Trai To Script Vas Norms

[Honest 836]

TRAI to script VAS norms

29 May, 2008, 0252 hrs IST, TNN

NEW DELHI: After voice services, telecom regulator TRAI has now decided to lay down regulations for value-added services (VAS). Presently, the VAS providers are neither regulated nor licensed and mainly they act as channel partners of telecom operator, who by virtue of being owners of the network have near monopolistic advantage. All telecom services other than voice, which include SMS, music, entertainment, mobile commerce, GPRS amongst others are classified as VAS applications.

The move has been welcomed by VAS operators who have constantly alleged that telcos failed to share revenues with them, and had been demanding that the regulator set up a framework for a revenue sharing system where the providers, aggregators and owners of the content do get their due share in a transparent manner.

The TRAI move will also imply that VAS providers will be brought under a licensing regime. Justifying its move to intervene in this segment, TRAI said that the VAS industry in India is at nascent stage and does not have a proper process or common benchmark or code of practice, while also adding that the sector lacked transparency.

Besides, TRAI has also pointed out that regulation will help address a host of concerns associated with mobile commerce services such as mobile banking, mobile payments and money transfers through the mobile.

The guidelines will also be extended to monitor VAS content. At present, about 10%-14% of the telcos’ total revenues come from VAS. With telcos now shifting their focus towards other high-end VAS applications, non-voice revenues are expected to cross 30% of the operators’ total revenues in the next 5-7 years.

[Chirag Thakkar 4]

This is good....hope they get some kind of price regulation as well....like Messages and Multimedia stuff.....They loot customers like crazy......specially contests..

[Honest 836]

Mobile VAS cos split over licensing plan

5 Jun, 2008, 0810 hrs IST, TNN

NEW DELHI: The rift among the Rs 4,500-crore Indian mobile value-added services (MVAS) industry players is now out in the open after Trai launched its consultation process last week to licence the industry and resolve major issues such as revenue sharing with mobile operators.

Some MVAS players feel that licensing of the industry will solve major issues such as opening of the access pipes and revenue share arrangements between operators and VAS providers. But others feel that the licensing will cripple the industry in the long run.

CanvasM CEO Jagdish Mitra says, “Licensing criterion like a certain amount of turnover or huge fees may deter innovation and this business thrives only on creativity. Though in China and European markets, the VAS industry is regulated and growing very well, in India there should be guidelines from the government and not regulation.”

According to Trai, MVAS is expected to cross 30% of the mobile telecom service provider’s revenue in the next 5-7 years. Currently, the revenue from MVAS is over 10-14% of the total revenue of mobile service providers.

Players like Star TV are also opposed to licensing. “Licensing may hurt the industry as we are trying to deregulate most sectors in the economy. It will be very difficult too because the MVAS industry is highly integrated with web portals and to set up a website one does not need a license. But VAS providers need to have open access to the pipes (bandwidth) of operator. They should just charge for then bandwidth and leave the pricing to the VAS provider,” says STAR senior VP (Wireless Interactive) Viren Popli.

On the other hand, there are some supporters of the licencing regime as well. “Licencing will be good for the industry. It will standardise the industry and start a journey towards resolving major issues with operators like revenue sharing. Regarding revenue share and licence fee, there is always some sacrifice involved if one has to get recognition for the industry,” says People Infocom (Mauj Telecom) CEO Manoj Dawane.

[Honest 836]

Mobile value-add cos grope in dark for right numbers

26 Jun, 2008, 0000 hrs IST

NEW DELHI: Lack of real time IT systems to capture actual mobile value added services (MVAS) usage is a cause of major distrust in the Rs 4,500 crore MVAS industry. The distrust, in turn, is leading to arguments and revenue leakages among the MVAS aggregators, content providers and developers. The content owners have the right to the IP of the content. The problem originates from the lack of proper management information systems (MIS) reporting in the industry.

The owners of content (like ringtones, songs, wallpapers, games, videos) book their revenue generated by mobile content download at the end of every month. For this, they require the download figures provided by the content aggregator, who refuses to share the content figures as they are not available from the operator.

The Telecom Regulatory Authority of India (Trai) has also taken cognisance of this and has issued a consultation process to resolve the issues. CII has formed a consultative committee on VAS related issues. In its consultation paper, Trai has noted that currently, the VAS vendor is reluctant to share its online MIS with the content owner since it’s unable to estimate, with any reasonable accuracy, the final MIS that it may have to settle for with the telecom operator, after reconciliation of traffic figures. This has resulted in a lack of transparency — with some large content publishers doubting the integrity of VAS vendors.

“We are aware that there are contentious issues with regard to the level of transparency that is currently being followed in the industry. CII is working with all the stakeholders concerned to bring about a transparent and mutually acceptable MIS and reconciliation mechanism,” says Vikram Tiwathia of CII. According to CII, there should be a formal process of reconciliation of MIS for difference above 2% — including the right of both parties to seek arbitration proceedings, if necessary.

An Indiatimes spokesperson said: “The problem can be resolved if there is 100% real time MIS reporting available on the web on a minute by minute basis. It can also be resolved if all content is routed through a central nodal agency.” Says Mobile2Win founder and country head Rajiv Hiranandani “Content aggregators don’t report correct MIS figures to content owners for two reasons. One, they don’t know what MIS figures the operator will report to them which is sometimes as low as 80% of the correct MIS figures. Two, some VAS vendors are not honest and try to make money by reporting lower figures, creating a distrust in the industry.”

“Sometimes the telecom operators report the MIS figures after 2-3 months, which creates a problem for VAS aggregators and content owners who have to book their revenues,” says Sanjit Chatterjee, director global sales at FlyTxt. “Often the settlement process stretches to 9-12 months, which leads to lot of revenue leakage,” he adds.

Major VAS players and aggregators in the country are Indiatimes 8888, Mobile2Win, OnMobile, Hungama, Star TV, Sony BMG, Mauj, T-Series and Eros. The revenue through VAS is expected to cross 30% of the mobile service provider’s revenue in the next 5-7 years, according to Trai. VAS content circulated across the 270 million mobile subscribers’ handsets in India include songs, movie clippings, games, mobile TV, jokes, ringtones, caller tunes , reality show downloads, cricket score, match clippings and cricket commentary.

