3G To Boost VAS Revenue In India: DoT

BWA and 3G have potential to transform the character of Internet/ broadband scenario in India, commented Vijayalakhsmi Gupta, member of finance, Department of Telecom, Government of India while inaugurating the 3G INDIA 2010. “On one hand, BWA will overcome the key hindrance of problem of ‘Right of Way’ in India, on other hand 3G has the potential to make the mobile phone, a ubiquitous device for accessing faster internet.” “3G Technology will drive the next round of sustainable growth for the Indian market through convergence of entertainment, infotainment and voice communications into one single device. The key drivers for the growth of 3G in India will be innovative content, improved customer services and increased affordability of handsets. These drivers will help ensure growth of 3G not just in urban areas but in rural areas as well.” Adding more to this, Kanika Atri, head of marketing, Nokia Siemens Networks India, said, “The advent of 3G will usher a new era of telecom revolution in India. We believe that 3G will make wireless broadband ubiquitous and positively contribute towards socioeconomic development of the country.” “Video content will definitely be an important driver on 3G. Video services will contribute to ARPU as well as drive data & bandwidth consumption. A robust video content supply chain and understanding of how to sell video content is a must for every operator to increase VAS ARPUs,” added Jai Maroo, Director, Shemaroo Entertainment. Commenting on the Post 3G Era in Indian telecom industry, Vijayalakhsmi, said, “After 3G rollout, while Video-on-demand and other live streaming services may gain prominence amongst the high ARPU customers, enhanced bandwidth may also lead to increased usage of existing mobile VAS (Value Added Services) services. Currently, the VAS market is worth Rs 110-120 billion, which translates into approximately 10 percent of wireless industry revenues. The share of VAS in wireless revenue is likely to increase to 12-13 percent by 2011. This growth would be driven by increased operator focus on VAS due to continuous fall in voice tariffs, increased penetration of feature rich handsets, availability of vernacular content and increased user adoption of VAS applications. Further, the market is likely to witness different VAS being offered, which were earlier not possible over the current 2G/2.5G Network.”

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