India houses 919 million mobile subscribers. This huge subscriber base is split in 66:34 between rural and urban users respectively. With falling prices of mobile voice calls and text messages, Telecom operators are turning to additional services which are offered to customers; such services are called Mobile Value Added Services or MVAS.
With diverse demography, lifestyle and consumer preferences amongst urban, sub-urban and rural consumers across the country, MVAS are destined to generate high returns, if deployed correctly.
Internet and Mobile Association of India (IAMAI)-IMRB.
In the last three years, the average MVAS spent per month has risen by Rs 9 to stand at Rs 24 per month in 2012. As of March 2012, there were 48 million mobile Internet users in India.
Rise in disposable income has revolutionized consumer's buying and spending trend towards PC, mobile devices, communication equipments and services. It has catalyzed the trend of smartphone & feature phone which enhances the scope for MVAS with mobile apps and rich mobile content.
Conventional MVAS services like Astrology, Bollywood, Cricket with CRBT, Ringtones, SMS Updates etc continue to dominate the market with 63%share. While The telecommunication industry gets Rs 96 ARPU from GSM subscriber, whereas CDMA subscriber brings Rs 73 ARPU.
The current MVAS consists of CRBT (27 %) and SMS Based application (17 %). On the other hand, the emerging MVAS consist mostly of Mobile Apps (10 %) and Games (8 %).
Mobile internet users in India are growing at the rate of 17 %, which offers great business potential to companies. 3G network in India is at a growth phase currently wherein adoption has slowly started picking up along with MVAS product consumption, mutually benefiting each other to grow significantly. Primarily, 2G platforms are used for most MVAS services at present because of its prevalence and major adoption across India.
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