[Honest 836]

'Give level playing field for VAS players in line with telcos'

1 Jul, 2008, 1953 hrs IST, PTI

NEW DELHI: The Internet and Mobile Association of India (IAMAI) has sought a level playing field between the telecom operators and the value added services companies for the growth and sustainability of mobile telephony in India.

IAMAI has made this submission to the Telecom Regulatory Authority of India in response to the recent consultation paper on mobile value added services industry issued by TRAI, the association said in a release.

The association said value added services (VAS) industry has contributed significantly to the growth and adoption of mobile telephony in India as well as to the revenue of the telecom companies in the last five years. Hence, it is imperative to have a level playing field between large telcos and small VAS companies.

Among other suggestions, IAMAI has asked for a faster process of obtaining shortcodes, standardisation of the terms and conditions of access and interconnection and a transparent revenue sharing model between operators and VAS players.

It also said that for MIS and reconciliation, a standard mechanism should be established. A variation of not more than 2 per cent between the service providers to be accepted as a standard and payments should be made within 60 days.

In its submission to the regulator, IAMAI has also said that there should be some additional obligations on the current licensees in terms of maintaining a level playing field, alternatively, the MVAS industry should be treated as the single largest users of telecom services and their rights be protected, the release said.

[Honest 836]

Value added service providers oppose regulation

11 Jul, 2008, 2121 hrs IST, PTI

NEW DELHI: Mobile value added service providers on Friday opposed any move by the government to regulate the booming industry, which constitutes 10 per cent of the revenues of cellular operators.

In the TRAI open house today on 'Growth of Value Added Services and Regulatory issues' VAS providers were unianimous on their stand of 'No licence regime and no regulatory intervention'.

Meanwhile, telecom regulator TRAI has started the process of consultation in this regard.

The regulator had invited industry stakeholders to an open-house discussion on various issues pertaining to value aded services (VAS) and what can be done to make the industry more organised and sustainable.

"AUSPI strongly feel that there should be no or very minimal regulatory intervention on this issue," said SC Khanna, Secretary General, AUSPI, CDMA Operators Association.

The Cellular Operators Association of India (COAI) and other telecom operators also held similar views.

The main issues that discussed were whether there should be any licensing structure besides the revenue sharing model between telecom operators and the VAS players. "We do not want any licence obligation on the VAS players," said TV Ramachandran, Director General, COAI.

VAS include facilities such as ringtones, wall paper downloads, information services, music downloads.

On deciding a feasible revenue sharing model, however, access providers and the VAS players have different opinions. The operators' representatives are of the opinion that the existing model is working fine and there should be no defined revenue sharing model.

[Honest 836]

VAS industry to touch Rs 20,000 cr by 2015: Report

11 Jul, 2008, 2200 hrs IST, PTI

NEW DELHI: Riding high on the success of music, ringtones and other innovative multimedia applications, the value added services (VAS) industry is expected to touch revenue of Rs 20,000 crore by 2015, says a report.

The industry, which has been valued at Rs 5,000 crore at present, will see a major growth in the music and mobile gaming segments and could reach Rs 20,000 crore, a report by PricewaterhouseCoopers said.

According to the report, the industry is primarily driven by SMS feature, that has about 44 per cent share. However, new applications like ringtones and RBTs, GPRS, CLI, would accelerate the growth.

The roll out of 3G services would also support the growth of the industry as 3G customers are more willing to use a variety of multi-media services than 2G customers, the report said.

At present, music and games are downloaded on GPRS or 2.5G platform.

One of the factors that anticipate a huge market for VAS in India is the decreasing age profile of mobile handset owners and falling costs of cell phones with ever richer features, the report added.

[Honest 836]

VAS companies seek new short-code rules

12 Jul, 2008, 0129 hrs IST, ET

NEW DELHI: After seeking telecom regulator Trai’s intervention regarding the revenue-sharing platform with network operators, mobile value-added service providers (VASP) are now demanding amendments to the short-code allocation structure, contrary to the network operators, who feel the current framework is appropriate.

Short codes or short numbers are special telephone numbers like 8888, which are sold to a third-party client for some keyword and a specific period. The entry barrier is high owing to high initial deposit demanded by operators.

Internet and mobile association of India (IAMAI) in its response to a consultation paper released by Trai said, “A short-code assignment system needs to be put in place that is integrated across all operators. That is a single number should be assigned to every content provider, and this code should work across all Mobile telephone service Providers.”

Currently, telecom operators allocate the short codes, which is in compliance with the framework of national numbering plan by Department of Telecom (DoT).

Cellular operators authority of India (COAI), the representative body of cellular operators, on the other hand said, “the existing regime wherein the short code is allocated by telecom operators as authorized by DoT within the framework of National Numbering Plan is working well and should be continued with.”

Meanwhile, ITC pointed out the challenges of high costs involved in owning and transmitting a short code in the current industry environment, thereby placing a high entry barrier in mobile VAS.

[kshah 452]

VAS industry to touch Rs 20,000 cr by 2015: Report

11 Jul, 2008, 2200 hrs IST, PTI

With new per KB charges of reliance it will reach to Rs. 30000 crores

[Honest 836]

^^^

Ha Ha Ha, very correct my dear Kalpak. It will even cross Rs.30,000 crores.

Regards.

[Honest 836]

Telcos oppose move to frame norms for value-added services

15 Jul, 2008, 0034 hrs IST, ET

NEW DELHI: Telcos have opposed any move by the government or sector regulator Trai to regulate or frame guidelines for the value-added services (VAS). Telcos want light touch regulation, where they only have to inform the department of telecom (DoT) before launching a service. VAS accounts for about 10% of the service providers’ revenues. Trai will soon take a call on whether VAS should be regulated in India.

