Mobile Value Added Services in India Growing to INR 159 Billion by 2011

Mobile Value Added Services ‐
Mobile Value Added Services India
April 2009

Executive Summary
 Estimated worth INR 62 bn in 2008; expected to grow to INR 159 bn in 2011
Market  Value added services (VAS) accounts for 10% of operators revenue
 Services offered can be categorized into information, entertainment and M commerce
Drivers: Challenges:
Challenges:
 Demand Side  Supply Side  Biased revenue sharing model
Drivers & – Increasing consumer – Declining ARPUs  Lack of copyright protection and
demand for VAS – Rising mobile teledensity authentications standards
Challenges – Medium for advertising – Introduction of 3G based  Dominance of pre‐paid customers
– Demand for regional
Demand for regional applications
content  Lack of consumer awareness
– Growing rural market  Lack of purchase of feature rich handsets
 Increased focus of PE/VC firms
 Growth in demand for mobile music and gaming
Growth in demand for mobile music and gaming
Trends  Partnerships between mobile manufactures/ operators & MVAS players
 Growth via acquisitions
 Strong demand from corporates for enterprise VAS

 A highly fragmented market with many small and medium sized companies
h hl f d k h ll d d d
Domestic Players Foreign Players Content Technology
Aggregator
Provider/Creator Enabler
Competition • OnMobile • Affle
• Tanla Mobile • July Systems • Geodesic • Tanla Mobile • OnMobile
•G d i
Geodesic • Mauj • Hungama Mobile
bil • One97
• Voice Gate
• Affle • IMI Mobile • ACL Wireless

MOBILE VALUE ADDED SERVICES – INDIA.PPT 2

• Introduction
• Market Overview
• Drivers & Challenges
• Trends
• Future Outlook
• Competition
• Key Developments
Key Developments


Indian Telecom Market has been growing with rapid increase in
CDMA and GSM mobile subscribers
Overview Mobile Subscribers (2008)
•Total Revenue mn
 2008 – USD 31 bn 200 GSM 193
•Total Subscribers – 300.49 mn (2008) 150 CDMA
120
 Fixed Subscribers ‐ 39.42 mn 100 69 68
 Mobile Subscribers ‐ 261.07 mn 50 26 41 45
8 11 21
•Tele‐density: 26.2% (March 2008) 0
•Projections: 2004 2005 2006 2007 2008
 Total revenues to increase to USD54 bn by
2012
Wireless Operators Market Share (Mar’ 09)
 Tele‐density of the country to go up to 50% 18%
Bharati
by end of fiscal year 2009‐10 25% Rcom
Vodaphone
 800 mn mobile connections by 2012
17% BSNL
 500 mn GSM subscribers by the end of Tata Tele
8%
2009 Idea
10% 13%
Others
9%

Note: Tele‐density means number of telephones in use for every 100 individuals


• Introduction
• Market Overview
• Trends
• Future Outlook
• Competition
Key Developments


Mobile Value Added Services market is growing strongly with
demand for entertainment services dominating the market
Overview Data and Voice Break‐up
• Mobile VAS market is worth INR 62bn in 2008 and is Data
Share of data revenue
forecast to reach INR 159bn in 2011 Voice is increasing
• Mobile VAS accounts for 10% of mobile operator’s
Mobile VAS accounts for 10% of mobile operator s 100% 5% 6% 7% 8% 10%
revenues
80%
• Mobile VAS can be categorised as –
60%
 Information ‐ News alerts, stock prices, air/rail ticket status, 95% 94% 93% 92%
40% 90%
bank account balance/transaction alerts etc.
EEntertainment ‐ S
i Songs, ringtones, caller ring‐back tones
i ll i b k 20%
(CRBTs), wallpapers, games, jokes etc. 0%
 M‐Commerce ‐ M‐payment, M‐banking etc. 2004 2005 2006 2007 2008

Market Segmentation MVAS Market Size & Growth
INR bn
2004 Games SMS VAS
Information 200 Non-SMS VAS
2005 159
Services
2006 150 +39% 128
Music
46%
2007 Ringtones/ 90
100 48%
Graphics
62 49%
2008(e) Video/TV 43
50 53% 54%
52% 52%
2009(e) M‐ Games to 47% 51%
48%
witness highest 0
0% 20% 40% 60% 80% 100% growth 2007 2008 2009(e) 2010(e) 2011(e)


