VAS as catalyst for 3G
- India’s ARPU (Average Revenue Per User) is on a decline and is one of the lowest in the world at $10.
- In a competitive market, VAS (Value Added Service) would be the key differentiator for an operator, which would realize profits and improve margins. India’s VAS is likely to be catalyzed by 3G. VAS like streaming videos, online games, high speed internet connection are possible with 3G services. Currently VAS is estimated to be $750mn of the total market worth $6bn. By 2009, it is estimated to contribute 30% to $10bn telecom service industry.
- The panelists believed that 3G would increase personal mobile Internet and mobile music. They believed that the video streaming market would contribute 51% to the $3.7bn mobile TV market in 2010, which is currently worth $136mn.
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