and a disturbance to their work their fore they have activated these services. c.) Other Employees didnt activated DND services beacuase they beiwlve that mobile marketing make them update with new services whioch the company offers.
4.4) Students
In a survey of 25 students which include 14 boys and 11 girls of different colleges following were understood:
1.) Services activated in user mobile

a.) b.)
Out of 25 students 3 users didnt activated Value Added services GPRS (Internet Services) are used by 56 % of the college students.
c.)
Students believe that GPRS is the best way to be connected with
friends all the time through Messengers and Social Networking sites.
d.)
Miscall Alerts and Caller Tune (CRBT) are used in equally with in
the college students

a.) Arount 50% of the students have monthly charges of Less then Rs 30 b.) There were oly 9 % of the studnets having monthly charges of above Rs 100
YES NO Total
13 12
25
a.) 51 % of the students believe that the s charges are reasonalbe while 49 % of the students say the charges are high. b.) Mobile Operatoers such as BPL , Airtel start provividing GPRS Serivces free of monthly charges which change the opinion of the students and they believe it is reasonable

Source Mobile Marketing
No Users
14
Internet TV Channels Others Sources
5 7 4
a.) Mobile Marketing targeting more than 50 % of the students followed by TV channels and Internet services. b.) Tv Channels such as 9Xm , MTV , V Channels and B4U Music are the sources for promoting the entertaiment VAS (vale added services).
5.) Downloading
Downloading Often
No: Users 6
Rare Never
7 12
a.) 49 % of the students do not prepfer to download contents from mobile. b.) 51% students prefer to download entertaiment contents such as Celebrity Pictures , Movie Trailers , Cars and Bikes.

Charges No: Users
Less than Rs 30 Rs 30 - Rs 75 Rs75 - Rs 100 More than Rs 100
7 2
a.) from the 13 users only 4 of them have monthly charges of more than Rs 100 b.) Majority of the students having less than Rs 30.
7.) DND Services

No: Users 79 Mobile Value Added Services
Yes No No Idea about DND
7 12 4
a.) 48 % of the students have not activated the DND because they believe the mobile marketing is the best service to updates them about the Vale Added Services. b.) Less Than 30 % students have taken the benefit of DND services , they believe that mobile marketing is wasting time during busy study schedule. c.) 22% of the students do not have any idea about DND services, since they are not bothered about mobile marketing calls and they receive it very rarely.
4.5) Ranking Value Added Services

Mobile Value Added Services is having its importance to the customers & it adds a value to their usage. In a survey we asked 100 people of different background to rank the following Value Added Services according to their importance Average Ranking Services GPRS CRBT Informative Alerts Entertainment Alerts Ranking out of 9 7 6 5 4
1.)
GPRS ranked 1st by an average rank of 7 out of 9
Users believe that by changing in mobile technology GPRS usage and its importance will increase among the subscribers.
2.)
Caller Ring Back Tune (CRBT) ranked 2nd with an average rank of 6 out of 9. Although Caller Ring Back Tune do not have any practical value but many users believe that by activating CRBT they can share something with people with whom they are in contact.
3.) Information alerts Ranked 3 rd with an average rank of 5 out 9 Infoamtion Alerts is a wide term this include (Astrology , Miss call Alerts , Cricket Alerts and many others) It is very usefull service and it is having a practical value for the users. 4.) Entertaiment Alerts :- Ranked 4 th with an average rank of 4 out of 9 Entertaiment Alerts are vast term it includes (Jokes , Bolloywood & Hollywoood Contents ) ; users do not sonsider entertaiment alerts as a proper Value Added Serive since it contains many boguss charges.
4.6) Customer Care Services

Customer care service by the operator for the Value Added Serivces are divided in to four cateogires. a.) Poor :- This mean that whenver the cutomer contact the operator reagarding the problem with VAS, the customer care was unable to overcome the customer problem. b.) Average:- It is in between poor and good , average customer service means that some problems of the sutomers are solved while others are not. c.) Good:- This indicates that most of the problems of the customers were solved only few of them didnt. d.) Excellent:- This means that whenever the cutomer contacted cusomer care services , customers all querries were answered and customer is fully satisfied.
1.)Operator Customer Services:People use different mobile connections therefore their customer service varies according to the operator. There are five operator and 100 users each user had ranked the customer care as per his/her experience.
Customer Care
Operator Reliance Vodafone Airtel Tata IndiCom BPL (Loop)
Poo r 1 4 3
Averag e 3 15 7 2 3
Good 19 17 14 2 3
Excellent 3 3 1
Total Users 26 39 25 4 6
Total
30
55
100
a.) Reliance: - 1st Rank Out of 26 Reliance customer which include both GSM and CDMA only one customer feedback was Poor and three customers feedback was excellent, there were nineteen (72%) Reliance customers who had given a feedback of GOOD ; this shows that the customer care service provided for the VAS products are good enough to fulfill the need of the customers. Few feedbacks in average and poor made Reliance 3rd rank.
b.) Vodafone: - 2nd Rank With Highest number of users (39); Vodafone got the high feedback rate in Average and Good. There were four customers given Poor response while three customers had given excellent feedback. Large number of customers in average rank and the highest poor feedback among the operators made Vodafone 3rd rank.
c.)
Airtel: - 3rd Rank Out of 25 Airtel customers, there was only one excellent and three poor feed back, 14 (56%) customers feed back was good and 7 (28%) customers had given the average response. This indicate that Airtel is doing well in managing the customer services but low range of excellent feedback made Airtel rank 3rd
d.) TATA & BPL (Loop):- 4th Rank Almost same number of customer with same with same feedback of 50% good and 50 % average, there were no poor and excellent feedback. Ranking among these two operators were quit complicated due to the very low number of customers (10 users)
b.)Customer Service Overall feedback

