India VAS market to cross 20,000 cr by 2014

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  •  Dec 12, 2013
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Decline in voice services revenue has triggered the VAS growth, says IBM

New Delhi: The revenue from value-added services (VAS) is expected to touch Rs 21,000 crore by 2014, predicts IBM while releasing a new report on domestic mobile market titled 'Be smart, drive VAS: Strategies for success in a growing telecom market'.

The company says that the growing competition has caused a significant decline in the average revenue from voice services to the telecom operators and hence they need to have a strong focus on their VAS strategy .

With over 740mn mobile subscribers, India is also known for the lowest ARPU, which today stands at a low Rs 141, bringing red mark to the balance sheet of almost all the operators, reports PTI.

According to IBM, this will only go down further as 80% of the revenue now comes from voice services, and unless operators do something urgently and innovatively on non-voice front, it will continue to decline.

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