Analysys Mason in collaboration with IAMAI has developed a Vision Document on Mobile VAS industry in India, titled “Evolution of Mobile VAS in India”. This report was released on 27th July, 2011 in New Delhi at a full day conference hosted jointly by Analysys Mason and IAMAI. The key findings of the report were released by Shri Sachin Pilot, Minister of State, Communications and IT, Government of India. Commenting upon the report, Shri Sachin Pilot said “The mobile value added services is miniscule at present in comparison to its potential and the government would make appropriate efforts to put the industry on an equitable and sustainable growth path.” However, in order for the industry to be a success, he suggested that service providers should provide locally relevant services in local languages. The inaugural session comprised of renowned industry delegates: Rajan Anandan, Managing Director, Google India; Dr. Kiran Karnik, Former President, NASSCOM; Hitesh Oberoi, Chairman, IAMAI & Managing Director & Chief Executive Officer, Infoedge India Ltd; Sandeep Sawhney, Chief Product & Innovation Officer, Aircel; D.P Venkatesh, CEO, mPortal. Kunal Bajaj, Partner & Director India, Analysys Mason gave a presentation on the launch of this report and stated: “Carriers are under tremendous pressure from competition and declining ARPUs, which have stunted revenue growth. Recent trends in the sector indicate that now is the right time for them to increase their focus on the VAS space to find new opportunities for differentiation and earnings.” Besides the inaugural session, the conference comprised of four panel discussions on current themes in the Mobile VAS industry: Mobile Entertainment, Livelihood Enhancement Services, Mobile Applications and Mobile Money. Each of these panels comprised of speakers (CXO level) from a cross-section representation of the industry and included leading carriers, technology platforms, mobile value added services providers and the government. The conference saw a turn out of over 200 leading industry delegates.

1. Evolution of Mobile VAS in India
Imperatives for Exponential Growth
Launch Presentation
July 2011 | A joint report by IAMAI and Analysys Mason

2. 2
List of Sponsors
Platinum Sponsor
Gold Sponsors

3. 3
Peer Review / Acknowledgements
• Peer Review Steering Committee
We would like to thank the peer review steering committee for dedicating their time to this initiative and helping to
identify the key issues to focus on. Producing this report would not have been possible without their inputs and
feedback
 Parag Kar VP, Government Affairs, Qualcomm (India & South Asia)
 PG Ponnapa Chief Executive Officer- India/Asia Pac, MPortal
 Sanjay K Goyal Founder & CEO, ACL Wireless
 Dr. Subho Ray President, IAMAI
 Vijay Shekhar Sharma Chairman & MD, One97
• Acknowledgements
We would like to acknowledge the following people for their extraordinary contributions
 Anand Virani Business Development Lead, Services Ecosystem, Qualcomm (India & South Asia)
 Chirag Jain Vice President - Marketing & Business Development, Webaroo
 Mohit Narain Business Director, ACL Wireless
 Rakesh Mahajan Independent Consultant

4. Global Experience 4
Global experience suggests that India has an opportunity to be a leading
‘mobile first’ market for data
Share of Non-Voice Revenues1 by Carrier, Country (%)
1 Messaging Driven Market
60%
• Messaging dominant markets with
high base of non-voice revenues
• Philippines
45%
High Growth post 3G
2 • Markets that have witnessed an
30% average change3 of ~4% per year
China: ~4.8%, since 3G
28.2%
• Malaysia, Brazil
Malaysia: 21.8%,
15% 64.1%
Moderate Growth post 3G
Brazil: ~16%, 3
S Africa: 8.2%, 45.0% • Markets that have witnessed an
0% 8.7% average change3 of ~2.5% per year
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 since 3G
2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010
• Large potential for long term growth
China 4
Unicom, China Vivo, Brazil Globe, Philippines due to the lack of alternate access
Smart, Philippines 5 Maxis, Malaysia AIS, Thailand mechanism
Telkomsel, Indonesia MTN, South Africa Vodacom, South Africa 6 • S Africa, Indonesia, Thailand & China
Launch of 3G Services Legend2: Country: PC Penetration, Internet Penetration
Note: 1. Non-voice revenues includes revenue from messaging, data usage and other non voice related activities; 2. PC penetration figures are
for 2005 and Internet Penetration figures are as of 2006; 3. Average yearly change in share of non voice revenues (within total revenues);
4. China Unicom was considered rather than China Mobile, because the latter launched 3G with TD-SCDMA while the former did so
with W-CDMA / HSPA; 5. Smart launched 3G services in Q1’06; 6. Vodacom launched 3G services in Q4’04
Source: Analysys Mason, © Wireless Intelligence 2011, Telegeography