Revenue sharing model is skewed towards mobile service
providers with other players receiving nominal shares

Content Provider/ Content
Mobile
Creators Portal/
operators
Aggregator

• Develop original • Aggregates • Support content
copyright content information    delivery to the
Description
• Create user‐defined • Distributes content customers
content to the mobile
operators

• Geodesic • Tanla Solutions • Bharati
Examples
l
• Mauj • Hungama Mobile • Vodafone
• OnMobile • Indiatimes Mobile • R comm

Revenue Split 10‐15% 20‐25% 60‐70%

Technology enablers and software developers act as a bridge between aggregators and operators

Players overlap across these segments


SMS is the most popular delivery platform in the market due to
its reach, convenience of usage and wide scale acceptability
Delivery Platform Cost (Aprrox) Trends Applications
• 44% of VAS services are via SMS • CRBT, wallpapers, jokes, infotainment search
Short Message • Caters to a wide audience as services • News, astrology, M‐Commerce, alerts, travel alert details
INR 2‐50/unit
Service (SMS) are available even on low‐end • Participating in contests, voting, information, advertising,
handsets enterprise IM, group messaging
enterprise IM group messaging
• Strong growth expected due to mass • Religious chants, music, voice SMS, Astrology
Interactive Voice appeal and ease of usage • Mobile banking, ticketing
INR 0.6‐5/min
Response (IVR) • Available in various languages • IVR based contact centers, self help centers, voice portals

INR 99/month
INR 99/month • Directed towards consumers using
Directed towards consumers using • Video Clips games themes radio blogging chatting SNC/
Video Clips, games, themes, radio, blogging, chatting, SNC/
for usage technologically advanced handsets UGC, internet search, advertising
WAP Portals (Download • Growth in 3Gmobile phones is • Mobile banking, ticketing, travel bookings
charges are expected to boost demand • Mobile e‐mail, mobile calendar, access to intranet and core
additional) business applications, mobile VPN
• Platform where interaction is in the
Platform where interaction is in the • Content download cricket updates jokes news alerts
Content download, cricket updates, jokes, news alerts
Unstructured
form of a continuous session as • M banking
Supplementary INR 30‐50/
opposed to an SMS • M marketing
Services Data month
• In a nascent stage with strong usage
(USSD)
expected in the future
Multimedia
M lti di •L
Largely used by the urban youth with
l d b th b th ith • S di
Sending picture messages, social networking
i t i l t ki
Message Service INR 3‐5/unit scope for usage in other fields • Insurance and banking companies for instant photo
(MMS) verification

High revenues can be generated from IVR as services are expensive and time consuming
Hi h b t df IVR i i d ti i


• Introduction
• Market Overview
• Trends
• Future Outlook
• Competition
Key Developments


Drivers

Increasing Consumer Growing Medium for Increase in Demand
Growing Rural Market
Demand for VAS Advertising for Regional Content

Demand Side

Drivers

Supply Side
pp y

Rising Mobile Tele‐ Introduction of 3G
Declining ARPU
Density Based Applications


Consumers are willing to use and pay for value added services
provided by operators
Increasing Consumer Demand for VAS Impact
• Consumers are increasingly using their mobile phones for music, entertainment, games and
information
• Mobile VAS is gaining acceptability among consumers as they are willing to pay for these
services
Propensity to use and pay for mobile services
Ring Tones 5.3
MMS 5.2
Music Download 5.1
IM 5.0
Games 5.0
E mail
E‐mail 5.0
50
LBS 4.9
Information 4.9
Video 4.9
Music Streaming 4.8
Logos 4.7
Banking 4.4
Adult 3.8

1.0 2.0 3.0 4.0 5.0 6.0
Least likely to pay for services Most likely to pay for service


Cost effective medium for advertising, increase in demand for
regional content..
Growing Medium for Advertising Impact
• Companies are looking at mobile advertising as a viable option to market brands by leveraging
the huge penetration of mobile phones
 Indian Premiere League (IPL) teams, namely Rajasthan Royals and Deccan Chargers, tied up with the
company SMS GupShup to introduce various applications for their fans like poll, predict man of the match
and talking to the cricketers
 Yash Raj Film’s “Dhoom” was the first movie to advertise through mobile phones

