Indian Mobile VAS Market to reach INR 33,280 Cr. by 2013


It is clear from the lackluster Mobile subscriber growth numbers that it has hit a ceiling. Although, the rural mobile subscriber numbers are still showing decent pace of growth, urban subscriber numbers have more or less reached the limit. From telecom provider’s perspective, revenues from Voice services are not expected to grow much going forward.

The latest IAMAI-IMRB report on Mobile VAS in India estimates that by end of 2012, the MVAS market in India will reach INR 26,000 crore registering a growth rate of 28% year on year. By 2013, the MVAS market the same expected to touch Rs. 33,280 crore.

MVAS Market Growth

User Spends on MVAS

In last couple of years, telecom operators have increased their value added services offerings in bid to improve their ARPUs, which currently is one of the lowest in the world. The report points to the fact that increased MVAS spending by mobile users have contributed to increase in the overall ARPUs.

In 2011, monthly ARPU was Rs. 85, which is estimated to increase to Rs. 88 by end of 2012. During the same period, MVAS share increased by Rs. 6 (from Rs. 18 to Rs. 24).


Traditional Vs Modern MVAS

The report points that Mobile Value Added Services (MVAS) like Astrology, Bollywood, Cricket with CRBT, Ringtones, SMS Updates etc continues to dominate the market with 63% share. However, in recent times modern VAS offerings in field of Health, Education, Entertainment and Banking have seen tremendous surge. These modern  VAS offerings will be the most sought after services in Future

MVAS offerings

The report reiterates the fact that Telecom Operators have to look at offering value added services to increase their ARPUs and subsequently their bottom-line.

1 Comment
  1. Pradeep parashar says

    Can you give me any web link where i can learn more about mobile value added services in india?Actually i want to know that how these companies works in india and how can I start a company like that,That will be very usefull for me.

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