In A study conducted by the Internet Mobile Association Of India (IAMAI), indicates that mobile VAS has the potential of becoming a 67,100 crore market by 2015. The report states, ... growth will be driven mainly by mobile data (both on handsets and dongles/ connected computing devices) contributing 54 per cent of the overall MVAS market by 2015.
Developed after consultations with over 50 players across the telecommunications industry, including leading operators, technology platforms, and VAS players, the report highlights the impressive long-term potential of the VAS industry. The impact of VAS is not going to be only on the direct revenue, but also on the broader spectrum of entrepreneurship and innovation in India.
The report also stresses the need for policy enablers and market mechanisms. It points out that the fact that today VAS providers face challenges on account of dispute redressal. There are problems due to lack of an alternate billing mechanism and delays in allocation and implementation of short codes. Globally, mobile VAS is considered to be a big source of revenues for telecom operators.
In the Indian environment where voice and data tariffs are declining, VAS could pose as an opportunity for mobile operators to improve their profitability.
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