“We believe that the current licensing obligations for provisioning of VAS are appropriate and adequate. So, there is no need for imposing any further obligation on the telecom operators,” the Cellular Operators Association of India (COAI), the body representing GSM players, said in its communication to Trai. Ditto to the CDMA industry body—Association of Unified Service Providers of India (AUSPI)—which said: “Once DoT has been intimated about a VAS by a service provider and service provider also informs about the availability of Logical Information Machine (LIM) with a self certification regarding compliance to licensing terms and conditions, service provider should be allowed to offer service without awaiting any additional or formal clearance.”

At the same time, the COAI has pointed out that delay for obtaining a security clearance, which at times stretched for years was acting as a major bottleneck and hindrance for the growth of VAS. “So as to give a further impetus to VAS and to preserve the innovativeness of this segment, it is desirable and in fact even necessary that the security clearances be granted and service approved in a time-bound manner, the GSM body added.

VAS operators, however, do not share the telcos’ viewpoint and have demanded that the regulator impose guidelines for the sector. For instance, Times Internet, one of the leading VAS providers, has said that the regulator must ‘push for transparency on Management Information System (MIS) by mandating mobile operators to share data about downloads, usage etc on VAS services’. Internet and Mobile Association of India (IAMAI), the representative body of content providers, also backed the move to impose additional obligations on telcos. The association recommended regulations for telecom operators regarding availability of short codes, access and interconnect norms as well as payment structure.

Net Core, in its response to Trai, suggested that voice minutes and SMS capacity should be sold in wholesale to the VASPs in order to provide level-playing field.

[Honest 836]

Indian mobile VAS market to hit $2bn in 2008: PwC

16 Jul, 2008, 0006 hrs IST, ET

NEW DELHI: Following a dip in revenues from voice-based services, mobile value-added services (MVAS) is all set to see a phenomenal growth across the world. According to a report by PricewaterhouseCoopers (PWC), the Indian mobile VAS market is all set to grow to $2 bn in 2008.

Currently, mobile VAS in India accounts for 10% of the operator’s revenue, which is expected to reach 18% by 2010. The worldwide spending on MVAS, including mobile music, mobile payment and mobile advertising will reach $55.6 bn by 2011, the report added.

Mobile payment, which currently accounts for just 1% of the data services market, is set to add 70.9 mn users by 2010, the report states. According to the report, the key driver for the growth of VAS in mobile payment segment will be demand from rural and semi-urban areas, where a huge gap exists in banking infrastructure. Mobile wallet will also replace plastic cards (credit cards) in coming years, the report added.

"India has a high proportion of mobile subscribers to total telecom subscribers, driven by the faster wireless rollout, inexpensive handsets and low cost prepaid cards. Here, money transfers, driven by lack of banking infrastructure is a key service need," the report said. Currently, about 44% of VAS revenue in India is driven by short messaging service applications. The youth segment will also continue to drive the market, particularly in the entertainment MVAS.

The mobile music segment is also set to fuel up with user spending on mobile music expected to increase to $32.2 bn in 2010 compared to $13.7 in 2007. While the revenue from mobile gaming is expected to grow to $9.6 in 2011 compared to $1.8 bn in 2007.

Mobile advertising, which is an important VAS segment, is expected to grow consistently to reach a valuation of $12.8 bn by 2011, compared to $2.7 bn in 2008. The growth in this segment will be fuelled predominantly by rollout of 3G networks, IPTV and high- end gaming on mobile phones. The size of mobile advertising in India is miniscule.

However, analysts believe it has potential to grow at 200% a year, giving operators a new revenue source. Currently, the VAS market is governed by short message service (SMS), Interactive voice response (IVR) and WAP portal platforms, delivering applications such as entertainment, advertisement, gaming and news.

[Honest 836]

IMImobile in AlwaysOn list

Hyderabad, July 18

Value-added services provider for mobile operators, IMImobile, has announced that it has been selected by AlwaysOn, as one of the AO Global 250 winners.

The 6th annual list from the US company recognises the companies and industry leaders demonstrating significant market traction and developing disruptive technology. IMImobile’s inclusion in the list is based on innovation, market potential, com mercialisation, stakeholder value and media buzz.

According to The CEO of IMImobile, Mr Vishwanath Alluri, IMImobile is the only Indian company to be selected in the mobile sector-

[Honest 836]

Ringing Volumes: Caller tunes may soon ad jingles to cells

21 Jul, 2008, 0122 hrs IST, ET

NEW DELHI: Next time your mobile rings it might be a call-cum-commercial break: Lifebuoy hai jahaan tandurusti hai wahaan....LIFEBUOY! Advertisers are now gearing up to offer ads with such jingles. This latest mode to invade the advertising ecosystem is called AdRBT (Ad Ring Back Tone). Via AdRBTs, each time a person calls he will hear an ad instead of a ring tone.

Indeed, mobile advertising is becoming bigger and better each day not only in value but also when it comes to introducing new forms of advertising. Mobile value-added services (VAS) company OnMobile is going to launch an audio advertising platform called AdRBT for operators.

Says OnMobile mobile marketing and m-commerce head Debraj Tripathy: “We will launch AdRBT with other operators both within and outside India. We believe that it’s a potent advertising option and provides a win-win solution for advertisers, operators and consumers. The brands that have approached us are Kwality Walls, ITC and Cadbury’s.” Mobile advertising market, valued at Rs 40 crore, is slated to grow to around Rs 150 crore by 2009-end.

Says Mobile2Win co-founder and country head Rajiv Hiranandani: “AdRBTs are part of the entire mix when it comes to mobile advertising. This product can be seen as having the maximum reach as compared to other ad products that include advergaming, adfunded content and WAP advertising.”

Here’s how AdRBTs work: When a caller calls an AdRBT subscriber he gets to hear an ad instead of the normal ring (until the called party answers the call). When the ad is being played the caller has the option of pressing “#” as a response to hear the product/offer being advertised. This key press is recognised and remembered by the system. Once the call ends the system triggers an action such as delivery of the offer through a coupon or automatic call back giving information about the product or a WAP URL push, etc.

There are a few challenges too. One97 Communications director Rajiv Madhok says: “Every ad is not suited to every caller, hence it’s necessary to choose the ad according to the caller. Caller profiling is important. But profiling is limited within the operator, that is, Airtel will have profiles of its own customers and not those using any other network. Also, it’s difficult to judge the number of exposures as it solely depends on the time taken by the subscriber to answer the call.”