INR bn
INR bn Mobile Advertising Market
g
6 +132% 5.0
4
2
0.4
0
2008 2011
Increase in Demand for Regional Content Impact
• Regional VAS market valued at INR 8.5 bn in 2008
• Demand for regional/local content is expected to grow in future Players are capitalizing this
Demand for regional/local content is expected to grow in future. Players are capitalizing  this
opportunity  by developing various services
 In July 2007, Nokia entered into agreement with Malayala Manorama for a mobile based vernacular news
portal for subscribers based in Kerala
 In June 2006, Airtel in  association with IMImobile introduced a Tamil voice portal allowing ringtone and song
downloads, jokes and recipes to be circulated in the regional language
d l d j k d i t b i l t d i th i ll


.. and growth in subscribers in rural sector has spurred the
demand for value added services
Growing Rural Market Impact
• By 2012, 60% of mobile users are expected to be from rural India
• Availability of content in the vernacular language has led to a growing rural market with strong
prospects for ‐
 M‐banking
– State Bank of India partnered with Airtel to provide banking services in the rural areas of Uttaranchal, Andhra
Pradesh and Mizoram
 Customized services like Crop price alerts, Microfinance scheme information, Installment due alerts
– Airtel partnered with the Indian Farmers' Fertiliser Cooperative Limited (IFFCO), in January 2008, to set up IFFCO
Kisan Sanchar Limited in Rajasthan. Under this initiative, information regarding agricultural practices and weather
forecasts was available to farmers
– QUALCOMM, MSSRF, Tata Teleservices and Astute System Technology collaborated, in August 2007, to create the
Fisher Friend application, launched in South India, which facilitate fishermen with data on opportunities, risks and
market information
k ti f ti

Rural Mobile Subscribers
mn
600
+48% 441
400
200 92
0
2008 2012


Declining ARPU’s has shifted the operators focus towards VAS as
an alternate revenue source
Declining ARPU Impact
• Mobile tariffs in India is one of the lowest globally
• In order to generate large revenues providers are targeting customers by reducing tariffs and
enhancing the scope of the services provided
USD Mobile Tariff Per Unit
0.3
0.23 0.22
0.19 0.17
0 17
0.2
02 0.16
0 16
0.11 0.09
0.1 0.05 0.03 0.02
0.0
Belgium Italy UK France Brazil Taiwan Malaysia Thailand China India

• Falling ARPU has shifted the emphasis towards VAS for revenue generation
All India ARPUs
INR/Month GSM
400 CDMA
316 298 297
275 261 264
300 239
202 206 221 220
196 176
173 159
200 139 122 111
100

0
Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08


Increase in mobile teledensity coupled with emergence of 3G
services expected to support VAS market
Rising Mobile Tele‐density Impact
• Cellular market penetration has been rising steadily and is expected to accelerate in the future
with growth in affordable handsets
• This provides a strong market opportunity for players in the MVAS industry to tap into the new
consumers emerging while capitalizing on the existing customers
Mobile Tele‐Density
%
+33%
100
54.8 60.7
40.0 47.8
50 29.7
8.2 14.8 19.8
0
2005 2006 2007 2008 2009 2010 2011 2012

Introduction of 3G Based Applications Impact
• VAS providers have been constantly developing the services provided by the development of
new technologies
• Introduction of 3G is expected to usher in a wide spectrum of services as high speed internet
Introduction of 3G is expected to usher in a wide spectrum of services as high speed internet
access will be available allowing for various services such as mobile TV, movie on demand, live
streaming of music/videos, video SMS
• Strong competition in the market has made product differentiation among VAS players
imperative in order to generate sustained profits
 Players will need to develop technologies in order to strategically design products that meet changing
consumer preferences


Challenges

Biased Revenue
Sharing Model

Feature Rich
Handsets beyond Lack of Awareness
the Buying Power among Consumers
of Users
Challenges
g

Lack of Copyright
Protection and Dominance of
Authentications Prepaid Customers
Standards


