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Dr. Arindam Chaudhuri, Editor-in-Chief, 4Ps B&M Chief Consulting Editor's Desk
Rajita Chaudhuri
Dr. Arindam Chaudhuri, Editor-in-Chief, 4Ps B&M Editor-in-Chief
Dr. Arindam Chaudhuri
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Bridging The Digital Divide

Issue Date - 16/06/2011
 
Digital inclusion has in it the ability to empower people in the remotest corner of the country. Given the increase in mobile penetration in the country, it is time that digital infrastructure be leveraged. Mobile Value Added Services will not only help in digital empowerment, but also help achieve inclusive growth. 4PS B&M analyses the Indian MVAS market which is estimated to be worth Rs.480 billion by 2015.

Last Mile Services

With more than 840 million subscribers the mobile phone has definitely become ubiquitous in India. TRAI estimates that by 2015 the mobile penetration in India will be approximately 100% with 1.25 billion subscribers. Given the advancement in technology, mobile phones are capable of supporting powerful applications which empower (information exchange via SMS, personalised health alerts, accessing bank account details, etc.) citizens. It is this compatibility that makes mobile phones a perfect medium to deliver a variety of content and services to the Indian masses in a cost effective and efficient manner, even without physical access.

 
The Next Wave of Growth

From the early days of P2P SMS, the industry has witnessed a growing portfolio of services to include games and contests. Mobile Value Added Services, MVAS, industry is estimated to grow at a CAGR of 30.5% to Rs.482 billion by 2015 from the current estimates of Rs.122 billion. Telecom operators view MVAS as the next wave of growth and a large chunk of revenue is expected to flow from VAS in the near future. Declining ARPU, need for brand differentiation, the growing focus on entertainment related content and increasing user comfort with basic mobility services are the growth drivers of MVAS.

          
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