5. Mobile VAS Overview 5
Structural enablers in the market also indicate that the MVAS industry is at
an inflexion point
Share of GPRS Enabled Handsets DEVICE Indian Music Industry Revenues CONTENT
in Total Handset Sales by Component (2010)
• The device landscape in India • Wider variety of VAS content
has changed significantly with 10% Others and services available to
65% the entry of local Indian Digital Indian user today; carriers
handset OEMs Music have become significant
41% distribution partners
51% • Data enabled devices (both
GPRS and 3G) now constitute • App stores with inventories
Physical
~70-80% of the installed into the millions across
Music
handset base 49%
multiple categories and
genres are being launched by
2009 2010 carriers, handset OEMs and
third party stores
ACCESS Active Mobile Data (GPRS) DEMAND
Data (2.5G) Plan Tariffs (INR)1
• Mobile data is now widely Users in India • The complete ecosystem
accessible with carriers 75 across devices, access and
launching 3G services content is resulting in
450 growing demand from
• Low sachet pricing and pay- consumers for mobile
per-site are encouraging 30
internet services
90 penetration of data services
adoption
1
2008 2010 CY2008 CY2010
Note: 1. Estimated price for entry level plan with unlimited monthly data usage
Source: Analysys Mason, FICCI Frames 2010, Company Reports

6. Mobile VAS: Challenges 6
However, key market and policy enablers in the on-deck, off-deck and SMS
markets will be imperative for growth
Key Issues First Order Impact Second Order Impact
Challenges for On-Deck VAS1
• Market inefficiencies resulting in Affordability
perceived scalability constraints for
1. Carrier control VAS providers Price points for VAS remains flat,
due to lack of competitive offerings
2. MIS reconciliation • Focus of platform providers shifting to
international markets to drive higher
3. Dispute redressal
revenue from their offerings
Ecosystem Evolution
• Perceived scalability and profitability Lack of innovative product and
Challenges for Off-Deck VAS2 service offerings, with VAS providers
constraints for D2C models, due to
1. Lack of alternate payment channels high % of billing share, and lack of focusing on mass market services
alternate billing models
2. No control over end user pricing
3. Skewed revenue shares when
• Companies focusing on basic mass Consumer Welfare
market offerings which can drive
using carrier billing Lack of consumer interest protection,
volumes in alignment with carriers
with no clarity on data charges and
pricing for SMS/calls to short codes
Challenges for SMS adoption
• Addressable base of SMS limited,
with only 47% penetration Investments for Scalability
1. Limited understanding of English /
Roman characters
• Mobile marketing / advertising on Limited investment in this sector due
SMS also constrained to perceived risk around carrier
control on revenue shares and billing
Note: 1. On-Deck VAS: Value added services which are available through the carrier; 2. Off-Deck VAS: Value added services which are
available through D2C models
Source: Analysys Mason, Industry Inputs

7. Mobile VAS: Recommended Solutions 7
Global experience suggests that a policy framework without licensing and
market determined revenue shares is the right way forward
1. Policy Framework without 2. Licensing with Market Determined 3. Licensing with Policy
Licensing Revenue Share Determined Revenue Share
• A focused licensing regime needs to
• No separate VAS license needs to • A broader licensing framework, which
Position
be in place for VAS, including
be issued – but a policy framework leaves revenue shares to be driven by
regulation recommending minimum
to support VAS providers is required market forces
revenue shares
• Licensing will ensure that the VAS
• Revenue shares should be left to industry gets support on critical issues • Revenue shares remain a critical
market forces, as that will help drive such as MIS reconciliation and dispute element in the mobile VAS ecosystem
innovation redressal and are currently hampering growth
Rationale
• Creating licenses will increase the • Revenue share is a commercial and investment in the industry because
agreement between entities and cannot of their low levels
costs of the MVASPs and innovation
will suffer as smaller VAS providers be mandated by the Government • Once revenue shares are regulated,
will not be able to bear the attendant • Once off-deck services gain traction, other operational issues such as MIS
costs of a license market forces will drive revenue shares would also get addressed
without intervention
• Formation of a self governed
industry forum to formally represent • A VAS licensing framework that will • A VAS license framework that will
Potential
Solution
the VASPs regulate MIS, dispute redressal and regulate revenue shares, and
• Formation of a premium number other issues, but will leave revenue recommend measures for
policy which will govern the shares to market participants implementation and monitoring
operation of short codes
Source: Analysys Mason, Industry Inputs