Biased revenue sharing model and lack of awareness among the
consumers about VAS are the major challenges
Biased Revenue Sharing Model Impact
• Revenue‐sharing arrangement in the market is skewed toward operators
 Operators account for 60‐70% share in the M‐VAS value chain while content providers and aggregators
account for the remaining 40‐30%
t f th i i 40 30%
• Profits made are unable to percolate to all stakeholders leading to inequitable participation
across the value chain
• Service providers have high pricing powers as ‐
 they control data flow by blocking websites thus hampering reach of content players
they control data flow by blocking websites thus hampering reach of content players
 browsing applet, which controls information and the level of web access by users, is customized so as to
check direct communication between users and content providers
 large scale operators capitalize on the existing market scenario which constitutes of many small players in
the content space who are unable to bargain on profit shares due to stiff competition

Lack of Awareness among Consumers Impact
• Users are largely unaware of the various value added services that are provided due to lacking
initiative from operators
initiative from operators
• Lack of transparency in costs entailed during usage has acted as a deterrent for consumers from
using these services
• Other than promotional SMS’s, others means must be adopted by players to educate the
consumers


Large pre‐paid segment and lack of copyright protection are
acting as barriers to growth
Dominance of Prepaid Segment Impact
• Indian mobile market is dominated by the pre‐paid segment with 60% of individual having a
balance of under INR 10
Segmentation of Customers
i f bil l f id
Mobile Balance for Pre‐paid Customers

INR > 10
Prepaid 40%
INR 0‐10
Postpaid
P t id INR < 0
12% 88%
50% 10% have negative
balance

10% INR 0
• Largely, customers in this sector are unwilling to opt for value added services as they are unable
to afford these services
Lack of Copyright Protection and Authentication Standards Impact
• MVAS l
MVAS players operate without a license, which has lead to a fragmented market with many
t ith t li hi h h l d t f t d k t ith
small players
• Currently there exist no authentication standards for operators and aggregators for downloading
content
• However the Telecom Regulatory Authority of India (TRAI) plans on collecting a fee from those
However, the Telecom Regulatory Authority of India (TRAI) plans on collecting a fee from those
companies which offer VAS services based on short SMS codes


Large fraction of Indian consumers are buying low end mobile
phones which do not support high end services
Feature rich handset beyond the buying power of users Impact
• Indian consumers are unwilling to spend large sums on mobile phones with high‐tech features
• A large cross‐section of consumers own handsets which are unable to support the high end
services provided by players

Users in Different Handset Price Brackets (June 2006)

<2K 2K‐4K 4K‐7K 7K‐10K 10K‐15K >20K

6% 46% 22% 9% 11% 5% 3%

15K‐20K

52% of consumers can
avail of only basic services
such as mono‐tones


• Introduction
• Market Overview
• Trends
• Future Outlook
• Competition
Key Developments


Key Trends

Increased Focus of PE/VC
Firms

Strong Demand from Growth in Demand for
Corporate for Enterprise VAS Mobile Music and Gaming
Trends

Partnerships between
Growth via Acquisitions Mobile Manufactures/
Operators & MVAS Players


Large scale investments from PE/VC firms towards capitalizing
on the growth prospects in the market
Increased Focus of PE/VC Firms
• Private equity players have been bullish on the telecom sector in India with deals totaling USD PE/VC firms making
1.4 bn in 2008 Investments to tap
• Majority of players in VAS market are small or medium scale enterprises requiring investments the opportunities in
the opportunities in
growing VAS
• A growing VAS market has acted as an impetus for large scale investments by PE/VC firms market

Date Investor Target % Stake Amount USD mn
Mar 2009
M 2009 Norwest OnMobile 5 13‐
13 16
Jan 2009 Intel Capital and Silicon Valley Bank One97 n.a. 15
Oct 2008 Helion, Charles River Ventures SMS GupShup n.a. 11
Jun 2008 Kleiner Perkins Caufield & Buyers and Sherpalo Ventures PayMate n.a. 9
Jan 2008 Bessemer Venture Partners 0.9
Jan 2008 Wardferry India Reconnaissance Fund OnMobile 0.95 30
Jan 2008 Quantum Fund 3.54
Nov 2007
Nov 2007 Qualcomm Ventures
Qualcomm Ventures Kirusa n.a.
na 3
Nov 2007 Draper Fisher Jurvetson and NEA‐IndoUS Ventures mGinger n.a. 2
Oct 2007 Ike Lee and Ruderman Capital NetXcell n.a. 1
Jul 2007 Helion Venture Partners and Nexus India Capital Kirusa n.a. 10
Jul 2007 Nexus India Mobile2Win n.a. 5


