Current mVAS Scenario
(For Paper Presentation in CAN Info Tech 2014-5th January 2014)
Presented by :
Ms. Reena DongolDeputy Manager, GSM Business, Nepal Telecom.
Email ID: [email protected]
Outlines Background of mVAS Types and ServicesmVAS EcosystemmVAS Benefits Why mVAS in Telecom Market?VAS Licensing Regime in NepalNepal Telecom Case ScenarioDifferences between Current & Emerging VAS National Trend of Global Trend of mVASLimitation /Challenges in mVASThe Way Forward…
Background of mVASTraditional : Enhanced Services that Add Value to the Standard or Core Telco-Services like Voice Calls and Fax Transmission Call Waiting, Call Forwarding, Multi Party
Conferencing, Voice Mail, Email, SMS, MMS etc.
Modern : All kinds of Content and Applications provided on Telco Network apart from Traditional Value Added ServicesInformation BasedCRBT,MCA, Contest, m-Learning, m-
Governance, m-Health , m-Commerce, Social Networking etc.
mVAS Types & ServicesMobile Backup Entertainment (Wall paper, Horoscope,
Jokes, life style, News, games) IVVR Messaging (push-pull service ), Mobile Commerce(Mobile Banking, Utility bill payment
via mobile)Advanced Network Services( Call Block, Missed call
Alert, Pay for me, Balance Transfer) Mobile CRBT(Ringtone, Songs download) Multimedia(video download, Mobile TV, Songs),
Conferencing and CollaborationPublic Safety(different kinds of information provided
by VAS operators)Video Conference(Video Call )Voice SMS( Voice Chat)M- Agriculture, M- Governance, M-Health, M-
Marketing etc.
mVAS Ecosystem
-In reference to TRAI doc
mVAS Benefits Telecom Service Provider
Key Role in delivering information, better situational awareness in disasters, infrastructure planning and national development
Company /its Product BrandingCustomer RetentionGrowth in Revenue without much effort
CustomerComfortable LifestyleUpdated to Latest HappeningsBest Value for PriceEasy Access, no hassle
mVAS BenefitsContent Provider/Application Providers/
Mobile AdvertiserAggregatorTechnology EnablerHandset Manufacturer
Source of Profitable BusinessOpportunity for National ContributionBest platform for Market PresenceGrowing Trend
Why mVAS in Telecom Market?Not a main businessHuge Competition in Telecom BusinessGrowing Customers demand Biggest Challenges to Telecom Operator
Customer ChurnRevenue Loss
mVAS best fit for current survival Customer retention Attraction to customerHelps in Revenue growthNo extra effort to Telecom OperatorBearer Channel Only
mVAS Licensing RegimeTelecom OperatorNeed Telecom Authority Regulatory Body for
VAS Licensing RegimeTelecom Authority/Regulatory Body can
Helps in National Social-Economy DevelopmentControl the mVAS MarketReduce Institutional ConflictQuick in Adaptation of Innovative Application
ServicesBring about Social Security, Timely AwarenessGain Respect from the Citizens
Nepal Telecom Case Scenario –mVAS Bearer Channels
SMS based push-pull VAS [ Mostly Used ]USSD [ Recently Started]IVRs [ Can be most useful in case of
Nepal, only open for few Service Providers ]
WAP Based [Can be useful as there are 6.2 M GPRS users in Nepal ]
CRBT [Mostly Used]
NT Case Scenario Selection of mVAS Service Providers
Selection by Telco Operator under the guidance of its board decisions
Method of mVAS Service Provider SelectionTendering (dated BS 2063 Shrawan- AD July 2007)Beauty Contest (from BS 2066 Chaitra- AD March 2010)
Innovative VAS Access, Awareness, Affordable Easy and Comfortable Lifestyle Addresses Necessity of Subscribers Retention of Subscribers Reduce Time-To-Market Attractive Business Model Technical Viability
No charges on short codes
Service Approval from NT ManagementProvisional Period (mostly 6 months)Contract Period (mostly 1 year)Renewal (mostly in yearly basis)Tariff and Short Codes approved from
NTAConnectivity charges (set defined
charges from July 14th 2013)Evaluation of Service prior to renewal of
VAS License
Nepal Telecom Case Scenario Selection of mVAS Service Providers- contd.
Nepal Telecom Case Scenario- Year wise GSM Revenue
2009 (65/66)
2010 (66/67)
2011 (67/68)
0
0.4
0.8
1.2
% of VAS Revenue (in terms of GSM revenue)
% of VAS Revenue (in terms of GSM revenue)
Nepal Telecom Case Scenario – mVAS Revenue
20
456
29Revenue Shar-ing SMS
Rental Based
IVR
CRBT
4M mVAS users including CRBT
Nepal Telecom Case Scenario – Existing mVAS mostly entertainment & SMS based
SMS/ IVR Based Information ServicesBankingQuotes Love/ Friendship/ Hates etcHoroscopeSportsHospitalsDigital Visiting CardGender Violence ReportingSoftware SMS integration service / APIQuiz / public opinionVoting/ ContestMobile Finance
Premium VAS (CRBT, News Alert, Voice Chat, MCA)
Emerging mVAS services-New age application with enhanced content and higher data usage
SMS/ IVR/ USSD/ WAP/CRBT BasedGamingTeleVotingChatSocial NetworkingLocal Language Voice ResponsesmHealthmGovernancemAgriculturemLearningmCommerce (enabler for mobile payment)Wall PaperTrue Tone and many more…
Nepal Telecom mVAS services-In Near Future (10M GSM Project)
20% 2G, 40% 3GTarget for 5% Revenue in 2014High speed data, Attractive data packagesContracted with few more VAS providers with
innovative productsUSSD service in the process of operationAdvancement in the handset, in the process
of bundling with Android handset Focus in marketing and awareness campaign
program of mVAS services to customers
Differences Between Current & Emerging mVAS
Global Trend of mVAS
-In reference to TRAI doc
mVAS Limitations/ Challenges in NepalLack of Strong Regulatory Policies
mVAS Licensing/ RenewalTariffCharging for ResourcesContent Privacy Copyright Royalty Revenue Sharing Financial TransactionPerformance SecurityInsurance Approval of Emerging Application Services
Limitations/ Challenges of mVAS in NepalHandset that does not support Local
languageBandwidth Limitation Traditional mVAS Existing TDM Telco Infrastructure Lack of Effective Marketing Lack of Content in Regional LevelCostly Service due to low volumeLack of proper exposure Spam messages etc.
The Way Forward…Urgent Need for a CLEAR Policies and Regulatory
FrameworkIdentify Role Model Players in mVAS EcosystemEducate End UsersAccess to Mass Market/ High Availability/ Affordable
ServicesEncourage Growth of Local Application & ContentsMonitor Growth in mVAS Revenue Survey/ Expose to Key Areas for Future DevelopmentAdapt to Emerging mVASPeriodic Review on mVASReduce Time-To-Market
Thank you…