But the biggest advantage of AdRBT is that it’s non-intrusive and has a mass reach. Mr Debraj believes that from advertisers’ perspective, this is an in-call advertising option. Hence it provides a relevant and captive audience to advertisers. It has the capability to elicit instant response, so advertisers know what is working and what is not.

RCOM created one of the first of its kind AdRBTs for the Reliance Power IPO, which hit the markets in January 2008. Says an RCom official: “Any mobile, landline or ILD customers calling RCOM subscribers during that period heard the Reliance Power jingle as the caller ring back tune (CRBT). Reliance Power jingle was estimated to have been heard 800 million to 1000 million times, which is 3-5 times over other traditional media reaching millions of people across the globe.”

Tata Teleservices has been active in using AdRBTs. One of their campaigns was with Parachute advanced hair oil, which along with other media used CRBT to promote the balladic flavour of their jingle: Tum Ho Gorgeous Hamesha.Company president (VAS) Pankaj Sethi says: “The campaign saw high recall, customers craved for the free jingle and we targeted this for up market RBT users in Delhi and Mumbai circle for Parachute Advanced.”

Mr Madhok feels that people might not subscribe to AdRBTs even if they are free. So, in order to woo people, various combinations have to be tried. It can be either free SMS or a caller tone and AdRBT combination at a discount. It can also depend on the number of incoming calls received by a subscriber.

Agrees Mr Sethi: “During IPL, we saw over eight lakh downloads of the jingle Cricket Ka Karmyudh in 45 days. We even gave prizes like cameras and allowed users to enter an SMS contest on IPL to win merchandise.”

AdRBTs are still a new medium for advertisers and VAS companies say that plan differs for different products. Mr Debraj says: “AdRBT can be used by different kind of brands for different purposes, for example FMCG brands can run a brand campaign on AdRBT while durables could run a special offer. Local retail, on the other hand, could run special time-bound promotions. A TV brand can promote a special offer of let’s say a 20% off.”

Mr Madhok feels: “The products best suited for AdRBTs are those belonging to FMCG category as there ads are interesting and easier to connect with.” Hopefully call receivers will agree.

[Honest 836]

Check inbox: SMS rates may fall

22 Jul, 2008, 0029 hrs IST, ET Bureau

NEW DELHI: SMS charges are likely to come down. Last week telecom regulator TRAI summoned all telcos and sought an explanation on why SMS tariffs continue to remain high.

Sources in TRAI said that if operators failed to offer ‘satisfactory responses’ within the next couple of days, the regulator will step in to specify lower SMS charges.

However, an executive with a telco who was in that meeting said TRAI had not issued any ultimatum to telecom service providers. “The regulator only wanted to know why SMS rates continued to remain at the same level when local and STD tariffs have gone through several rounds of tariff reductions in the last two years. Some operators are likely to announce a reduction in SMS rates,” the executive added.

TRAI had decided not to intervene in SMS tariffs in 2006 and had asked operators to reduce the rates in a gradual manner. At the same time TRAI said that it will act ‘in case there were competition issues in the retail market and if consumer interest was adversely affected’. TRAI sources said that it is being forced to intervene now because both these factors are in play and added that despite several warnings, operators have failed to reduce SMS tariffs.

ET has also learnt that TRAI is particularly concerned about premium SMSes, whose tariffs range from Rs 2-10. The regulator has listed out three issues on which it wants immediate action. First, the tariffs for premium SMSes cannot be multiple times higher than normal text messages since the nature of services offered in both cases were the same. Second, while the volume of premium SMSes have witnessed a massive increase in the last two years, telcos have cashed in rather than voluntarily reducing the charges. Third, many customers are not fully aware of premium SMS rates as their tariffs are not ‘widely publicised’.

An executive with another telco said that the charges for premium SMSes are high because revenues earned through them are often shared with the content provider, broadcaster and other stakeholders. “We will present our case to the TRAI. We will also point out that all operators offer several bundled schemes where SMS rates are very low,” the executive added.

With mobile tariffs on a downward spiral, customers are increasingly making a direct call rather then send a text message. Latest figures released by sector regulator TRAI reveal that customer preference for texting in India has hit an all-time low. From close to 8-9% of the operators’ revenues at one point, texting now provides GSM players with 4.3% of their total revenues, while for CDMA operators, it is a mere 1.8%.

According to TRAI, an average GSM user sent about 26 SMSes a month in the quarter ended March 2008, compared to 28 SMSes a month in the previous quarter (October-December 2007), 32 a month in the July-Sept quarter, 35 in the April-June quarter, 39 in the Jan-March quarter and 48 in October-December 2006 quarter.

Ditto on the CDMA front—the number of outgoing SMSes by customers using this technology platform has fallen to 16 per month after remaining flat at 17 per month for nearly half a year. Prior to that, it was 20 per month in the April-June quarter and 24 in the January-March 2007 quarter.

[Honest 836]

Content is king: Telcos going all out to firm up deals for content

5 Aug, 2008, 0124 hrs IST, ET Bureau

NEW DELHI: With all telcos already having completed 3G trails, operators are now going all out to firm up deals for content. This is because the availability of content will be the most crucial factor that will determine if there are takers for 3G services.

Market watchers agree that content will be bigger driver for 3G than even handsets. This is because about 15% of the India’s close to 300 million mobile phone users already have 3G-enabled handsets. In comparison, telcos are looking to migrate about 10% of their subscriber base to 3G services by 2010.

Little wonder then that all telcos have got cracking on the C-side, that is content. State-owned BSNL, for example, has floated multiple tenders for exclusive tie-ups for services such as entertainment, TV schedules, sports, movies, serials, travel, downloads, astrology and cricket, amongst others.

India’s largest mobile player Bharti Airtel’s $100-million project with IBM for developing a service delivery platform (SDP) has gone fully operational. With this, all content and application developers can just plug into this platform to reach Bharti subscribers. CDMA-majors like RCOM and Tata Teleservices are also learnt to be in talks with content majors.