Market for mobile music and games has been growing and is
expected to boost further
Growth in Demand for Mobile Music and Gaming
• There exists a huge demand for mobile music in the market and this segment is expected to
grow strongly High revenues are
 By 2009, over 75% of total music sales expected to be mobile music expected from M‐
music and gaming
Mobile Music Market
INR bn
60 +124% 45
40
20 9
0
2008 2010
• Demand for mobile games is also strong as consumers are moving beyond simple Java based
Demand for mobile games is also strong as consumers are moving beyond simple Java based
games to more content rich 3D games
Mobile Gaming Market
INR bn
20 18
+162%

10
1
0
2008 2011


Strategic tie‐ups have been seen between mobile manufactures/
operators and MVAS players towards generating high revenues
Partnerships between Mobile Manufactures/Operators & MVAS Players
• Mobile operators have partnered with players in the VAS industry for the development of
customized application platforms so as to access a wide user base Strategic alliances
towards raking in
towards raking in
• Strategic partnerships have been made, under a revenue sharing model, through which large profits with
applications provided by VAS players can be accessed easily on specific handsets minimal costs

Mobile manufacturer/operator MVAS Player Objective
Indiagames and Download ringtones and games using
Nokia
Mauj Nokia’s N series mobile handsets
Making Indiagames and Mauj the first
Indiagames and
Samsung choice of download for ringtones,
Mauj j
wallpapers and Java‐based games
allpapers and Ja a based games
Developing a Tamil voice portal with
Airtel IMI Mobile
ringtones, greetings etc.
•Idea,
Provide background music services
Provide background music services
•Reliance Communications
R li C i ti Cellebrum
C ll b
through IVRS
•Spice
Provide platform for online games on
BSNL Indiagames
demand


Players in this industry are consolidating their position in the
market through inorganic growth
Growth via Acquisitions
• Players in the industry have been expanding their product portfolio by acquiring companies and Heightened
tapping in to their expertise in order to expand market access competition has led
to acquisitions as a
cost effective
choice of expansion
Date Acquirer Target Deal Size Implications
• Increase revenues by USD 10 mn
Increase revenues by USD 10 mn
• Expand market presence by powering the mobile and online digital
marketing initiatives of major brands, publishers and retailers across
Nov 2008 IMI Mobile Dx3 n.a.
Europe
• Tap into Dx3’s associations with major label companies with access to
a large music library (~2 mn tracks)
g y
• Develop new speech recognition language models by using Telisma’s
May 2008 Onmobile Telisma S.A. INR 692 mn
expertise
• Tapping into Vox Mobili’s data products and VAS to telecom operators
in Europe and US
• Access services like phone backup solutions, which allows users to
Sep 2007 OnMobile Vox Mobili INR 1435.1 mn
save mobile content in operators network server
• Bring easy downloading of photos and videos to the domestic market
through existing technology platforms
One97
Nov 2006
Nov 2006 Positive Comsol
Positive Comsol n.a.
na • Expand into voice‐based VAS and enterprise solutions segment
Expand into voice‐based VAS and enterprise solutions segment
Communications


Enterprise VAS has been growing with corporates recognizing
the potential available via these services
Strong Demand from Corporate for Enterprise VAS
• Corporations across the board have been capitalizing on the services offered via enterprise VAS
 In May 2008, Deccan launched M‐Fly, a mobile based ticketing and information system through which Large scale usage
travelers can book, pay and generate an e‐ticket using their mobile handsets
t l b k d t ti k t i th i bil h d t due to high mobile
 M‐advertising has seen a growing trend with many companies opting for this cost effective route for penetration
advertising

Enterprise
Mobile
Mobile
Enterprise Service
operators
Providers

• Corporations • Companies • Support
interested in that are content
Description equipped to
reaching out delivery to
to consumers send bulk the customers
messages to
on mobile the targeted
platform end user
using various
Revenue End user does
Split Bears the costs software
30% 70%
not pay

