It is too early to say whether 3G will really boost VAS in short run.. One kind of killer services required which can help to prosper 3G VAS. Just like CRBT in today's VAS.. If there is any one service which can fuel growth of 3G VAS is
1st : Selling of Anti virus - online security Or say clean pipe
This will be one of the killer service.. very basic but very much necessary for all Internet users on the move :)
2nd : I bet on LBS (Location Based Services)
LBS has its own challenges can't be successful until unless critical mass has been gathered of localized content.. then it may be users or maps or any other info having additional dimension (or let me call it vector) as space
challenges are too big to handle for telecom operators alone. Either need to invest big way in both a) generating/ aggregating quality content with space relevance
b) Huge bucks has to be wasted on promoting the same
Or do the tie-up with 2nd best service providers like Yahoo maps, social network sites like orkut (I believe Face book is No.1).. Reason for 2nd best is they will willingly cooperate for long term..
Once critical mass is started following LBS then UGC (User Generated Content) will come in picture and then there won't be any looking back. It can sustain their own and create GREAT value for the customers and the Telecom operator
These will be mass market services and then comes niche services
3rd : Apps - smart application targeted towards cust segments and sold as
Software As A Services
Let me tell you secrete- formula for success will even not change in case of 3G: All services and user experiences has to be mapped by putting/considering Customer in the centre.. Revenue and loyalty will follow
Thursday, April 8, 2010
Monday, April 5, 2010
VAS in Indian Scenario
VAS, India and Revenue Share
There are many VAS players in India. Typically VAS industry value chain is comprised of telecom operators and Others. At the top of value chain, Sharks in the ocean are telecom operators-having access to the end-users. Another big fish is branded content providers like Disney, Yash Raj films, CP like Marvel, people like Bejan Daruwal where content got branded, have powerful brand values, stronger brand recognition and high level of brand pull
All other players could be technology platform providers like Xius, Roamware, system integrator like Patni Computers. And then some of the players also add value by doing service management, content aggregation, content processing (production). This is the domain mainly known as pure VAS players (VASP – Value Added Service Providers). There are players like IMImobile into technology platform, managing services, content aggregation and content production. Onmobile has strong presence in technology platform, service management.Mauj is pure content aggregator. Pyro has technology platforms and develops its own content as well. Voice services are forte for One97 while Cellebrum is stronger in sms services. India Times 58888 services have strong back-up of India Times group’s media muscles.
Nazara, Value first, ACL, Cellnext, Onyx, Banglore based WiFi networks are few other players in the market. There are new entrants in Indian VAS market like Hyderabad based Tanla, Reliance ADAG group’s Big Digital. Then there are international players like Jamba, EA, Mach, Bonjono, end2end sms etc having strong interest in Indian VAS market. And there are countless other VAS companies specialized to provide couple of application based services or stronger in regional flavor.
Point I am trying to drive is that now Indian VAS has grown reasonably big in size. There are more than 30 VAS service providers, employing above 10,000 employees directly and double the counts indirectly employed across India. It is expected that VAS services will generate revenue of INR 4,000 crore (INR 40 bn) per annum by 2012. And still there is no forum to address issues and concerns of VASP. VC funding to this budding VAS industry is almost dried up. Indian telecom market is growing, but financial condition of VASP is weak to moderate.
Some of the reasons are:-
# Lack of standardization
# Availability of short code
-Huge dependability of operator
-Difference in price point and configuration
-Extremely long wait period for short code integration - 6 to 12 months
# Scarcity of skilled employees
# Poor financial management
# Intense competition in fragmented market for increasing market share
# Lesser brand equity to hold on to the professionals
# Price pressure, cost side pressure
# Collection cycle @ 120 days, payment cycle @ 75 days – negative cash flow
# Entry barrier, long gestation period, deep pocket for content aggregation
# Paltry revenue share (Telcos keep biggest pie normally 70 to 80%)
Poor performance of VASP may cause revenue impact on telecom operators, media and content providers and content owners. And biggest sufferer is the end-user (consumers).
