Value Added Services

INDIAN ECONOMY- OVERVIEW

Second largest emerging economy in the world. Industry growth at 8.5% & Services Sector growth at 10.8%. Service Sector contributing 55% to GDP.

Customers continuously want more from their phone. They use their cellular phones to play games, read news headlines, surf the Internet, keep a tab on astrology, and listen to music, make others listen to their music, or check their bank balance. Spoilt by choice, the mobile phone subscribers are beginning to choose their operators on the basis of the value added services they offer. The increased importance of VAS has also made content developers burn the midnight oil to come up with better and

While the decline in ARPU has been accelerated by the recent marketing interventions like lifetime-free schemes; this has been a consistent trend for some time. It is also a function of the structure of the Indian mobility market. At 80%, the prepaid segment completely dominates this Indian mobility market.

The growing intensity of competition has led to more services for the end user at lower prices. This has had an effect of stimulating demand and thus increasing the category adoption rate. As more users have been added to the subscriber base, it has led to a further downward pressure on operator costs.

Mobile value-added services (VAS) are those services that are not part of the basic voice offer and are availed off separately by the end user. They are used as a tool for differentiation and allow the mobile operators to develop another stream of revenue.

Value added services is a term that is used to refer to service options that are complimentary to but also ancillary to a core service offering. The term is utilized widely in a number of industries, most notably telecommunications. Value added services are often introduced to customers after the client has purchased the core service that these ancillary offerings center around.

Value added services like MCommerce, Marketing, Special Information, Ring tones etc offer venues of additional revenue.

VAS contributes 10 14% of total telecom revenue .

Non-voice revenue increasing.

Present contribution > 50% through SMS.

The Role of VAS

Operators are facing cutthroat competition and with the call rates in India being one of the cheapest in the world, the margins are very low. It has become the flywheel of telecom growth and a large chunk of revenue for operators is likely to come from VAS services in the years to come. But it is not only effort from operators which is driving the growth of VAS, there are other factors contributing to it.

The Mobile VAS industry in India is estimated at Rs. 4380 crore at the end of 2007 and is estimated to grow at 60% to touch Rs. 6760 crores at the end of 2008. This space is currently completely dominated by entertainment services and comprises of; P2P SMS -Rs. 1640 crore; Ringtones (including CRBT) - Rs. 1526 crore; P2A & A2P- Rs 728 crore; Games & Data- Rs. 300 crore; Others (MMS etc) - Rs 186 crore.

Environmental factors driving VAS

Booming
This booming economy has created job opportunities and increased the spending power of an average Indian.

economy

Increasing comfort levels with basic mobility services- These users are very
comfortable in using their phones and want to exercise the option of doing more on them beyond basic voice applications and these users will continue to drive the market and evolve into

Environmental factors driving VAS (cont.)

Personalization of the digital world and digital devices-The enormous success of Caller Ring
Back Tone (CRBT) is an excellent example which illustrates that users are ready to adapt to any service which offer them the option of personalization.

Focus on movies & music - Movies & Music are

the passion of India. Most of the rich content available to the end users revolves around these two, with Ringtones of popular Bollywood songs,

Environmental factors driving VAS (cont.

Reduction in call rates & CPP initiation - CPP (Calling Party Pays) was an important initiative which unshackled the mobility market and allowed many more subscribers to enter the mobility category thus reduction in call rates has ensured that the expenditure on voice for a typical user has gone down over the years.

Market efforts driving VAS - For the

operators, success of VAS has become important for their growth. This has led to a

VAS emerging as major Revenue Earner. CM

D OF B SNL Mr. KU LDEEP GOYAL , SAID

Mobile VAS in India can be further categorized into the following broad categories:
P2P: Person to Person SMS, the most common
form of mobile communication apart from voice .

Ringtones: This is inclusive of monotunes,

polytune also includes CRBT (Caller ring back tones). Games & Data: Games include download of one play games by operator ; Data include download

Mobile VAS in India can be further categorized into the following broad categories: (cont.)
P2A & A2P: P2A (Person to Application) SMS inclusive of
messages sent by end users for contests & for seeking other information like news & updates; (A2P)Application to Person SMS inclusive of service push by enterprise service providers; Also include calls on IVRS for all other services like astrology

Others: Include MMS (Multi Media Messages) &

subscription charges for WAP services

VALUE ADDED SERVICES IN INDIA ARE PROVIDED BY Bharat Sanchar Nigam Limited Bharti Airtel Limited Reliance Communications Vodafone Idea Spice Telecom

SMS, MMS, email, advanced video features, peer to peer video sharing, etc taking part in the contests in TV through SMS Voice based SMS for blind people. subscribe Bollywood clips &ringtones Cricket and Games Dynamo Kid

