'The mobile VAS game is about to change and only the agile will survive'

The year 2008 holds great promise for the MVAS industry in India. Two key focus areas of this year will be the launch of 3G and the Advent of Mobile Advertising in the country.

The much anticipated 3G will bring with it the stage, set for the entry of Mobile Advertising, creating a flawless marketing medium that allows you to reach consumers in a way that genuinely interests them.

Upcoming in 2008

The Industry is awaiting its share of changes that will come its way in the year ahead. 2008 will witness trends that are bound to change the entire MVAS game, offering opportunities that will need to be capitalized on. In times like these, only players with the ability to scale, who have established and consolidated their stronghold in the industry will be able to survive and thrive in this highly competitive and burgeoning MVAS space.

The introduction of 3G technology will see services like Video Streaming, Video Caller Ringback Tones (CRBTs) and Wireless Teleconferencing gaining popularity.

Increased data connectivity will increase the consumption of content on mobile, expanding the market enough for the content companies to reach out to the customers on their own, if the risk of disintermediation can be worked out.

Increased data connectivity will increase the consumption of content on mobile


The beginning of this transformation is already evident in the deals being made by companies like People Infocom (Mauj Mobile). The company is counted amongst India's leading MVAS providers and has inked deals that substantiate its expertise as an end-to-end Mobile Solutions Company. Their recent undertakings include, associations with Eros studios to repurpose film content for the mobile, and managing ESPN's direct-to-consumer wireless portal on a managed services model.

Mobile Advertising is another area that will see a promising year ahead. While the current scenario for Mobile Advertising in the country lacks a much needed push, interesting concepts like AdverGaming are fast gaining significance. People Infocom has worked on games for MTV UK and Sony Ericsson on the same lines.

The Future for Mobile Music

Mobile Music is a part of the Mobile Entertainment Industry. Entertainment and Telecommunications are the two important industries that converge to form this burgeoning sector. Each of these worlds in India are at present faced with immense opportunity, and that translates into an even bigger prospect for the Mobile Music space in particular.

The mobile music market in India is at present valued at approximately Rs 1650 crore and is growing at an estimated CAGR of 40-50%.

Fuelling this growth rate, are the opportunities presented by the sheer size of the Indian market and the colossal Indian music and film industry itself. The introduction of 3G technology later this year will only facilitate a better way to reach a mass-market audience in a country of more than one billion inhabitants.

Better accessibility and a penetration rate of around 18% has helped Mobile Music surpass Online Music sales in India. Online Music makes up less than 5% of the digital market in India, while Mobile music covers the rest.

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