Concerns for end-users :-
# Deprived from innovative services
# High quality, premium content not available
# In-consistency in VAS service performance leads to dissatisfaction
# Non-uniformity of VAS services leads to frustrating experience
# No value for money
What can be achieved possibly by having common forum?
1. Service standardization
2. Service/ payment aggregations at short code levels
3. Plug-and-play model for various innovative VAS services
4. To reduce lead time for across operators, pan India integration of services like short codes for voice, sms and premium WAP contents
5. Bring DoT regulation for connectivity and price points (Rev share better left on market forces to decide)
6. A common forum for VASP and operators for VAS development in India
7. Being couples of more mobile operators coming in each circle, common forum for addressing connectivity and standardization issues will become necessity.
Can we have common forum in India for VAS services like in USA.Where Indian VAS provider has to be a member of the forum to provide VAS services.And where TRAI can regulate it with loose hand providing just guiding principals. Anyway TRAI had shown interest in making VAS to grow.
Few things could be done:-
There shall be mobile advertising guidelines. Make compulsory to all VAS providers to have customer support centre, penalty for non-performance or poor service quality and put economical pressure to bring revenue share at least up to 50: 50 (Telcos: Others)
In SEA market it is understood that operator keeps only access charges and shares almost 75% of revenue collected for VAS services. But looking at Indian scenario, it should do well with 50:50 or 40:60 rev share in favor of VASP.
Going forward there will be tremendous boost in services like clean pipe, various mobile applications sold on SAAS model and never the less there will be huge thrust on LBS (location based services) and UGC (user generated content)..
3G auction is on their way and by end of this year 3G will become true reality with various commercial launches and compelling services forcing early adaptors to take 3G based services
Yahoo!, Microsoft and Google of the world will then join the party of mobile VAS.
3G will ensure high penetration of VAS into neglected area of Enterprise segment as well.
Finally Maximum of Strength of Value Chain = Limit to (Strength of Weakest Link)
Friends let me know your views!!!
There are many VAS players in India. Typically VAS industry value chain is comprised of telecom operators and Others. At the top of value chain, Sharks in the ocean are telecom operators-having access to the end-users. Another big fish is branded content providers like Disney, Yash Raj films, CP like Marvel, people like Bejan Daruwal where content got branded, have powerful brand values, stronger brand recognition and high level of brand pull
All other players could be technology platform providers like Xius, Roamware, system integrator like Patni Computers. And then some of the players also add value by doing service management, content aggregation, content processing (production). This is the domain mainly known as pure VAS players (VASP – Value Added Service Providers). There are players like IMImobile into technology platform, managing services, content aggregation and content production. Onmobile has strong presence in technology platform, service management.Mauj is pure content aggregator. Pyro has technology platforms and develops its own content as well. Voice services are forte for One97 while Cellebrum is stronger in sms services. India Times 58888 services have strong back-up of India Times group’s media muscles.
Nazara, Value first, ACL, Cellnext, Onyx, Banglore based WiFi networks are few other players in the market. There are new entrants in Indian VAS market like Hyderabad based Tanla, Reliance ADAG group’s Big Digital. Then there are international players like Jamba, EA, Mach, Bonjono, end2end sms etc having strong interest in Indian VAS market. And there are countless other VAS companies specialized to provide couple of application based services or stronger in regional flavor.
Point I am trying to drive is that now Indian VAS has grown reasonably big in size. There are more than 30 VAS service providers, employing above 10,000 employees directly and double the counts indirectly employed across India. It is expected that VAS services will generate revenue of INR 4,000 crore (INR 40 bn) per annum by 2012. And still there is no forum to address issues and concerns of VASP. VC funding to this budding VAS industry is almost dried up. Indian telecom market is growing, but financial condition of VASP is weak to moderate.
