Mobile VAS in India: Numbers that you should know

Mobile VAS Numbers for India:

Key Numbers as of March 2008

  • Total Mobile subcribers – 250mn
  • Avg. ARPU : Rs. 250/
  • Prepaid connection comprise 85% of total subscriber base.
  • VAS constitutes 7% of the total total telecom revenue for Indian operators.
  • Digital music (including CRBT and ringtones) constitutes 35% of VAS revenue
  • Almost half of Indians use ULCH (Ultra Low Cost Handsets)

ARPU Split of Rs 250

Voice + Rentals90%Rs 225Includes Rentals, Activation Charges, etc.
P2P SMS (primarily)

Also: GPRS Data, Call Roaming, CLI

5%Rs 12.50None of this flows through to the VAS Providers
Other VAS5%Rs 12.50Rs 4,300 cr / $1 billion annualised revenue
Revenue for VASPs17% of the 5% aboveRs 2Rs 750 cr cr / $180 million annualised revenue

VAS Revenues by Category

Category

Penetration

Numbers (million)

Revenue (Rs / mo)

ARPU

Total Revenue (Rs / mo)

VAS Revenue (Rs / mo)

Annual VAS Revenue

Key Players

P2P SMS

35%

80 m

Rs 30

Rs 11

Rs 250 cr

Rs 3,500 cr

CRBT

25%

65 m

Rs 25

Rs 5.50

Rs 165 cr

Rs 30 cr

Rs 350 cr

OnMobile

BhartiTele

Hungama

IVR / Voice Portal

15%

30 m

Rs 20

Rs 3

Rs 60 cr

Rs 10 cr

Rs 125 cr

OnMobile

One97

Cellebrum

Downloads (Ringtones, Wallpapers, Games)

10%

25 m

Rs 10

Re 1

Rs 25 cr

Rs 6 cr

Rs 75 cr

Hungama
SMS Subs.

5%

15 m

Rs 20

Re 1

Rs 30 cr

Rs 6 cr

Rs 75 cr

One97
P2A SMS

15%

30 m

Rs 6

Re 1

Rs 30 cr

Rs 6 cr

Rs 75 cr

IndiaTimes
Misc

Re 1

Rs 50 cr

Rs 5 cr

Rs 50 cr

TOTAL (ex-P2P SMS)

250 m

Rs 12.50

Rs 360 cr

Rs 63 cr

Rs 750 cr

Does this mean that VAS market is ~200mn industry only (though the expected CAGR is ~44% )?

Entities in VAS Value chain

  • Content/Application Owner – cos. like saregama/mauj/Rajshri who develop coyrighted content
  • Aggregator – aggregates content like games/wallpapers/ringtones and distributes it to suit customer needs [players : mauj, hungama mobile, indiatimes mobile etc]
  • software developer – develops applications (like payment/games/middleware etc.) for mobile VAS [players – mchek/July systems/webaroo/affle etc]
  • Technology Enabler – provides the platform that plugs into telco networks and acts like a bridge between aggregator and telcos [players include OnMobile, cellnext. mauj etc]

Operators still dominate the revenue sharing arrangement in VAS [Of the amount paid by end users, 60-70% is kept by operator, aggregator gets 20-25% and content app/owner gets 10-15% of the revenue]

Via Emergic (with permission from Rajesh) and our earlier post on VAS Market Research

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