Today mobile phones have moved beyond their primary role of voice communications and have graduated to become an essential entertaining device for mobile users. Today’s youth use phones more to express their thoughts, for social networking, to show their interests, play games, read news, surf on the internet, listen to music, chat instantly with friends & families and even check their bank balances.
Currently there are ~ 376 million of mobile subscribers in India (TRAI Feb 2009 report). Over 350 billion text messages are exchanged across the world every month. India is amongst the highest in SMS sent and received. At present in India~ 8-10% of the total mobile subscribers are expected to be GPRS (General Packet Radio Services) subscribers as well. Mobile related industries are every day coming up with fresh and ground – breaking mobile technologies and enjoyable services such as Mobile VAS because of which the world has come close together.
What is Mobile VAS?
Mobile value-added services (m-VAS) are services, which offer differentiation and the ability for mobile operators and/or service providers to charge a premium price for the services offered. In simple terms it is anything but the regular phone voice conversation we make over the mobile network. Mobile VAS includes services such as:
- SMS (short messaging services) – Text messages of 160 characters : P2P (peer-to peer) and A2P (Application to peer)
- MMS (Multimedia messaging services) – Send photos, images, screen savers, videos, wallpapers etc.
- USSD (Unstructured supplementary Service Data) – Interactive menu based services
- CRBT (Caller Ring Back Tone) – Plays pleasant music for the callers
Video streaming – Watch on demand movies, TV serials, live sports matches
- Mobile advertisements – Post banners, promotions, sales discounts
Polls and contests– Voting for your favorite contestants by sending SMS to the given short code
- Location based services – Friend finder, restaurants, malls etc
- Bulk SMS – Send greetings, compose one sms to multiple end-users simultaneously based on festivals, occasions, promote retail sales etc.
- m-commerce – Banking and secure financial transactions
Social networking – Instant messaging (Mobile 2.0), sharing video, pictures, presence services, blogging
- IN services (Intelligent Network) – Call divert, call forward, televoting etc.
- Infotainment services – Sports news, current affairs, weather reports etc
- Surfing the Internet – browsing and content download through WAP portals
These are just a few of them which one can imagine at immediate contemplation. There are many more services available in Mobile VAS.
Let us observe and analyze two very popular m-VAS services in India i.e. Internet and SMS.
Internet usage based on demographics
In India, SMS (A2P and P2A) and VAS content download is very popular amongst the mobile users. Let us take a look at some real numbers, which is collected, analyzed by surveying ~10K consumers (mobile users). In our previous article we talked about “Significance of Market research based on demographics and geographics“, it can be noticed (refer chart), men use their mobile phones more than women for browsing the Internet (54:46 – Male: Female). Amongst the various services available on the Internet, men and women both use Internet mainly for searching information through search engine or for email purpose.
SMS statistics based on demographics
Another popular service in Mobile VAS is SMS. Take a look at the SMS report, SMS related to downloading of ringtones, wallpapers are the most popular category cite to have received.

9 out of 10 females recall receiving SMS related to downloading wallpapers compared to around 8 out of 10 males. Categories that males recall include things related to contests or financials products (loans, investments etc). The above report includes subscribers of all cellular operators in India and mobile users are spread across various parts of India.
Prediction of Mobile VAS
With the launch of 3G services in India, video streaming, m-commerce, mobile blogs and mobile chat is expected to grow well. As per TRAI predictions, mobile VAS revenue growth contributing to telecom industry is expected to grow to 30% in next 5-7 years. Which is way beyond the current contribution of 10-12%. By 2010 Mobile VAS in India is expected to be 10 billion USD market. Let us wait to see what happens in 2010. Mean while, what do you feel, the potential of other services in Mobile VAS (CRBT, ringtones, games etc) going to be by 2010 in comparison to Internet and SMS services. Do let us know your thoughts.