The end user does not incur any costs for the information received
Th d d ti t f th i f ti i d


• Introduction
• Market Overview
• Trends
• Future Outlook
• Competition
Key Developments


Introduction of 3G technology and the growth in demand for M
commerce will boost the market

Introduction of 3G Top  Applications in 2008
Change in revenue model
Technology
Music  and Games
M i dG
Contests/voting Services
Information services ( alerts etc)
• Auction for 3G • Operators share
spectrum is expected
spectrum is expected IVR Services expected to decline
expected to decline
to take place in FY MMS to 30%
2009‐10 • Other players across
• Will boost mobile the value chain
broadband Top  Applications in 2010 accounting for
penetration as it will almost 70%, as
allow for high speed Music and Games compared to 40%
data transfer UGC and  Social Networking currently
IVR services
M commerce
19% of subscribers (approx. 49.6 Location Based Services MVAS is expected to account for
mn) using high‐end phones can be 16% of operator’s revenues by
targeted 2010


Applications like IVR, M‐commerce, Location based services..

Service Applications and Trends Users Current Status Future Outlook
Across consumers
• Music download and streaming with
Mobile Music from urban to
growth in 3G
rural areas
rural areas
User Generated • Create, download and share mobile
Content & themes, wallpapers and videos Youth
Social Network
Communities
• Payment of bills
• Online/offline shopping Credit/debit card
M Commerce
• Redeeming gift and discount vouchers owners and NRI’s
• Transfer of remittances
Huge demand
• IVR – an automated telephone system
IVR expected from
will drive the regional language content
rural market
• B2B: Resource tracking
• C2B: Searching for a business/ restaurant Youth, logistic
Youth logistic
Location Based
companies and
Services • B2C: Proximity based notifications urban consumers
• C2C: Tracking individuals

Market presence
M k t
Very High High Medium Low


.. Mobile E‐mail and Instant Messaging expected to witness
growth in future
Service Applications and Trends Users Current Status Future Outlook
• Track stocks
Stock Investors and
• Financial news and reports
Performance brokerage firms
g
• Changing trading limits
• E‐mailing among corporates as well as Corporations due
SME’s to cost benefits
Mobile E‐Mail
• Immediately reverting to customer and operational
queries
queries efficiencies

• Allows for customization of text Youth,
Enhanced SMS corporations
• Group messaging services
Service primarily logistics
• Inventory management and tracking companies
• Connecting with multiple users using a
Instant uniform platform Youth and large
Messaging (IM) • Communication between or within enterprises
enterprises using VOIP
Ad Ring Backtone: Application through which the user hears an advertisement while calling
Other
Health Sector: Convey information via SMS such as appointments and medicine dosages to patients

Market presence
M k
Very High High Medium Low


• Introduction
• Market Overview
• Trends
• Future Outlook
• Competition
Key Developments


A highly competitive market with players constantly developing
services to capture market share
Overview Market Share
•The market is highly fragmented with a large
number of domestic players
 There are more that 100 companies registered OnMobile
with the Internet and Mobile Association of India
14%
(IMAI) as VAS enterprises
•Many domestic players have also presence in Tanla
7%
the international markets
 Comviva has presence in more than 80 countries
with 60% of revenues from overseas 14% Geodesic
 Tanla Solutions services are available in USA, 65%
Ireland, UK, Spain, South Africa, UAE, Sri Lanka Others
and Singapore
•Foreign players have also entered the
domestic market to capitalize on the profit
incentives
•Major players
 Domestic – Onmobile, Geodesic, Tanla Mobile
 Foreign – Affle, July Systems, Voicegate
g , y y , g


Players have presence across value chain and overlap few
segments
Players Content Provider   Content Aggregator Technology Enabler
ACL Wireless 
Affle  
Air2Web India 
Comviva 
Cell Next 
Geodesic   
Hungama Mobile  
IMI Mobile     
IndiaGames  
July Systems 
Jump    
mCheck 
Mauj   
Mobile‐2‐win   
One 97   
OnMobile  
Paymate 
Phoneytunes   
SMS Gupshup 
Tanla Mobile  
VoiceGate 