a.) From the survey we can understand that 55% of the customers are satisfied with the customer care services provided by there operator but in few cases the operator is fail to fulfill the queries of the customers. b.) 30% of the users giving the Average feedback shows that in many cases the operator is fail to fulfill the need of the customers; this queries are mostly regarding fake charges that the operator charge mistakenly such c.) 8 % with poor feedback and 7 5 with Excellent feedback are the two extreme sides; as we know that service by its nature is inconsistent and it varies time by time and from person to person , customer may give feedback according to what he had experienced.
5.) Conclusion
From survey of 100 customers we understood that Value Added Services plays an important role for customer & for the operator. Value Added Services are enjoyed by the customers as it gives value for their usage and provide some intangible benefits. E.g. Caller Ring Back Tune. Operators provide Value Added Services to increase the Average Revenue Per User (ARPU). Caller Ring Back Tune (CRBT) are activated by 65% of the users and they pay fees of Rs 30 per month for it. 38% of the users have monthly charges of Rs 30 Rs 60 for Value Added Services which they have activated in their mobile. Operators find mobile marketing as the best source of marketing as it targets 60 % of the users. Increasing the downloading from mobile is still a challenging task for the operator.21% of the users does not download, while other users download very few contents. 56% of the users charges do not exceed Rs 30. The constraints for the usage of the downloading are Mobile technology & Technology know how, many users prefer basic mobile where they are unable to download contents and on the other hand users carrying new technology mobiles but they do not know downloading techniques. Do Not Disturb (DND) services are activated by 33% users, this is positive sign for mobile operators because they can target 67 % of customers without any disturbance. Mobile operators target the 33% users through there bills and informing them about the new services while an inquiry call.
26% of the users dont have any idea about DND services; their decision in future will be a fear factor for the operator,
Bibliography:88 Mobile Value Added Services
1.) Telecom Regulation Authority India Report 2008. 2.) Telecom Regulation Authority India Report 2006 3.) URAI survey report 2008 4.) Arena Neogroup Mobile Fact sheet 2009

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ACKNOWLEDGEMENT

1 Mobile Value Added Services

2 Mobile Value Added Services

requirement of Mumbai university as a part of Bachelor in Management Studies (BMS) Programme.

Place: Navi Mumbai :

1.2.1 Pull Factors....8 1.2.2 Push Factors...9 2.0

2.1.2 Need for MVAS ..12

2.2.1 Analysis of Various Categories...14

2.3 Importance of MVAS ....................................17

NEOMOBILE Group 3.1 Company Profile.

6 Mobile Value Added Services

8 Mobile Value Added Services

Statistical data in report is as on the dates of broachers.

The subscriber views were limited to the questionnaire distributed.

1.0 Introduction Indian Mobile Market

10 Mobile Value Added Services

12 Mobile Value Added Services

Selling More to Existing Subscribers

2.0 Mobile Value Added Services

2.1.1 Definition of MVAS

2.1.2 Need for MVAS

16 Mobile Value Added Services

Mobile-Commerce VAS (Transactional services)

These services attracts useful

19 Mobile Value Added Services

RBI guidelines is expected to give boost to M- banking

20 Mobile Value Added Services

Perceived & Practical value of Entertainment VAS

Perceived & Practical value of MCommerce

24 Mobile Value Added Services

27 Mobile Value Added Services

29 Mobile Value Added Services

31 Mobile Value Added Services

33 Mobile Value Added Services

Demand side drivers

35 Mobile Value Added Services

3.0 MVAS Ecosystem

Content Aggregator / Developer

Short Code Provider

36 Mobile Value Added Services

3.1 Understanding the role of various entities

37 Mobile Value Added Services

4.0 NEOMOBILE group

Offices in 14 different countries addressing 30 markets around the globe.

40 Mobile Value Added Services

3.1 Services Provided

3.3 Content Provider

3.4 Client Relationship

3.5 Business Cycle

44 Mobile Value Added Services

45 Mobile Value Added Services

5.0 Mobile Value Added Services Survey

Student :- Mobile Users who are students particularly College Students

47 Mobile Value Added Services

48 Mobile Value Added Services

2.) Monthly Charges of the above services

50 Mobile Value Added Services

Rs30 - Rs 60 Rs 60 - Rs 100 More then 100

3.) Are the charges Reasonable

51 Mobile Value Added Services

4.) Source of Information

52 Mobile Value Added Services

53 Mobile Value Added Services