Study of Awareness of Value-Added Services (Vas) & Its Impact on Telecom Industry.

Topics: Mobile phone, GSM, Mobile network operator Pages: 33 (9441 words) Published: November 18, 2011

The Indian Telecom growth story seems to be accelerating without brakes. But then, with 791 million mobile subscribers there is no reason to doubt the growing telecom market in India. The interesting thing in the Indian telecom market is that the traditional revenue sources for the operators- voice & SMS (Short Message Service) are at rock bottom. The subscriber churn as a result of Mobile Number Portability has also added to the worries of the operators. Operators are betting on Value added services (VAS) as the next big opportunity to sustain and succeed in the market. With the increasing monthly additions in subscribership, Telecom Regulatory Authority of India (TRAI) reports that there are 601 Mn mobile subscribers in India as of April 2010. Considering that the metropolitan and large urban cities have reached a high level of penetration, Tier I & II cities as well as rural towns seem to be next beneficiaries of this technology. Due to this duality, network providers and other industry stakeholders have to provide advanced services to the existing matured users as well as ensure that financial challenged sectors are provided mobile services at affordable costs. Consequently, Mobile Value Added Services (MVAS) which comprise advanced as well as basic services will need to be provided to the divergent mobile subscribers. The revenue through MVAS has been growing in the past years and by the estimates in the study, it is INR 11,680 Crores in size. Traditional MVAS like P2P (Person to Person) SMS and Caller Ring Back Tones (CRBT) continue to be substantial provider of these revenues. These basic services are expected to be large contributors. The stakeholders, however, are not able to garner higher revenues from value added services due to limitations in technological infrastructural platform. Further, in keeping up with the competition the call rates have been dropping, resulting into low overall Average Revenue per User (ARPU). With the expectations of advantages that 3G could provide and the technological innovations, the anticipations towards improved service delivery abound. In order to ensure a high growth in MVAS revenue it is important to understand how much aware are the customers about the mobile value-added services, it is also necessary that newer avenues are explored to provide user-centric content and application services. Such as forecasting is not unfounded as there are innovative offerings available for users. However, the need is for identifying specific niche segments that require certain specialized delivery. These segments could be among the urban or non-urban users. In addition to such improved delivery, it could serve the industry well, if a user-centric approach is adopted in providing services that are technology-agnostic. Long term growth will be ensured if detailed learning’s from user experiences are examined continuously in providing innovative services. PROJECT TITLE: Study of awareness of value-added services (VAS) & its impact on telecom industry. PRIMARY OBJECTIVE:

To understand how much aware are our subscribers about the value-added services (VAS) and to know consumer needs and wants and their experience of VAS. •To know whether subscribers are ready for 3G, Mobile advertizing and Mobile apps. •To understand the mobile VAS market growth and reaching the estimates that has been forecasted. SECONDARY OBJECTIVES:

To understand the Value-added services comprising of:-
SMS, Video Calls, MMS and Email.
Information VAS comprising of news and alert based services. •Entertainment VAS comprising of caller tunes as it is expected to be the most profitable VAS segment in recent years. •Regional entertainment based VAS services as it is expected to be in big demand and VAS providers would need to focus on localization and multi-lingual capabilities.

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