Voice is Kinng?

For millions of years, mankind lived just like the animals. Then something happened which unleashed the power of our imaginations, we learned to talk. - Stephen Hawking

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State of Current VAS Industry

 VAS

constitutes ~7-10% of of total telecom revenue for Indian operators.  Digital music (including CRBT and ringtones) constitutes 35% of VAS revenue.

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VAS Revenue Split

SMS: 35%  CRBT: 25%  IVR : 15%  Downloads: 10%  SMS Subs: 5%  P2A (Peer to App) SMS + Misc: 10%
 P2P

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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 2025% and content app/owner gets 10-15% of the revenue]

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Entities in VAS Value Chain..

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VAS Portfolio

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Perspectives..Numbers
connection comprise ~85% of total subscriber base  Almost half of Indians use ULCH (Ultra Low Cost Handsets)  30% of mobile subscribers in India have opted for caller tune services
 Prepaid

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More Perspectives/Numbers..
 Approx

60% of mobile content downloaded in South India is in local languages  50% of all prepaid mobile phones have less than Rs. 40 balance at any point of time  ~45% of the target population cannot afford to pay much for VAS products
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Challenges
 Sliding



ARPUs

BoP segment
Not comfortable with SMS  English isnt the most prominent language.  Multiple dialects

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VAS Success Strategy

 Sachet

Pricing [E.g.: 10 Rs. Recharge Coupon.]

 Bundling

[E.g: Virgin:MySpace, Spice Mobile: ibibo, Email2SMS; LG: RockeTalk, ]

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VAS-tu Shastra..


Reuters Market Light - a short messaging service costing 60 rupees ($1.50) a month.


100,000 three- month subscriptions Priced between Rs.560 and Rs.1700, about 5,000 farmers are using the application. Local Information on seeds/crops etc Sends subscribers an English word each day, explaining how its pronounced and what it means in the users native language. Each of these packages could cost between Rs 25 and Rs 50 a month
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Nano Ganesh


Nokia LifeTools
 

Nascent Market..
 Local


Search

Airtel receives 500,000 queries a month.  BPLs Mumbai search receives 800 local queries a day
 3G


Mirage

Will accelerate Mobile Internet  VAS Operators/MVNOs will drive the growth.

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Is Voice the Kinng?

VAS is currently limited to urban area primarily driven by entertainment content.  30% of New Mobile Users from Rural India [Q2 2008 Report]  Mobile handsets costing less than $50 account for 62 per cent of all imported units.

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Is Voice the Kingg?

 SMS,

MMS, CRBT, and GPRS would fail  Regional/Rural IVR seen as a major opportunity
But where is the compelling content?  Competition : SMS?


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Voice VAS Challenges

 Opportunity:


Rural, the untapped market.

Rural Services : E.g.: Mobile Payments (cashnxt).

 Challenge:

Voice Recognition Not a single engine understands different dialects.

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Thank You!

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Source
 PluGGd.in  Emergic  BDA

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