8. Mobile VAS: On-Deck VAS Providers (Recommended Solutions) 8
For on-deck, an industry self-governing board that can act as a formal
forum for participants in the MVAS ecosystem can be beneficial
On-Deck VAS
Formation of an Industry Association for Mobile VAS
Providers in India
COAI /
IAMAI
AUSPI
Formation of an
1. Self governing VAS forum
MVAS Authority
2. Board can draft guidelines for MIS
MVAS Industry reconciliation between mobile VAS
Governing Board providers and carriers
3. Act as a forum for grievance redressal
and issue directives for action
Members From
MVAS Services Stakeholders Across
Handset 4. The functioning / structure of the board
Providers the Value Chain Manufacturers
can be modeled after the ASCI1
Technology
Carriers
Platform Providers
Note: 1. ASCI stands for Advertising Standards Council of India
Source: Analysys Mason

9. Mobile VAS: Off-Deck Providers (Challenges) 9
However, billing remains a major issue in addition to carrier control over
end user pricing of off-deck services
Off-Deck VAS
End user Price for Voice and Non-Voice ARPU vs. Price of Popular Game in Different
Offerings in India (2007 & 2010)1 Countries (INR)2
INR 30 30
INR
30 2500 (2%)
2171.7
2000
(3%)
20
1507.5
1500
15 15
10 10 10 10 10 1000 (17%)
10 722.3
(10%)
500 444.6
(33%)
3 3 3
161.6 119.7
54.0 44.6 42.8 44.6
0 0
Voice Premium Mono Tone Poly Tone Wallpaper CRBT India USA UK China Malaysia
(10 mins SMS Download Subscription
call)1
2007 2010 ARPU Game Price
Note: 1. For a 10 minute call; 2007 rate assumed at INR 1 per minute, 2009 rate at INR 0.5 paisa per second, Cost of per transaction for SMS,
monotone, polytone and wallpaper, monthly subscription for CRBT; 2. India (Paid game on Indiatimes), USA, UK, China (Paid game
on Apple Apps Store), Malaysia (GamesUnlimited; Maxis games site); Most games in China are cracked and available for free.
Number in parenthesis indicates the cost of game as a % of ARPU
Source: Analysys Mason, Wireless Intelligence, Industry Inputs

10. Mobile VAS: Off-Deck Providers (Recommended Solutions) 10
A policy framework (without licensing) that will mandate a premium
number policy can potentially address the challenges for off-deck billing
Off-Deck VAS
Proposed Framework for Premium Number Policy
Central Short Code (CSC) Agency
Created & Mandated by TRAI • Short codes
Short Code Operational
allocated and • CSC agency to be set up as a
maintained by
Across Carriers licensed entity under TRAI
this central
agency • Licensing of CSC agency allows it to
• Pan India access enter into agreements with other
Carrier
1
Carrier
2
…. Carrier
n
across all
licensed entities
carriers
• Mandated • TRAI to mandate a ‘Rate Card’ under
turnaround time
of activation
IUC regulations, which includes billing,
Host carrier pays
User Billed
VASP; Keeps share
across carriers origination and termination charges for
by carrier
to cover carriers whose customer originates
for service
interconnection and service access request
other costs
• This policy will guarantee pan India
access across all carriers
VAS
Provider
• VAS Provider Offers
Services to Users
Across Carriers
Service Flow Revenue Flow
Source: Analysys Mason

11. Mobile VAS: SMS (Challenges and Recommendation) 11
Mandating the incorporation of a standards based local language solution
on all handsets can help drive SMS penetration
SMS Penetration
Enablers: Local Language Support on Handsets
SMS Penetration, 2010
100%
100% • Mandate standardization of character set of local
80%
language fonts
75%
 Partnering with an organization like CEWiT and others
47% to get key standards in place for:
50%
– Indic 7-bit encoding (improves text payload in a SMS)
25% – Simplified Indic keypad design (to make user adoption
easy)
0% – Memory efficient font libraries (critical for distribution
Philippines China India and field support)
• Mandate incorporation of local language
• Apart from lower SMS pricing in Philippines and China than standards on all handsets sold in India
in India, the ability to message in local language is the key
 Partnering with top handset vendors to motivate
driver for high SMS penetration
adoption of new standards by mid-2012 and launch of
• Different handset OEMs use their own proprietary standards an industry-wide education campaign
for Indian language text, creating interoperability issues
Source: Analysys Mason, Centre of Excellence in Wireless Technology (CEWiT) India Reports

