Smart Devices and VAS

As users mature on the network, the movement towards bundled offerings of data, devices, and services is changing the dynamics and the consumption of VAS

Once the Indian mobile subscriber base touched the tipping pointH thanks to better coverage and reducing pricesH telcos started focusing on getting more out of their users. Nveryday the biggest challenge was to ensure sustainability and profitability constrained by hyper competition and inconsistent regulatory environment. As users matured on the networkH their expectations from their network providers moved from basic voice to quality and value of services. Users are now listening to musicH clicking picturesH and becoming socially active on the online social media platform.

The movement towards bundled offerings of dataH devicesH and services is changing the dynamics and the consumption of VAS. Though the average revenue per user (ARPU) has declined over the yearsH the VAS APRUs has consistently increased and gone up by 28% in the last one year. CurrentlyH it stands at 27% of the ARPU according to IAMAI. However the VAS market in India is still evolving.

Users are moving to more data enabled devices and use of mobile to access internet is creating a whole new mid-tier marketH consequently changing the device landscape in India.

Data enabled devices (both GPRS and 3G) now constitute approximately 70-80% of the installed base

Mobile data due to 3G services and data dongles’ high adoption is widely accessible across India

Nntire ecosystem development is visible