Mobile VAS market to generate over 55,000 Crore

By siliconindia   |   Tuesday, 12 April 2011, 01:32 IST
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Mumbai: The Mobile VAS market has a potential to generate over 55,000 crore. PwC undertook a detailed and wide scale market research with the objective of understanding the behavior of Indian mobile subscribers and off take of services in future. The research focused on urban India (wherein respondents were spread across different Socio Economic Classes (SEC), age groups, education, backgrounds, working status) and it covers 1050 respondents across 10 cities - Delhi, Mumbai, Hyderabad, Bangalore and other states. Speed, a deterrent for overall VAS adoption, is now a key enabler that will drive adoption of VAS. It is now time for India to focus on customer segmentation based data play. This report provides insight on the issues that are holding back the growth of Mobile VAS in India and map future consumer preferences and assesses the current state of VAS. The key findings of the report include; The Communication VAS Services with Video calls, MMS and Email which will be the key drivers for the communication VAS services. The Entertainment VAS Services consists of the users willing to pay most for entertainment services as compared to all other categories of VAS. The Information based VAS has medical services over mobile, which will also see uptake in next 3-5 years. And the transactional VAS services have successful response from the banks to their challenges of concerns around data privacy, usability and language independence of the applications. The survey yielded some interesting results that are influencing consumer behaviour. Some of them are; That, 87 percent of the people surveyed are aware of VAS based on regional entertainment, in the form of regional music videos and movie clips. 71 percent people are aware of the VAS of medical advice from the doctor, four out of five people are willing to use SMS in future and spend monthly average of 42. Future adoption for medical advice from doctors is higher for SEC B (51 percent) as compared to SEC A(49 percent) and SEC C (47 percent).Subscription interest for online gaming is almost double for students(57 percent).Interestingly, future adoption for making video calls is higher for SEC C(54 Percent) than SEC A (48 percent).Even though m commerce has awareness levels of more than 60 percent for most of the services, future adoption rates are lower.