12. Mobile VAS Trends 12
In the future, emerging areas of m-commerce & advertising, and changes
in the VAS value chain will modify the way services are consumed
• Backward integration across • Easy integration of VAS products on • Carriers offering ad-based services
the three segments e.g. to the carrier SDP / network for secondary revenue streams
TPE moving into content • With initiatives like START/STOP, • Partnering with payment companies
aggregation focus is on enabling users to for additional revenue from mobile
• UGC gaining adoption experiment with multiple products shopping and remittance
Content Repurposing / ISV4
WAP Carrier Billing
Carriers SMS1 MPG2
Voice Online Ad3
Content Content Product/
Developer Aggregators Apps Retail Cash/ CC/ DC
Handset OEM
Online Carrier
UGC Device 3rd Party VASP
Integration WAP SMS Voice MPG2 / Ad3
Technology Platform Enablers Managed Services / Network OEM /VAS SI
Advertising/Profiling/Relevance Platform
Mobile Commerce Platform
• Handset OEM is
offering VAS under its
• Carriers deploying • M-commerce solution • Network OEMs are
profiling / relevance provider with one or
brand on multiple sales providing technology
platform for better more capabilities such
channel: online, retail platform for carriers, e.g.
targeting as mobile payment,
and mobile Network OEM CRBT
• D2C players using
• Ad-networks forming mobile banking, money platform integration in
dedicated sales force to transfer and mobile carrier network
alternate payment shopping
sell branded inventory
channels
Note: 1. STK embedded content is included in SMS; 2. Mobile Payment Gateway; 3. Ad based revenues; 4. Independent Software Vendor
Source: Analysys Mason, Industry Inputs

13. Themes Introduction 13
Based on these structural changes and market trends, we have identified
nine themes which will have a significant role in shaping MVAS in India
Category Current Situation Key Trends
Category Themes
• UID accepted as KYC will increase share of G2C; carriers
• Current scalable models use prepaid cards, and not
1 • Commerce pushing financial inclusion also a key driver (banking,
mobile; pilots by carriers, banks, D2C
domestic remittances)
• Entertainment • Services around music and gaming has seen early • New products such as streaming music, full song download
2
Services adoption among mid ARPU segment and mobile games
• Multiple pilots, with few scalable models (e.g. RML, • Utility apps and affordable feature-phones to drive adoption
3 • Utility Services
IKSL), Location based services of productivity and livelihood enhancement services
Consumer
VAS • Emergence of new monetization models based on micro
• Carrier promoted SNCs (e.g. AirtelFrenz)
4 • Community Services transactions, content sales (e.g. Rocketalk) with carrier
aggregating audience on an ad monetization model
marketing support, and increased off-deck usage
• Limited services on EDGE with very poor user • Launch of 3G services by 2011 by all major carriers, with a
5 • Mobile Video
experience strong video services portfolio (e.g. mobile TV, video calling)
• Emergence of affordable android based phones, app store
• Device Apps and App • Carrier app stores dominate; D2C app stores facing
6 push by handset OEMs, launch of 3G, utility apps (e.g.
Stores issues of billing as credit card penetration is low
railway booking)
• Among all the network services such as CRBT, CMS, • CRBT has reached a mature level of adoption, while few
Network
7 • Network Services Roaming, Recharging, Location Enablement, CRBT network services such as voice mail is limited by cultural and
VAS
contributes significant share to total MVAS market price points
• 3G and better device form factors expected to enhance
• SMS / display ads used for lead generation and
8 • Mobile Ad / Marketing effectiveness of display advertising and help ecosystem
digital content sale; poor user experience
Enterprise growth
VAS • Emergence of enterprise mobility providers with vertical
• Enterprise messaging solutions (e.g. Valuefirst) ,
9 • Enterprise Solutions specific, carrier / software agnostic middleware solutions
Sales force management
(e.g. Mobien)
Source: Analysys Mason