All leading operators are also in talks with Nokia for introducing the handset maker’s Ovi series here. Ovi is a single-click application that allows users to experience the complete range of internet services—e-mail, chat, downloads, music, navigation, entertainment and games, among other services. “We are working with key operators and content providers towards offering consumers newer experiences in terms of navigation, gaming and music, among others, on our existing as well as future devices. 3G will further provide a fillip to our internet services under the Ovi brand,” said Nokia India country head-GTM Vineet Taneja.

Cellular Operators Association of India (COAI) director-general TV Ramachandran points to the example of Japan’s NTT DoCoMo to highlight the important of content to drive 3G services: “NTT is a pioneer of 3G services. The company got into multiple alliances for content and ensured that the offerings for its customers were very rich. Such was the demand from its services that this model has become a case study the world over. Even in India, unless you provide attractive applications, nobody will use 3G services.”

Bharti Airtel’s president for mobility Sanjay Kapoor said the company was looking at exclusive deals both for content and also on the handset side. “The SDP platform will give us a strategic edge.” According to Bharti executives, the company, which so far operated numerous content platforms, has migrated these to the SDP. Going forward, all future applications that Bharti plans to introduce, such as mobile money transfer, mobile wallet and other value-added services, will be plugged into the SDP platform.

This is because SDP will cover integrated portal, content management, digital rights management, messaging gateway and transcoding systems. Importantly, for VAS and content providers, this will also be the first instance in the country where reconciliation and settlement process will also be automated.

Vodafone, on the other hand, is working towards ensuring that the content it provides is upgraded on to its 3G networks as and when it’s rolled out. “We have had an ‘edge’ network (2.5G or 2.75G) in India for the last four years. We are looking at adapting this content along with new offerings to the 3G platform,” explained the company’s marketing head Harit Nagpal.

For BSNL, this marks the first time the PSU is going in for multiple deals simultaneously to cement content offerings. BSNL is slated to launch 3G services by the year end, months ahead of private players. Unlike the Bharti model, the PSU has directed all potential partners to set up the platform to operate the services they plan to offer.

[Honest 836]

Mobile VAS players line up offerings

5 Aug, 2008, 0126 hrs IST, ET Bureau

NEW DELHI: Gear up for 3G life. A far more meaningful retailing, socialising, banking, blogging, movie watching and more will come your way via 3G mobile services. The mobile value-added services (MVAS) players are going all out to offer content, which, to say the least, will change social habits forever.

So, be it your favourite Saas Bahu serial last night or Sachin swinging his bat, you can catch it all up while on way to office. Or, you could make a video call to your boss to tell him you are caught in the traffic jam (some things just may not change!). Be it TV, matrimony, classifieds or job interviews, most web content may be ported to the mobile phone, once 3G kicks in by mid-2009. The $2-billion MVAS sector is now gearing up for just that.

The 3G bonanza, which will offer very high-speed mobile wireless services (@384 kbps while in a moving car to 2 mbps while walking or stationary) is all set to kick off a new ecosystem in mobile advertising, mobile TV and mobile content, say industry experts. “We have started developing ads for mobile. Once the industry matures in 3-4 years, we may see live and delayed telecasts and advertisers buying spots exclusively on the mobile. The morning 8-10.30 am alongwith evening 6-8 pm slots when office goers commute, may see huge jump in mobile ad revenues. There will be a plethora of free ad funded `mobisodes’ (TV episodes on handhelds) and multi-player games. A few mobile TV rating agencies may also emerge,” says Rajiv Hiranandani, co founder and country head of Mobile2Win.

Currently, there are about 30 million GPRS phones in the country with an estimated five million people already possessing 3G phones. But still, the cost of 3G phones will have to come down as a basic 3G phone in the market currently retails for about Rs 7,000-8,000. Most Nokia N-series and many Sony Ericsson and Samsung phones are 3G compatible. Sensing the opportunity, many MVAS companies have already developed 3G content.

Delhi-based One97 Communications has developed video ring back tones (VRBTs). In video ring tones, a person dialing a number can watch a video which a receiver has chosen to play on his screen. He can select from a number of video options. “We have already launched VRBTs with the 2G platform but expect it to become robust once 3G kicks in. We will also see a surge in video SMSs where a person’s camera will record his video in a SMS and send on the network, for a higher cost obviously. Video Greetings, mobile tourism and m-classifieds will also see a boom,” One97 Communications CEO Vijay Shekhar Sharma says.

So, you may be able to see a video of an apartment or a car you are planning to buy on your mobile screen. It will definitely give a boost to the stagnant m-commerce market. Matrimony and dating sites may also get a boost where people will be able to see each other via the mobile, before meeting. 3G is likely to give a sigh of relief to gaming experts too. “We were unable to launch many high-end games. With 3G, we will be able to launch our most popular games overseas like Fifa Online, Need for Speed and Harry Potter in the Indian market. 3G games will ofcourse be priced at a premium,” says Indiagames CEO Vishal Gondol. The average cost of a mobile game download in India is about Rs 50 which goes up to Rs 99 for a high-end game.

Multi-player Games in the passive category (like chess) and Active (like tennis, cricket, soccer) will arrive in India with the arrival of 3G, says Mobile2Win’s Rajiv Hiranandani. “We will soon be launching massive multi-player online games for mobiles in India. Our largest revenue globally come from VCAST, our gaming platform which Verizon has launched overseas,” adds Indiagames’ Gondol.

TV entertainment companies are also expecting big bucks. “3G is an exciting opportunity to port rich media on the mobile. Live and delayed video along with movies and news may be ported to the mobile in future. We will also see a host of enterprise applications like web conferencing and downloading of heavy presentations via mobile,” says Viren Popli of Star TV.

Still there will be challenges in terms of adoption. “Though we have a large number of people having GPRS phones, those services have still not taken off in a big way. Operator pricing will be critical. Whether the service is free or available at Rs 99 or Rs 599 will be critical adoption factor,” says a Indiatimes 8888 spokesperson.

Currently VAS forms about 9% of telco revenues. 3G may help increase average revenue per user for operators and MVAS players. It could also kick off a whole new boom in terms of opportunities for small IT companies, mobile video production houses and increase the telecom GDP, if its priced affordably. Perhaps ad funded free mobile video content may do the trick.

