Mobile VAS in India – Key Drivers

Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. Mobile phones have become an essential communication tool for almost every individual.

Advent of Mobile VAS has taken telecommunication to next level by providing easy accessible and cost-effective services to mobile users. Unlimited mobile Internet (GPRS) and bundling of various SMS VAS services are the main drivers of VAS growth in India.

Based on data gathered in May 2009 for March/April 2009, 56% of urban Indians would use mobile Internet (if not already) if offered on an unlimited usage basis for a reasonably priced fixed monthly cost. Ability to select multiple VAS SMS services for a bundle fee appeals to 1 in 2 (over 50%) urban Indian owning a mobile phone.

Possible usage of VAS services if offered by service provider
Two-month average, March 2009 and April 2009
India Urban Mobile Phone Users (N=3,637)
Vital Analytics
Services Likely to Use*
Overall Male Female
Unlimited Internet Usage on phone for fixed monthly cost 56.6% 55.2% 58.1%
VAS SMS Bundle offers 53.4% 46.6% 60.7%
Unlimited song downloads for fixed monthly cost 50.9% 45.8% 56.3%

*Users were asked to rate various VAS services on a likelihood to use scale

Women are a more receptive lot when it comes to willingness to use, over 60% of women indicated they would subscribe to VAS SMS bundle offers compared to around 47% men, similarly 56% of women would subscribe to “unlimited songs download” as against men (46%).

Essentially, Indian consumer is a bargain hunter who will go after a package plan rather than shop for services individually.

Video Tones

In terms of tone preferences, video tones attracted a lot of attention, around 46% of respondents would like to subscribe to a service where they can view videos of their favourite songs when the phone rings.

About Vital Analytics

Vital Analytics is a pioneer in measuring current and future mobile trends in India. For more information, please visit

Article By Naveen Menon

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