Value-Added Services on the Menu in Delhi

Jim Machi : Industry Insight
Jim Machi

Value-Added Services on the Menu in Delhi

VAS Asia on July 9th was an exhilarating experience. The energy was amazing all around. Everyone expects mobile VAS (Value-Added Services) to grow in India. Is this a case of since everyone here is into VAS since the show is about VAS, that everyone comes together at this big VAS love-in type of event to collectively breathe their own VAS exhaust fumes? Could be. I mean I've seen it before.  But I don't think so given the Indian market has always been supporting VAS, from CRBT to mobile radio to horoscope readings for a long time. Adding video to the mix will spice things up even more and spur some VAS innovation for sure.
 
In the keynote, Arvind Rao, CEO of OnMobile, talked about 4 revolutions in history. The agricultural revolution, industrial revolution, internet revolution and VAS revolution. Yes, maybe a bit over the top, but he made his point. Point being that VAS is "discretionary" today, but will be a "way of life" and a "must have" in the future. You'll just make it part of your everyday life, like we have now made mobile phones part of our life. I remember just 15 years ago getting my first mobile phone and it was not clearly an everyday part of my life at that time like it is now. So why won't VAS just be a way of life in a few years!
 
I expected coming into the show that there would be "complaining" about the vast amounts of money ($14.5B) spent on the recent Indian 3G auction, thus hindering growth since the mobile carriers are tapped out. I actually heard none of that, at least to me. It was more of a matter of fact type of discussion - it is what it is. Some people though predicted that there would be consolidation fallout, which makes sense. As all markets mature, typically there are under 5 real players. The Indian market now has 16 mobile carriers according to the show organizers in a question asked to the audience.
 
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