[Honest 836]

Raja pulls up BSNL on slow growth of value added service biz

8 Aug, 2008, 1239 hrs IST, ET

NEW DELHI: Concerned over the slow growth of BSNL, Telecom Minister A Raja has asked Department of Telecom to work out a mechanism where important decisions could be expedited fast to drive more revenue for the PSU.

"I am deeply concerned over the slow growth in business of BSNL in spite of regular review meetings with the officials of BSNL. It is a serious matter and it has to be monitored and reviewed by the Secretary (Telecom) on regular basis," Raja said in a letter to Telecom Secretary Siddhartha Behura.

DoT being the nodal ministry can ask the PSU to speed up decisions and the minister has asked the Secretary to structure a device of regular monitoring of such proposals in DoT itself through the Government's nominee on BSNL board.

Raja's ire has emanated from BSNL's slow pick-up on the Value Added Service front in spite of financial incentives and business leverages. The Minister feels in the competitive environment there is scope for increasing revenue from Value Added Services and BSNL can get much more revenue from VAS if it is able to take quick decisions.

"A large number of proposals for VAS on revenue sharing basis in which no investments is required from BSNL are pending with the PSU for long for decision making. BSNL may be directed to look into such proposals on priority and in time-bound manner," Raja said.

Raja's concern comes on the backdrop of private telecom operators drawing significant revenues from VAS and in a cheap tariff scenario, revenues from other services like VAS holds potential for a robust growth.

[Honest 836]

Bharti Telesoft plans high-end services for operators

10 Aug, 2008, 1303 hrs IST, PTI

MUMBAI: With the kicking-off of the 3G spectrum, Value Added Service (VAS) players are gearing up to effectively leverage the technology.

Global VAS solution provider, Bharti Telesoft, considers 3G an opportunity that would allow players to introduce high-end services not available earlier.

"With third-generation guidelines in place in the telecom sector, the business metrics of telecom players in India is all set to undergo a change," Bharti Telesoft Chairman Manoranjan Mohapatara told PTI.

The launch of 3G services in India is expected to create a shift from volume-based to high-end markets, he said.

Mohapatra described 3G as an opportunity to port rich media on the mobile with operators being able to provide innovative and enhanced services due to greater availability of bandwidth.

"It would also act as a revenue-generating tool for operators. Besides, there would be increased services of Internet on mobile phones," Mohapatra said.

Once the auction procedure is over, operators would partner with VAS players to offer high-end services to their subscribers.

Scenting a huge opportunity in 3G spectrum, Bharti Telesoft is already in talks with a few leading operators, Mohapatara said. Content would be a bigger driver for 3G than handsets, he said.

[Honest 836]

Indian VAS cos betting big on iPhone applications

26 Aug, 2008, 0039 hrs IST, ET

KOLKATA: Indian mobile phone application developers are trying to come up with unique applications for the iPhone 3G, which was launched in the country on August 22. The likes of Bharti Telesoft, CanvasM, OnMobile, Mauj Mobile and ADAG’s JumpGames have initiated work to develop business, entertainment and utility applications for Apple’s iconic device.

The VAS players plan to bundle and sell these applications through both the operators and Apple’s application platform. The move has been triggered by the fact that iPhone subscribers are usually heavy users of data applications due to the gadget’s features like the multi-touch interface, accelerometer, motion sensor and 3-D graphics.

“Since iPhone application development has started recently, there are scarcely any developers available worldwide. We are developing applications that are customised for Indian subscribers and newer ones for enabling financial transactions, mobile entertainment and games,” said Jagdish Mitra, CEO at CanvasM Technologies.

CanvasM is in talks with major financial institutions from France for replicating the mobile commerce application suite for the iPhone. Applications are also aimed at adding newer functions. “Since iPhone doesn’t support MMS, we are going to release a MMS client for the device by December. The operators too are planning to offer unique applications,” said Bharti Telesoft CEO Manoranjan Mohapatra.

Analysts feel applications tend to improve the operator’s margin and ARPU. “However, a lot of these are also available free. Indian developers will have to also create such an eco-system in India,” feels IDC Asia Pacific research manager Aloysius Choong.

The major focus seems to be on games, since iPhone’s technology supports them best. Gameloft has launched six iPhone games and plans to add eight more by December. “We will release 2-3 games for the iPhone. And once 3G arrives in India, the market for iPhone applications is expected to explode,” said Salil Bhargava, CEO, Jump Games, a Reliance ADAG venture.

Developers plan to monetise their iPhone applications by making them compatible with other phones. “An integral part of creating any mobile application is to render it compatible with most of the handsets,” said Mauj Mobile CEO Manoj Dawane. The companies also plan to sell such iPhone applications across the globe by developing them as per iPhone’s developer programme.

[Honest 836]

Future's bright for video streaming, voice SMS

Economic Times l 11 Oct l New Delhi

The first wave of Mobile VAS companies offering regular ringtone and music downloads seems to be over. Venture Capitalists like Canaan Partners, Draper Fisher Juvertson, Helion, Nexus India among others are more interested in innovative product offerings in this space like mobile payment options, advertising, voice-based SMS and satellite video streaming.

According to Venture Intelligence, 2007 saw nine deals ($41 million) in the mobile VAS space, while the first 9 months of this year have already seen seven deals worth $91 million. VCs, whom ET spoke to, are bullish on the segment considering the 20% y-o-y growth it has seen. Mobile VAS has a $700 million market today, which is expected to hit $3 billion by 2012.

“Ringtones and ringbacktones offer low revenues. VCs today are looking at applications that are independent third party innovations and are not dictated by operators,” said Pramod Saxena, MD, Oxigen, a mobile commerce player in which Microsoft had picked a 36% equity investment earlier this year. The more niche the service, the better are the chances of it being noticed. One97 Communications is doing just that. “We are looking at innovations and intelligent applications compatible with 3G in India,” said Vijay Shekhar Sharma, managing director, One97 Communications.

