According & #BANNER1 & # to Mobile Value Added Services Report, prepared jointly by Internet and Mobile Association of India (IAMAI) and IMRB International, the Mobile Value Added Services (MVAS) industry, having a current worth of Rs 2,850 crore, could reach close to the figure of Rs 4,560 crore by the end of year 2007.
The specialist technology research unit of IMRB International, eTechnology Group, and IAMAI adopted the methodology of interviewing key stakeholders in the MVAS space. The report also analysed published reports and data from associations such as Cellular operator Association of India (COAI) and Association of Basic Telephone Operators (ABTO) to arrive at the estimated growth figure for the year end. The respondents mainly comprised representatives of a cross section of industry experts, telephone companies, content aggregators, platform enablers and short code owners.
On fragmenting the current market size of Rs 2,850 crore, Person 2 Person text messaging (P2P SMS) dominate the industry with a share of Rs 1,140 crore. This is closely followed by ringtones, including Caller Ring Back Tones (CRBT) at Rs 1,026 crores. Then comes the Person to Application (P2A) and Application to Person (A2P) figuring at Rs 428 crores, Games and Data at Rs 171 crores and others including applications such as MMS at Rs 86 crore.
The P2P SMS revenue flows completely to the telecom operators. The remaining MVAS revenues are distributed among content owners, developers and the telecom operators on a revenue sharing basis.
The revenue sharing model, in case of MVAS, except P2P SMS, is heavily in favour of telecom operators. This model is significantly different from more developed markets such as China, where typically the operators are entitled to only 20-30 percent. But the enterprise solution services provide a revenue share arrangement of 70-30 percent between operator and short code owner.
Commenting on the study, Subho Ray, president, IAMAI says, "For the MVAS industry to grow and come up with original solutions its very important for the government to provide stable and long term policies that complement the industry. Intra industries issues such as Intellectual Property Rights (IPR) and the revenue sharing and schedule of payments which is currently heavily in favour of telecom operators should also be set right."
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