Some of the reasons are:-
# Lack of standardization
# Availability of short code
-Huge dependability of operator
-Difference in price point and configuration
-Extremely long wait period for short code integration - 6 to 12 months
# Scarcity of skilled employees
# Poor financial management
# Intense competition in fragmented market for increasing market share
# Lesser brand equity to hold on to the professionals
# Price pressure, cost side pressure
# Collection cycle @ 120 days, payment cycle @ 75 days – negative cash flow
# Entry barrier, long gestation period, deep pocket for content aggregation
# Paltry revenue share (Telcos keep biggest pie normally 70 to 80%)
Poor performance of VASP may cause revenue impact on telecom operators, media and content providers and content owners. And biggest sufferer is the end-user (consumers).
Concerns for end-users :-
# Deprived from innovative services
# High quality, premium content not available
# In-consistency in VAS service performance leads to dissatisfaction
# Non-uniformity of VAS services leads to frustrating experience
# No value for money
What can be achieved possibly by having common forum?
1. Service standardization
2. Service/ payment aggregations at short code levels
3. Plug-and-play model for various innovative VAS services
4. To reduce lead time for across operators, pan India integration of services like short codes for voice, sms and premium WAP contents
5. Bring DoT regulation for connectivity and price points (Rev share better left on market forces to decide)
6. A common forum for VASP and operators for VAS development in India
7. Being couples of more mobile operators coming in each circle, common forum for addressing connectivity and standardization issues will become necessity.
Can we have common forum in India for VAS services like in USA.Where Indian VAS provider has to be a member of the forum to provide VAS services.And where TRAI can regulate it with loose hand providing just guiding principals. Anyway TRAI had shown interest in making VAS to grow.
Few things could be done:-
There shall be mobile advertising guidelines. Make compulsory to all VAS providers to have customer support centre, penalty for non-performance or poor service quality and put economical pressure to bring revenue share at least up to 50: 50 (Telcos: Others)
In SEA market it is understood that operator keeps only access charges and shares almost 75% of revenue collected for VAS services. But looking at Indian scenario, it should do well with 50:50 or 40:60 rev share in favor of VASP.
Going forward there will be tremendous boost in services like clean pipe, various mobile applications sold on SAAS model and never the less there will be huge thrust on LBS (location based services) and UGC (user generated content)..
3G auction is on their way and by end of this year 3G will become true reality with various commercial launches and compelling services forcing early adaptors to take 3G based services
Yahoo!, Microsoft and Google of the world will then join the party of mobile VAS.
3G will ensure high penetration of VAS into neglected area of Enterprise segment as well.
Finally Maximum of Strength of Value Chain = Limit to (Strength of Weakest Link)
Friends let me know your views!!!
Tuesday, December 1, 2009
Self help guide for per second billing: Which Tariff plan to prefer?
And here comes per second billing.... Yes, price war has once again & yet at least 2~3 serious player yet to enter in Indian Market. Is this price war sustainable? I have big 'YES' for it.
1) By nature we are talkative people
2) Still every month we are adding about 1.5 cr (15 mil) new subscribers
3) And some more reasons, I will post in the next blog when time permits.. watch this space
Sustainable Tariff options:
a) per second billing with slightly higher effective per min rates :- for those who are frequent caller for small duration like sales guy always on move and reporting every hr to managers & people like stock brokers, tele-marketers { may be those who pitch for insurance sales as tendency you will put down your phone any time after 2 seconds.... :-) }
b) per min billing for attractive pricing :- for those who are professionals need to be refered less frequently & for short durations like company's CEO, MD calling to Sales head or others, Doctors/ CAs calling their clients
c) charges per call where typically calls are considered for 180 sec or 600 seconds :- real aggressive plans for those chatter boxes at home your daughters, wife/ beloved hubby or for yourself to talk with your girl friend/boy friend
d) And last option Make Your Own Plan :- TATA DOCOMO has started offering this for those elite class who are suppose to be literate enough to know their benefits. Other wise for rest all common man like us above three options are enough to choose from
There is absolutely no need to complicate Tariff plan offerings beyond this.
