Mobile VAS market to generate over Rs 55,000 cr by 2015

With broadband wireless access and 3G network roll outs, the mobile value added services market is expected to generate over Rs 55,000 crore in the next four years, according to a report by consultancy firm PwC.

According to the PwC report titled -- Value Added Service: The Next Wave -- it is now time for India to evolve from the well established mobile messaging and commoditised voice play to focus on customer segmentation based data play.

The report said by 2015 the total revenue from communication services is expected to cross Rs 20,000 crore, while the total revenues from entertainment services is would reach 25,000 crore and the information services vertical would contribute Rs 7,900 crore.

"India has very diverse consumer segment based on socio, economic, cultural and linguistic diversity.

The diversity, coupled with a young and increasingly affluent population and the fact that India is yet to reach its potential when it comes to broadband penetration are all strong indicators that Mobile VAS has a huge potential," PwC India Executive Director – Consulting Sivarama Krishnan said.

We expect India to set benchmarks on VAS just as it did in the pure voice segment, Krishnan added.

The report assesses the current state of VAS ecosystem and its future course focused on urban India and covered 1,050 respondents across 10 cities - Delhi, Mumbai, Hyderabad, Bangalore, Chennai, Bhubaneswar, Kochi, Ahmedabad, Pune and Kolkata.

On the road ahead for VAS, Krishnan said "with handset manufacturers entering VAS ecosystem with powerful operating systems and associated Application Stores, we will see shifts in the industry with handset players, VAS vendors and service providers collaborating and competing with each other."