Domestic Players (1/4)
Players Overview Outlook
ACL Wireless • Established in 2000, Headquartered in Noida
• Specializing in the development of consumer
• Services available in 20 countries centric mobile community applications
p
• Investors: MIH Group & Inter‐Asia Venture • Also focusing on managed mobility services
Also focusing on managed mobility services
Management
Air2Web India • Established in 2000, Headquartered in Chennai • Targeting various sectors towards developing
• Services in India, USA, UK, France their brands through mobile marketing
• Investors: The Carlyle Group, Vantage Point • Providing customer solutions enhancing
Venture Partners, Jupiter Ventures business relationships
b i l i hi
Comviva • Established in 1999, Headquartered in New Delhi • Focus on enabling end‐to‐end service and
• Formerly know as Bharti Telesoft customer lifecycle management
• Services offered in over 80 countries • Focus on creating platforms enabling mobile
• Investors: Bharti Enterprises, Sequoia Capital, users to interact and access infotainment
users to interact and access infotainment
Cisco Systems • 60% revenue generated overseas
Cell Next • Developed a WAP site allowing access to
• Established in 2000‐01, Headquartered in New wallpapers, polytones, truetones, themes and
Delhi games
• Services offered to the Indian market • Focus on mobile campaigning and
entertainment platforms

Note: The list is not exhaustive


Geodesic • Established in 1999, Headquartered Mumbai
• Services offered in US, UK, Sweden, Mauritius, • Focussing on VoIP applications
Germany and Hong Kong
• Expanding into mobile social networking
Expanding into mobile social networking
• Financials (07‐08): INR 2693 mn, profit INR 1104
mn
Hungama • Established in 2001, Headquartered in Mumbai • Focussing on providing mobile entertainment
Mobile while diversifying into services in relation to
• Services offered in over 30 countries airlines, hotels etc.
airlines hotels etc
• Powers ~ 70% of all bollywood mobile content in • Enabling viewing of bollywood films on mobile
India phones
IMI Mobile   • Established in 1988, Headquartered in Mumbai • Leading provider of carrier‐grade messaging
• Services offered across 40 countries
Services offered across 40 countries platforms and gateways,content management
platforms and gateways,content management
• Investors: Spark Ventures Plc and FirstMark Capital systems and voice platforms
IndiaGames •Established in 2000, Headquartered in Mumbai • Developing games compatible will most
•Services available in over  75 countries technology platforms for wide access
•Investors: UTV Adobe Inc and Cisco Systems Inc
Investors: UTV, Adobe Inc., and Cisco Systems Inc. • Focus on flash based games
Focus on flash based games
Jump   • Partnering with content owners, publishers,
• Established in 2001, Headquartered in Mumbai mobile operators, handset manufacturers and
• Services available in over  40 countries technology providers in order to create
cutting‐edge games



mCheck • Forming associations with operators, banks
• Established in 2005, Headquartered in Bangalore and retailers so that customers can pay bills,
• Services available in India and Sri Lanka shop online etc.
• Investors: Draper Fisher Jurvetson • Establish services such as merchant
transactions and P2P payments
Mauj • Established in 2003, Headquartered in Bangalore • Focussing on developing their mobile
marketing and advertising business
• Services available via 25 operators worldwide
• Developing applications such as video ring
Developing applications such as video ring
• Investors: Sequoia capital tones and location based services
Mobile‐2‐win • Established in 2003, Headquartered in Mumbai
• Partnered with the Altruist Group in order to
• Services focussed on the Indian market
offer a varied portfolio of products and
• Investors: Norwest Venture Partners, Nexus India
Investors: Norwest Venture Partners, Nexus India services including voice, SMS, WAP, and
services including voice SMS WAP and
Capital Advisors, Softbank China Venture Capital, location based
SVB India Capital Partners Fund
One 97 • Established in 2000, Headquartered in Noida
• Services focussed on the Indian market • Strategic partnerships towards developing
• Investors: Intel Capital , SAIF Partners , SVB innovative content and information services
Financial Group