Though it is my personal openion, Reliance has tried achieving this. How well it gets communicated is yet to see.. Last two months aquisition is at least not in its favour..But there could be various reason to it. But TATA DOCOMO is clear winner, forcing even to Vodafone and Airtel to see the back. (as per TRAI reports)
---
What about SMSs ?
A) For professional/ Geek chatters :- Pay per Character (Some operator call it Diet SMS.. for whom is it diet really?)
B) For Managers ordering through SMS or habitual detailers : better to opt for aggressive SMS charges per SMS
---
Any other things:
A) Think of having some kind of onnet top-up if your regular calling group is on the same network
B) If your real export-import quality person fitting into P3 category or having business need, look around for best bargain ILD rates..
I am sure you will get it if commit ILD ARPU of say INR 1,000/- or above
Challenges for operator is how well they can communicate their simple offerings...
And challenges for customer is how well they recognize their cell-phone usage habbit...
Do write back to me for any comments or clarification, happy talking till then...
1) By nature we are talkative people
2) Still every month we are adding about 1.5 cr (15 mil) new subscribers
3) And some more reasons, I will post in the next blog when time permits.. watch this space
Sustainable Tariff options:
a) per second billing with slightly higher effective per min rates :- for those who are frequent caller for small duration like sales guy always on move and reporting every hr to managers & people like stock brokers, tele-marketers { may be those who pitch for insurance sales as tendency you will put down your phone any time after 2 seconds.... :-) }
b) per min billing for attractive pricing :- for those who are professionals need to be refered less frequently & for short durations like company's CEO, MD calling to Sales head or others, Doctors/ CAs calling their clients
c) charges per call where typically calls are considered for 180 sec or 600 seconds :- real aggressive plans for those chatter boxes at home your daughters, wife/ beloved hubby or for yourself to talk with your girl friend/boy friend
d) And last option Make Your Own Plan :- TATA DOCOMO has started offering this for those elite class who are suppose to be literate enough to know their benefits. Other wise for rest all common man like us above three options are enough to choose from
There is absolutely no need to complicate Tariff plan offerings beyond this.
Though it is my personal openion, Reliance has tried achieving this. How well it gets communicated is yet to see.. Last two months aquisition is at least not in its favour..But there could be various reason to it. But TATA DOCOMO is clear winner, forcing even to Vodafone and Airtel to see the back. (as per TRAI reports)
---
What about SMSs ?
A) For professional/ Geek chatters :- Pay per Character (Some operator call it Diet SMS.. for whom is it diet really?)
B) For Managers ordering through SMS or habitual detailers : better to opt for aggressive SMS charges per SMS
---
Any other things:
A) Think of having some kind of onnet top-up if your regular calling group is on the same network
B) If your real export-import quality person fitting into P3 category or having business need, look around for best bargain ILD rates..
I am sure you will get it if commit ILD ARPU of say INR 1,000/- or above
Challenges for operator is how well they can communicate their simple offerings...
And challenges for customer is how well they recognize their cell-phone usage habbit...
Do write back to me for any comments or clarification, happy talking till then...
Sunday, April 12, 2009
Survival of VAS eco-system
Current recessionary phase gives us a pause, to relax and re-visit VAS strategy? Will all VAS services continue to exist as paid model and continue to grow at same rate? Will 'going rural' motto of cellular company allows VAS to sustain similar % penetration ? Does trend suggest something more conducive required to increase acceptability of VAS services further..
I believe it is required.. future growth of VAS services will be embedded with Ad-revenue support model.. Google and Yahoo! of the world will make VAS as side load/free load/ subsidize.. Or there may be slot for new giant to emerge in the world of mobile search. It may be possible that on the mobile ads may not be rendered based on pure search.. As mobile being highly personal think, with the help of Telco, more relevant ads can be rendered based on the customer profile mapping.. Telcos owning the customer will become more and more profitable for the mobile operators..Welcome to the world of 'Permission Marketing'
Race has just begun...
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