Pure voice based value added services

(Available in both landline and mobile telecom system) In a landline - voice based ring tone download facility, Three party conference Tele- Horoscope/ Tele- Astrology Music-on-demand News-on-demand Opinion polls Quiz/ Contests City Infoline, etc

Many SMS based Value added services are available to the Mobile subscribers of BSNL through THE SIM CARD THE SHORT CODES The VALUE Added services forming part of the Menu are listed

SERVICE NAME ASTROLOGY CRICKET NEWS ELECTION HEALTH TIPS STOCK

ACTIVATE *456*21# *456*55# *456*31# *456*527# *456*636# *456*41#

DEACTIVATE *456*22# *456*56# *456*32# *456*528# *456*637# *456*42# *456*507# *456*97# *456*91# *456*513#

MOTIVATIONAL QUOTES *456*506# AUTO TIPS DIWALI FREEOM *456*96# *456*90# *456*512#

BSNL has launched 2 broadband value added services Live Video Tutoring - is aimed at giving a personalized Tutor service to students within India and outside through Indian tutors located anywhere in the country. BSNL Hungama portal - will offer subscribers services like audio music, video music and gaming facilities at monthly charges.

1. 2. 3. 4. 5. 6.

NEW DELHI MUMBAI CHENNAI KOLKATA BANGALORE HYDERABAD

S.NO ARE REPRESENTING THESE STATES

Call Conference
There are times when we have wished that we could speak to a group of people simultaneously . May be wanted to gossip with friends , or hold discussions with clients . Now you can have the privilege of a teleconference with upto 6 people , at the punch of a few buttons . HOW TO TALK TOGETHER To make the first call Dial normally Then put the current caller on hold Press 2 OK. DIAL THE NEXT NUMBER To get everybody talking together Press 3 OK To add another person to your conference Press 2 OK .

Call Waiting
This feature enables you to speak to two callers, one at a time, without hanging up on either one of them. When this network service is activated, the network notifies you of a new incoming call while you have a call in progress. If another person tries calling you midway a conversation , he/she will hear a message informing him/her that your line is busy, while you will hear beeps at intervals. You can accept the second call while putting the first call on hold.

Divert your calls

You can choose any one of them. PHONE BUSY ( whenever you receive a call on your mobile phone while attending another call, it will get diverted to your VMS ) NO REPLY (if you can't or don't want to answer a call, it is automatically forwarded to your VMS after few seconds ) NOT REACHABLE ( if you are not in the BSNL coverage area or if your handset is switched off, your call is diverted to your VMS.) UNCONDITIONAL ( in case you don't wish to be disturbed, you can direct all your calls to your VMS)

Airtel Live is an entertainment portal, the first ever by a fixed line service provider, which will offer a variety of content in the arena of music, sports, astrology, jokes, ringtones etc. Content on Airtel Live can be accessed by dialing 4646. Services on Airtel Live include: (a)Ringtones Download a wide range of songs or music clips as ringtones

(c)News Latest news including general and business news (d)Astrology services (e)Jokes Airtel is providing a range of value added services like Voice Mail Service, Directory Assistance, Delayed Hotline, Centrex and the like. The recently launched caller ring back tone service Hello Tunes has already

SERVICE NAME RINGTONES CRICKET NEWS ASTROLOGY LOVE STOCK ALERTS JOKES

BSNL Rs 7 Rs 30/month Rs 30/month Rs 30/month Rs 30/month Rs 30/month .8p or Rs 1

AIRTEL Rs 10 Rs 6/min Rs 1 Rs 30/month Rs 1/min Rs 30/month Rs 5

SERVICE NAME RINGTONES CRICKET NEWS ASTROLOGY LOVE STOCK ALERTS JOKES

BSNL Rs 7 Rs 30/month Rs 30/month Rs 30/month Rs 30/month Rs 30/month .8 p or Rs 1

VODAFONE Rs 10 Rs 49/month Rs 3/sms Rs 30/month Rs 30/month Rs 30/month Rs 30/month

BSNL provides VAS at cheapest price.

Entire Nation is divided into 4 circles Metros, A, B & C Metro circle Delhi, Mumbai, Kolkata & Chennai A Circle: States of Maharshtra, Gujarat, Andhra, Karnataka & Tamilnadu B Circle: States of Kerala, Punjab, Haryana, Uttar Pradesh, Rajasthan & Madhya Pradesh C Circle: States of Himachal, Bihar, Orissa, Assam, Kashmir and North East States Circle Definition: Areas classified on the basis of subscriber and revenue potential, where Metro circle has the highest potential and C circle has Faded area in the regions shows cellular network coverage the lowest

Growing eCommerce will also have a positive rub off effect on m commerce because users will have a higher level of familiarity and comfort with online transactions.