14. Mobile Data 14
There appears to be a latent demand for connectivity in markets with low
PC / internet base as India, which gets fulfilled by mobile internet
Trend of Non-Voice Revenue and Mix • While traditionally, data access has
(Messaging vs. Data and Others) remained a small piece of the overall
% of Non MVAS pie, recent trends suggest that
– Voice
Revenue crucial success factors for data access are
30.4% 33.6% 12.1% 19.4% 28.0% 30.0% 14.2% 23.4%
now falling in place
10% 12%
44%
37% • Data growth will be dominated by
56% 35% smartphone and dongle / CCD users, but
62%
52% 76%
91%
emerging applications / services indicate
that data usage can be driven on feature
63% phones as well
53% 56%
38% 44%
37%  Social networking has exploded as a service
24%
9% in India, and carriers and handset OEMs are
Q1 2009 Q3 2009 Q1 2009 Q2 2010 Q1 2009 Q1 2010 Q1 2009 Q2 2010 increasingly promoting SNC applications on
Maxis Vivo Telekomsel1 Vodacom
their networks / devices
Data Messaging Others
Note: 1. For Telekomsel – some share of other VAS included within data
Source: Analysys Mason, Industry Inputs

15. App Store 15
It appears that a scalable model for app stores in India would be carrier
app stores in partnership with OEM / OS companies
Three Kinds of App Store Current Mapping of App stores and CSF1
• Revenue • High rev share
• Carriers have a strong hold in share is less • Provides • Provides high
Developer
Carrier
the value chain of mobile • No developer continuous revenue share
Community forum, except support to to developers
applications. They provide
App Store
Critical Success Factors
seamless billing and multiple Airtel developers
business model
• Better profiling • Profiling based
User of its on handset
• Better user
App Store
Experience / subscriber model
• OEM / OS with their better • Poor user • Better user
interface
Relevance
OEM / OS relationship with developers interface interface
App Store provide rich portfolio of mobile
applications
• Seamless • Unable to • Unable to
billing implement implement
Monetization / • Ability to single click single click
Billing implement checkout and checkout and
• Third party app stores such as subscription subscription subscription
model plan plan
Third Party by Getjar have the lowest share
App Store today of overall revenues in the
apps market in India Carrier OEM / OS Third Party
App Stores
Favourability of CSF1: High Medium Low
Note: 1. CSF stands for Critical Success Factors
Source: Analysys Mason, Industry Inputs

16. Mobile Community Services 16
Emerging services within mobile VAS also include social networking,
instant messaging and microblogging
Classification of Mobile Community Services Business Models for Mobile Community
based on Primary Service Services
Primary Mobile Extension of Online Community Services
Description Key Service Providers
Service
• These communities are feature rich platforms that
allows a wide range of activities including sharing of
• Includes sharing of text, photos and videos in addition to playing games
Social multimedia content
Networking along with posting • Broadband connection and a wide screen is required
Community status messages to for taking advantage of the features available
a group of friends
• Mobile version, usually an application, is a strip down
version in terms of features and allowed activities
• Includes real time
Instant Custom Built for Mobile (Mobile Only Services)
P2P communication
Messaging
over mobile internet • These communities have mobile as the primary
access channel and the platforms are highly
optimized for mobile usage
• Features offered through these communities are
• Includes sharing of customized to work on slow 2G data channel, as well
Micro-
status messages
blogging as other bearer channels
only
• The primary target users are ‘mobile first’ data users
Source: Analysys Mason, Industry Inputs

17. Utility Services 17
Livelihood enhancement services, especially in rural areas, will play a key
role in the development of this sector
Case
Use Case of Utility Services Study
Description User base Pricing
~ 0.3 mn farmers
• Alerts related to crop price, have subscribed to • Price: INR 175
RML • Provides
RML (Q1 2010) (USD 3.8) for 3
weather updates agricultural and
Information So far, the service months; INR 75
• Stocks and news alerts commodity pricing
Access to Alert has reached more (USD ) per
information service
Information • Location based services and Services via SMS
than 1 mn farmers month by Idea
maps across 15K villages Cellular
(Nov 2010)
• Push email
• Subscription
• Voice based rural
Utility Services
Behtar fee: INR 2 for 1
information services
Zindagi Launched in March day and INR 30
on livestock, mandi
• Mobile education, tutorials for Mobile 2011 for 30 days and
Access to English in multiple language
prices, fishery
INR 1 per
health advisory and others
Opportunity
• Job listings on mobile minute
• Connects teachers More than 25,000
LifeLines – in rural areas with
academic query- • Transaction
• Health support on mobile, Education education experts
answer sets have charge of INR 5
including regular health tips whom they can
Mobile been facilitated (USD 0.1) per
• Mobile governance services consult on
under this service in call
Access to such as tracking passport Education educational queries
2010
Infrastructure application, details of utility via IVR
payments • Provides financial Over 180,000
Eko
• Financial inclusions via mobile services to the un- customers across
and mobile ticketing Financial banked population Delhi-NCR and • Free
in urban as well as Bihar-Jharkhand till
Inclusion
rural areas October 2010
Source: Analysys Mason, Industry Inputs