The Indian government will auction 3G spectrum later this year and that is set to trigger a new war in the Mobiel VAS segment with newer players wanting to join the fray to offer high-end content. Looking at the future potential, Helion Partners and Silicon Valley Bank have already invested in One97.

Draper Fisher Jurvetson (DFJ) has considerable experience in VAS because of their investments in the US. In India, they had invested in two mobile VAS companies, mGinger and mChek in late 2007. mChek provides an on-demand solution for mobile payments. “We are looking at companies with some differentiation. We need to see if the model is scalable even without a mobile operator and the monetisation aspect,” said Sachin Maheshwari, principal, DFJ. “Indian VAS companies haven't yet developed quality content around areas such as superstition, religion and patriotism which have a huge appeal in India,” says Prashant Singhal, national telecom industry leader, Ernst & Young.

Canaan Partners has led an investment of $5.25 million in Cellcast Asia, a digital content provider and has plans to invest in a number of other innovate VAS providers in the future.

One97 received Series A funding of $8-10 million from SAIF Partners late last year and OnMobile raised $27.8 million in a second round from a clutch of investors like Goldman Sachs, Deutsche Bank, and Polygon Investment Partners.

[Honest 836]

VAS players rush to Africa, Middle East

Economic Times l 6 Dec l Ahmedabad

African and Middle Eastern countries are becoming new playground for the Indian mobile value-added services (VAS) industry. With improvement in telecom infrastructure, mobile markets in these countries are growing at a fast pace, inspiring Indian VAS players to explore new markets there. The markets are also attractive because operators are able to charge a mind-boggling 250 times more in these countries than what they charge in India.

Services typically aimed at enriching livelihood and enhancing lifestyles - mBanking, mRemittances, SMS-based information, entertainment-based services and tailor-made initiatives for rural markets -are being offered in the new markets.

``Africa and Middle Eastern mobile markets have undergone lot of changes and some countries in these regions have emerged as the fastest-growing mobile markets in the world. Telecom infrastructure has improved and with this, mobile usage has surged. The array of services has, therefore, increased dramatically,’’ says chief strategy officer of Bharti Telesoft, Sangeet Chowfla. The company with expertise in mCommerce service is working with mobile operators in Africa to provide solutions to help them capture new market segments. The company is also expanding across the Middle East and working with partners to penetrate the markets. ``There is great potential for operators in rapidly growing markets to bring hitherto unavailable services to mobile subscribers. mBanking is one such area where the potential is tremendous,’’ Mr Chowfla further said.

Ahmedabad-based Net4Nuts Limited that provides mVAS services to several top telecom operators across India and South East Asian countries is now moving to Africa and Middle East regions to tap the growing markets. ``The average mindset of customers in the two regions is very similar and what works in India works there too. Further, compared to India telecom operators, operators in these regions are pricing services as many as 250 times higher and the revenue-sharing model is also friendly,’’ says Net4Nuts CEO, Chirag Patel. The services provided by the company range from fun-related entertainment and lifestyle to business oriented information under travel and finance through SMSs.

Another player, Impetus Technologies, that introduced Mandi Bhav, a commodity price application for Indian rural VAS service providers, has also begun tapping markets in these regions. ``We are getting good offers from Middle East and African markets for our services that focus mainly on rural markets. Our contents are finding markets that are not much different from Indian market,’’ said Prem Rathi of Impetus. Agriculture-based services, weather information, edutainment focussing on understanding new languages are services that are finding new market there.

Indian VAS providers feel telecom operators in these new markets are more reasonable when it comes to revenue-sharing, which is also one reason why VAS operators are readily tapping new markets. ``That apart, you need to have specific contents that could come to the use of mobile users in other regions. Indian VAS providers have gained expertise in developing such contents, which is coming in handy for their expansion,’’ Mr Rathi further said.

[Honest 836]

TRAI Mandates Changes To Short Code Services; Holes In The DNC Bucket

This is important for the VAS companies sending out SMS’: The TRAI has mandated mobile operators prefix a service provider and service area code in order to allow the authority to track unsolicited SMS’. Thus, an SMS received from the Hard Rock Café in Mumbai, if sent via Vodafore, will have to be displayed as VM-Hardrock. This is in order to help crack down on alphanumeric SMS’, the source of which was difficult to track. The deadline for the change has been set for Feb 2009, since the SMSCs that Reliance Communications and Reliance Telecom have, will have to be upgraded.

I’ve been received unsolicited messages from the Hard Rock Café, after I’d given my number there to book a table, and MeraMobi, after I’d downloaded its app to try it out for a story.

All these notifications are steps in the right direction, but there really is no update on what the TRAI is doing about the DNC complaints. I’ve made several complaints since signing up over a year ago, and over the past four months, I’ve received no updates or calls from my service provider (Airtel) on what has been done regarding the complaints, despite calling up and requesting an update. Are mobile operators being held accountable the TRAI?

In the final quarter of the financial year, the Insurance companies will up the ante, and the unsolicit call problems will resurface…so who is eventually accountable? It’s not as if the DNC hasn’t helped, but it is still not very effective.

Courtesy : Medianama

[Honest 836]

Mobile VAS players ringing in more profits

Economic Times l 22 Dec

While the world reels under recession, emerging players in the mobile value added services (mVAS) business in India are not just growing but chalking out new plans with the introduction of 3G (third generation) telecom services. Using ingenious strategies, companies like Net4Nuts, One97 Communications, Ziva Software, Mauj Telecom and Hungama are now gunning for expansion into fresh markets with new, innovative offerings.

Combating the recessionary winds on the horizon comes first for Chirag Patel, CEO of Net4Nuts, a technology company that provides a range of mVAS to operators like Vodafone, Airtel, Spice, and BPL Mobile. He thinks this is the perfect time to expand beyond the domestic market. His target-countries in the Middle East and South-east Asia.

The technology will remain the same with a bit of tweaking to localise services. mVAS applications are going to be a hit with networks that carry 3G, and Patel expects 3-4 times higher margins in the new markets than what he makes in India. "Those applications are priced higher than 2G and have better margins, and so we will be competing full throttle there," he says. Net4Nuts had developed SMS-based software for the Indian Railways, which helps users get information on train schedules and reservation status through their regular mobile phones. Now, when consumers are likely to cut down spending, Patel has a plan ready.

