(5 July 2008 6:00 pm)

MUMBAI: A level playing field between the telecom operators and the smaller mobile value-added services (MVas) companies is a pre requisite for the growth and sustainability of mobile telephony in India.

In the past five years, the MVas industry, by offering innovative and utilitarian services to consumers, have contributed significantly to the growth and adoption of mobile telephony in India as well as to the revenues of the telecom companies. To ensure this growth it is imperative that a level playing field between the large telcos and the smaller MVAS companies is established soon.

This was the crux of the submission made by the Internet and Mobile Association of India (IAMAI) in response to the recent consultation paper on Mobile Value Added Services Industry issued by the Telecom Regulatory Authority of India (Trai).

The suggestions/recommendations put forth in the response paper are aimed at achieving an enabling eco-system by establishing a more equitable relationship between Telcos and MVas companies.

Only after this is achieved would the market and the normal commercial channels be sufficiently poised to address other issues such as revenue share, quality of content, quality of services etc.

IAMAI’s submission covers most of the key operational hurdles faced by the MVas companies It suggests that a more transparent and rule-based system is established to govern the relationship between Telcos and MVas companies. Some of the issues highlighted by IAMAI are as follows:

Shortcodes: To make the process of obtaining a short code faster, easier and standardised and transparent with the view to allow a company or an entrepreneur start a business faster with realistic timelines. As easy as booking a domain name.

MIS and reconciliation system. A standardised mechanism for MIS and reconciliation 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.

To achieve these objectives within the overall goal of providing a level playing field to MVas industry, IAMAI feels that it may be necessary to have additional obligations on the current licensees, i.e., the telecom operators. Alternatively, the MVAS industry should be treated as the single largest users of telecom services and their rights protected.

IAMAI feels that either of these two options could resolve the fundamental issues that currently inhibit the growth of the industry. However, in case they are not sufficient, IAMAI suggests a “light touch” regulation which would specifically address the main impediments to growth as outlined in the IAMAI submission.