OnMobile • Form associations with operators and content
• Established in 2000, Headquartered in Bangalore
providers for customized services
• Services available across 21 countries
• Constantly expanding internationally
• Investors: Argo Global Capital Infosys
Investors: Argo Global Capital , Infosys
• Focus on ringback tone and voice portal which
Technologies Ltd, Deutsche Bank , Goldman Sachs,
accounts for 75% of revenues
Polygon Investment Partners
• Foraying into mobile advertising through Ad‐
• Financials (07‐08): INR 2618 mn, profit INR 337 mn
RBT
Paymate
P t • E t bli h d i 2006 H d
Established in 2006, Headquartered in Mumbai
t di M b i •PPartnerships with banks to enhance payment
hi i hb k h
• Services available in India, USA, Sri Lanka, Nepal services portfolio
• Investors: Sherpalo Ventures, Kleiner Perkins • Key focus areas are P2P payments and
Caufield & Byers, Mayfield Fund remittance
Phoneytunes • Established in 1999 Headquartered in New Delhi
Established in 1999, Headquartered in New Delhi
• Focused on creating applications on the WAP
• Services available in domestic and international platform
market
SMS Gupshup • Continuously aiming at expanding portfolio in
• Established in 2004, Headquartered in Mumbai
applications related to group SMS services
pp g p
• Services available in India and USA
l bl d d

Tanla Mobile • Established in 1999, Headquartered in Hyderabad
• Focuses on mobile commerce, mobile
• Services available in India, USA, Ireland, UK, Spain,
entertainment and mobile marketing and
South Africa, UAE, Sri Lanka, Singapore
advertising
• Financials (07‐08): INR 1290 mn, profit INR 873 mn


Foreign Players
Affle • Established in 2005, Headquartered in UK • Focus on building strong relationships with
operators in the market
• Operates in UK, India, Singapore, Malaysia,USA
• Develop software towards enhancing the
• Investors: Microsoft India
Investors: Microsoft India services offered through SMS 2.0 application
July Systems • Established in 2002, Headquartered in LA • Focus on partnering with media companies in
order to provide technology and tools which
• Services available in India, Germany, US, UK & UAE allows establishments to create customized
• Investors: Motorola Ventures, Charles River content for mobile portals
content for mobile portals
Ventures, NeoCarta Ventures, Sequoia Capital, • Recently partnered with CNNIBN to provide
Jumpstartup, Acer Technology Ventures, Silicon mobile content on India’s 2009 General
Valley Bancshares Elections
VoiceGate • Focusing on monitoring solutions and voice
• Established in 1989, Headquartered in Canada
bl h d d d d processing platforms
l f
• Services available in India, Canada and USA • Plans to expand portfolio by entering content
aggregation and content development



• Introduction
• Market Overview
• Trends
• Future Outlook
• Competition
Key Developments


Key Developments

Date Development
31‐Mar‐08 Tanla Mobile has set up a mobile content joint venture with Zed to focus on the development of mobile
products and services for the growing mobile. Zed is expected to bring in their experience and marketing
reach, while Tanla will provide the technology and platform.
h hil T l ill id th t h l d l tf
24‐Feb‐09 IMI Mobile acquired Music2you from Nokia and will now provide full‐track music download and
subscription services to telecom operators and media companies across the world including Vodafone in
India, AOL in Germany and Akado in Russia
28‐Jan‐09
28 Jan 09 Spice Mobiles launched a technologically advanced VAS enabled mobile phone under the brand Spice S‐
Spice Mobiles launched a technologically advanced VAS enabled mobile phone under the brand Spice S
940. The handset can support social networking applications, M‐learning and “email2SMS” services.
3‐Sep‐08 Indiatimes partnered with StratosHear Technologies and launched a website called adringles.com
through which customers can earn by making certain advertisements their caller ring back tones.
Advertisements are available in English, Hindi and other languages based on customer preferences.
12‐Feb‐08 NetXcell, a telecom application services provider, tied up with SinglePoint, a US‐based mobile aggregator
and media interactivity expert, to deliver value added services to mobile operators. This gives NetXcell
the opportunity to access the US VAS market.
04‐Jul‐07 Nokia partnered with Malayalam Manorama to develop India’s first vernacular news portal on mobile
phones. This allowed individuals in the State of Kerela to access national and global news using their
h h ll d d d l h f l l d l b l h
GPRS enabled Nokia handsets.


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Mobile Value Added Services in India Growing to INR 159 Billion by 2011

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Mobile Value Added Services in India Growing to INR 159 Billion by 2011