"We have launched promotional schemes like referral programmes with operators, where users can refer names and use our services free-of-cost." The company expects to do a turnover of Rs 6 crore this fiscal, which is a 50% more than last year.

With mobile penetration in India at 20% against a paltry 2% reach of the Internet, it is estimated that one out of every five mobile users in India connects to the Internet through the mobile handset. Such users own WAP (Wireless Application Protocol) enabled phones allowing access to the Internet through a WAP browser, which adapts web content for the small screen displays of mobile phones. According to PricewaterhouseCoopers, mVAS revenues in India are expected to touch over $2 billion by the end of this year. Currently, about 44% of mVAS revenues are driven by short messaging service (SMS) applications.

That spells good cheer for smaller mVAS players who are poised to make the best of this trend. One97 Communications, for instance, is now readying new applications to serve the market that will open up with 3G services. Market estimates indicate that nearly 8 million customers would start using mVAS every month in India in the coming year, with much of the urban population a waiting target for fast downloads.

"We are aggressively working on mass-market applications to broad-base our market reach at relatively lower rates in these cost-cutting times," says Vijay Shekhar Sharma, managing director, One97 Communications. Sharma says he has re-negotiated with players like HP and IBM for their voice based platforms, and expanding his team to meet the work that would come their way in the 3G era. "Our team is working on low-cost applications for telecom service providers which will be offered to subscribers, and some premium applications for 3G," says Sharma. He adds that demand for broad-based application like tariff plans, call-for-information and voice-based services have been increasing at more than 80% every month. The number of mobile subscribers has reached 325 million, making India the second-largest

wireless market in the world. And as subscribers keep getting added, mVAS players are the logical beneficiaries. "We are adding three million subscriptions a month," says Manoj Kohli, CEO and Joint MD, Bharti Airtel, speaking on the sidelines of the Strategic Management Society's India Special Conference in Hyderabad recently. According to a study by the Internet and Mobile Association of India (IAMAI), one impediment that can stunt the telecom growth story is the lack of availability of such services in cheaper handsets. Typically low-priced handsets do not support high speed data transfer, a key enabler of 3G services.

This is already being addressed by companies such as DigiBee Microsystems, which has developed feature-rich handsets at half the cost of their big brand counterparts. With handsets priced at Rs 1,000 it tied up with BSNL last June to offer service bundled handsets in tier-II and tier-III markets.

The success of mVAS going forward will depend critically on faster adoption of specific applications among different segments of mobile subscribers. Bangalore-based Ziva Software is pinning its mVAS hopes on search, made simple and easy. Its search engine works to understand ambiguity, so if you enter a broad phrase like 'flowers in Chennai', the application guides you through more detailed queries to throw up results accordingly. The best part is that language won't be a bar in this search application. Says the company's founder Ajay Sethi, "For us, concentrating on such innovations is fundamental to being on top of the currents economic situation."

Neeraj Roy, CEO of Hungama Mobile, one of the largest developers of mobile and digital entertainment content, couldn't agree more. His company has made the best of mVAS services around the entertainment industry. The latest is voice-based services for Bollywood's latest blockbuster, Rab Ne Bana Di Jodi, where a caller can share his/her special romantic experience with Shah Rukh Khan.

Newer applications are being readied on gaming, music and karaoke for upcoming releases like Chandni Chowk to China, Ghajini, and Jumbo. "More than a billion people across the world will go on to the mobile Internet in the next three years. A major chunk of this will be from India," says Roy. His team has also developed applications on video-conferencing through a 3G mobile device. "There is a big market there," he says.

Similarly, Mauj Telecom is looking to bring magazine content to the mobile phone, and 3G will make this easier. Mauj currently offers mVAS services ranging from mobile games, ringtones and wallpapers to roaming applications. It already has access to magazine content from Maxim and Man's World, and has now tied up with For Him Magazine to make its content available on mobile phones. It also plans to launch mobile magazines or Mobizines soon. Of course, all this will look, and work, much better on 3G networks that will offer high download speeds and open up exciting possibilities for more complex application development, says Manoj Dawane, CEO, Mauj Telecom, "You give people what they want, and they will buy."

[Honest 836]

Mobile VAS cos may stay unlicensed

Economic Times l 23 Dec l New Delhi

Companies providing value-added services (VAS) such as music and videos on the mobile phones will not be brought under a licensing regime. Telecom Regulatory Authority of India (TRAI), which has been examining the issue for the last couple of months, holds the view that the country should continue with the current system, as per two TRAI officials. VAS providers are neither regulated nor licensed currently.

The regulator has also decided not to interfere in the commercial agreements between VAS operators and telcos, the officials said. TRAI is likely to announce these moves within the next couple of weeks.

All telecom services except voice, such as SMS, music, entertainment, mobile commerce and GPRS are classified as VAS applications. As per TRAI figures, about 10-14% of telcos’ total revenues currently come from VAS. With telcos now shifting their focus towards high-end VAS applications, non-voice revenues are expected to cross 30% of total revenues in the next 5-7 years. As per the Cellular Operators’ Association of India (COAI), the body representing all GSM players, the VAS services market is projected to be worth $10 billion by 2010.

TRAI is also likely to put guidelines to enable content producer and creators to protect their copyrights. This will prevent operators from misusing branded content such as movie clips and music files. The regulator is also looking at the possibility of issuing norms that will allow VAS companies to sell their products and services directly to the consumers without having to go through the operators.

TRAI’s decision not to specify a revenue-share system is likely to upset most leading players in the country’s Rs 4,500-crore VAS sector. Players in the space have constantly alleged that telcos didn’t give them a fair share of revenues and have been pressing for a regulatory framework for revenue sharing. VAS players have demanded that India too have an organised business model as established in other markets such as China, Japan and Europe.

Earlier this year, all leading telcos had opposed move by the government or TRAI to frame guidelines for VAS. Operators had said that India must not deviate from the current policy of ‘light touch regulation’, where they only have to inform DoT before launching a service.