VAS INDUSTRY OVERVIEW

• According to a joint report by Wipro Technologies and the Internet and Mobile Association of India, the Indian VAS market, valued at $4.9 billion in 2012, is expected to reach $9.5 billion by 2015.

• Currently, VAS accounts for 12-13 per cent of overall telecom revenues and the ecosystem for these services is maturing

Portfolio offered by VAS Players

• Musici. Music searchii. Karaokeiii. Devotional songs

• Infotainmenti. Live newsii. Score updatesiii. Location based servicesiv. Games

• IVRi. Voice Short Codes

• Callingi. Missed call alertsii. Call forwardingiii. Click to call

• Cloudi. Phone backupii. Phone bookiii. Social Calendar

• Messagingi. USSD servicesii. WAPiii. Push Notificationiv. SMS alerts/notifications

TOP 15 WAP Competitors – Sr. No. Competitors Strength

Revenue

(€ Million)

1 IndiaGames Cricket IPL rights, EA Catalogue, Disney majority owner 13

2 Nazara Provider of Games, Bollywood & Bikini content across PAN India 9

3 SaReGaMa Indian Music Leader 8

4 Hungama PAN India Presence with Music & Bollywood rights with deep Vodafone support 11

6 One97 Emerging D2C partner. Amongst top 5 of partners of Vodafone 9

7 ShotFormats Comics monopoly. Also provides Bollywood content. 7

8 IMI Mobile Offer WAP services as managed services for various Telco's and also a Infrastructure and solutions provider. 7

9 VuClip Videos and managed services provider for all Vodafone video alerts. 6.5

10 Mauj PAN India Presence. Also launched D2C services for Vodafone. Also offers FHM service (Similar to Re. 1 Store) to Vodafone. 5

11 Tech Zone Offer Regional music and Movies services in South Indian market. Also a Infrastructure and solutions provider. 5.5

12 Buongiorno / Lumata All Genre content selling under Tashan Brand 3

13 Handygo Provider of Games, Bollywood & Ringtone content across PAN India 2.5

14 India Times Infotainment 2.215 MobMe Strong Airtel Support 216 Apalya Video streaming services on web and 3G streaming devices 1.2

Product Development - Operator Vas

Operator demands

service/productOperator KAM->

VAS KAM

Prepare Plan & Duration

Revenue sharing based on the

time period and demand

Meeting with Delivery Manager

Technical team configures

product

Product is then stored in CMS of

Operator

Customer Downloads the

product

Product Development – Enterprise VAS(Field Force Tracking IMI Mobile)

Product Developed by Technical Team

Delivery Manager interacts with sales team

Sales Team (KAM) interacts with potential clients

One time license fee + per download cost

Postpaid Scenario

Content Download

Pre-Rated IPDR

Non Pre-Rated IPDR

Mediation

Billing System

Error Bucket

Mobile

Flows chart of VAS charging

BTS BSC MSC HLR

IVR

SMSC

Query Database

Request identified

Content found ?

Request DeniedNo

Content delivered

IPDR

Prepaid Scenario

Content Download

Pre-Rated IPDR

Non Pre-Rated IPDR

Offline Charging system

IN

Failure Bucket

Mobile

Recent trends in MVAS• M-Health - e.g. locating hospitals,

fixing appointments, registration, medical advice, facilitating treatment and blood donation process

• M-Governance - e.g. Kerala, Gujarat, Bihar, Goa & Andhra Pradesh have initiated m-governance practices primarily through SMS-based platform

• M-Education – e.g. Aircel and MTS partnering with NGOs, Reliance communication delivering interactive, real time courses across 105 cities, Airtel imparts education through IVR which includes English speaking courses at basic level

• M-Commerce - M- Microfinance, M Retailing and Mobile wallet services. Govt. initiatives include increase mobile payment limit to INR 50,000 by RBI, Creation of Interbank Mobile Payment Service (IMPS), by NPCI along with 6 Nationalized banks and RBI granting Semi-Closed Wallet licenses to telcos.

• M-Agriculture - Commodity prices, local info, weather updates, multiple language support etc. e.g Reliance’s Grameen VAS and Airtel’s Behtar Zindagi.

• M-Infotainment – e.g. Sports, Travel, News Content, Ringtones, Music & Videos

Recent trends in MVAS

• Location based services - e.g. Real time fleet and asset management, Friend finder, Location-based advertisement, Location-based advertisement and Location-based search.

• Enterprise services using integrated SoCloMo platform e.g. IMImobile’s Openhouse.

• Regional Languages - IVR, live FM radio , regional music

VAS for Enterprises

• Employee engagement network• Mobile Messaging • Mobile Payments & Commerce• Wireless CRM & ERP• Location & Tracking• Fleet Management• M2M & Telematics• Branchless banking solutions• VAS Retailing• Healthcare management

TOP 5 VAS PLAYERS

• Onmobile• IMIMobile• Times internet• One97• Hungama

Future of VAS • Expected to grow at CAGR of 22.13% from 2013-18• Growth Factors

– Increase use of smartphones and tablets– Increase in Data consumption and demand for high speed data

• Entertainment- Key opportunities in localised vernacular content, on-demand music and video content and live TV shows and events.

• Education -Interactive English Language Learning Services, Competitive Examination Preparation Solutions, Tutor-on-call and Vocational training.

• Health- Improve healthcare access and affordability in India, through Remote Diagnostics, Chronic Disease Management and Maternal Care

• Commerce- Extending financial services to 40 per cent of India's unbanked population.(Mobile Wallet)