18. Mobile Commerce 18
M-Commerce will be another critical growth driver with carriers and D2C
providers experimenting with multiple models
Banking Domestic Remittance
• Mobile banking reduces the transaction cost for banks and Inter-state Remittance (2009) • Under the current regulations,
provides a convenient channel for account holders Domestic Remittance Size mobile enablement is possible
~USD 12 bn
(Migrants) only for domestic remittance
• Mobile will add relatively higher value for serving the needs of the
un-banked segment for banking and remittance Via Post Office ~USD 1.8 bn1 • BC based remittance will form
the dominant portion, driven
• BC based banking is expected to be popular amongst the un- Via ‘Friends & Family’ ~USD 10.2 bn
by urban to rural channels.
banked segment
Informal (non-migrant) ~USD 13 bn Users will shift to mobile
• However, given low deposits this does not translate into a remittance for convenience
Average Annual Transaction and cost
significant market opportunity Value per Worker
~USD 150
Payments
G2C Payouts
• Under the current regulations, there are two models for payment
• BC accounts opened with UIDs MGNREGA Project FY-09 FY-101 using mobile: linked payment instruments and stored wallets
will enable the unbanked model
population to receive benefits Districts covered 615 619
from government • The linked payment model has witnessed some traction for utility
Total Issued Job
Cards (mn)
100 109 bill payments and some small value shopping
• Government gives a lot of cash • The stored wallets model is relatively new, and has the potential
benefits like old age pension, Number of
to gain traction for small ticket items and eventually as an
households 45 43
disability pension, widows benefited (mn) alternative to credit cards for digital payment
pension and MGNREGA
payment Budget outlay • However, regulations do not allow cash out, which can potentially
6.5 8.5
(USD bn) slow adoption as users are reluctant to lock in cash
Source: Analysys Mason, FICCI Frames 2010, Company Reports

19. Forecasts: MVAS Industry 19
With the above market and policy initiatives, MVAS revenues is expected
to account for as much as 51% of incremental industry revenues in 2015
Mobile VAS Market Potential (INR bn) & Its • Indian MVAS industry will reach contribution
Share of Telecom Revenue levels seen in other emerging markets such as
31% 31% Malaysia and China
27% 671
19
• Data access will be the biggest revenue driver
603 37
22% 14
35
based on handset based access and CCD /
18% 480 219 dongles
16% 9
34 202
368
6
34 182
34 • CRBT will decline in revenue contribution due to
291 28
4
32 123
148 poor per unit economics for carriers and end
213 159 23
2
28 user affordability
132 81
19
96 16 62 201 215
13
48
58
88
150 • SMS penetration is expected to stabilize at the
25 49
2010 2011 2012 2013 2014 2015 current levels due to consumer behaviour and
literacy issues unless local language can be
Mobile Internet (Handset) Dongles / CCD Data Access
IVR Messaging introduced
CRBT Others1
Share of MVAS
Note: 1. Others include m-commerce and CMS
Source: Analysys Mason, Industry Inputs

20. Forecasts: MVAS Industry – Data Users 20
This growth is driven primarily by a forecasted 534 mn data users in 2015
across 2.5G, 3G and 4G, contributing 54% of total mobile VAS revenue
Data Users (mn) • Of an estimated active base of 1.1 bn
subscribers in 2015, 154 mn subscribers are
expected to access data on 2.5G and 314 mn
534 subscribers on 3G
66 • Adoption of mobile handset data will continue to
420 grow, with reduction in price per MB for HSPA
48
data, increasing penetration of feature-phones
and smartphones, as well as availability of
303 content and applications
28
• User base of 22 mn is expected on 3G handsets
201 468 in 2011, contributing a data ARPU of INR 133 in
18 372 2011 going down to INR 49 in 2015, with access
137
12 275 accounting for a major share of the revenues
83
7
125
183 • EVDO dongles are expected to dominate the
76 mobile broadband access market from PCs, as
they provide relatively better capacity and cost
2010 2011 2012 2013 2014 2015
per MB than HSPA
Handset Data Users Dongles & CCDs
• 4G / LTE dongle and CCD base is expected to
reach 21 mn by 2015
Source: Analysys Mason, Industry Inputs

21. 21
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