IAMAI- IMRB report: MVAS grows at 28 per cent; surge in modern MVAS in India

05 Jul,2012

By A Correspondent


The Indian mobile value-added services (MVAS) market is expected to become a Rs26,000 crore market by the end of 2012, growing at the rate of 32 per cent. MVAS is estimated to further grow to a whopping Rs33,280 crore market by 2013, a growth of 28 per cent. While the conventional MVAS services are still dominant, emerging MVAS services are also rapidly gaining popularity with mobile users. These are some of the findings from the latest IAMAI – IMRB report on Mobile VAS in India.



According to the IAMAI-IMRB report, MVAS can be divided into two categories – conventional MVAS which has a market share of 63 per cent and the emerging or modern MVAS which contributes a market share of 37 per cent. While the conventional MVAS services consist mainly of CRBT and SMS-based applications, the emerging or modern MVAS mainly consist of mobile apps and games.


Speaking to MxMIndia on the factors that would drive the MVAS revenues in the long run, Rajiv Hiranandani, Co-founder and Executive Director, Altruist- Mobile2win said: “I am a firm believer that the true growth of mobile VAS is going to come from the rural India. You will see more of services that will help the rural or the small town Indian utilizing the services. In that respect, I believe Interactive voice response (IVR) based services and SMS-based services are going to be big drivers of Mobile VAS. These services could range from basic things like finding the price of vegetables or some information over SMS or finding friends over IVR or IVR-based social networking. These are services that will catch on and will drive revenues in India over the years to come. So for VAS revenues to explode in the country, you need to appeal to the lowest common denominator which primarily resides in the rural India.”



In the last three years, the average MVAS spent per month has risen by Rs9 to stand at Rs24 per month in 2012. The percentage share of per user spend on MVAS in Average revenue per user (ARPU) has been increasing gradually. Even though the ARPU has declined over the years, per user spend on MVAS has gone up by 28 per cent in the last one year. It is now 27 per cent of the ARPU pie. The dependency on voice services is reducing and to increase the ARPU, the emphasis must be put on data services such as MVAS.



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