Content developers are gearing up to cash on the 3G wave which is expected to revolutionise value added services (VAS) industry, currently pegged at Rs 1,200 crore and is expected to grow to Rs 3,600 crore by 2015. Content will be the key differentiator in the telecom space, which will see new alliances being forged between handsets vendors, operators and application developers to attract new customers. Telecom players are eyeing to increase VAS share in their revenue pie to almost 25%.
While Reliance Communications has set up a 3G innovation lab for developing content exclusively for its subscribers, the CDMA new entrant Sistema Shyam Teleservices (SSTL) is promoting data services in a big way. ?3G-led innovation is a critical lever in our overall strategy. This lab will drive all 3G innovations for mobile as well as other platforms. The app store model is one way to popularise these services,? said Prashant Gokarn, business head, 3G.
Mobile operators will leverage proprietary content to create customer stickiness. ?With better speed on mobile, consumption of data like videos and games will increase. Just as we have content generated specifically for computers and television, 3G will fuel the need to have original content developed for mobile phones,? said Srinivas Gopal, CEO, cooldose.com.
Internet browsing and music-related applications would be the service drivers in line with international precedents. Web browsing is expected to be the most used service among mobile broadband subscribers in India. Music services are likely to see the second highest uptake, confirming Indian consumers? inclination towards music related services through mobile. However, the uptake of these services would initially be low. ?About 3-5% of subscribers will be on 3G in the first six months of its launch. Operators may either price these services attractively or skim the market for their targeted offerings. Actual user experience still has to be seen,? said Kedar Sohoni, president, Informate Mobile Intelligence.
Vaneet Singla, senior manager, product and marketing, Spice Labs, said, ?Across Indian operator channels, we have seen a strong pickup for stocks, Bollywood and news apps. These three apps combined together would comprise about 60% of our Indian downloads. Indian app story is just unfolding.?
High speed access will enable content developers and aggregators to generate additional revenue by offering diverse interactive content such as videos and interactive gaming, amongst others. According to a report by research firm PwC, the increased data usage on 3G network will lead to incremental 3G data service revenue of over Rs 10,000 crore in 2015. ?Total revenue from 3G subscribers is expected to Rs 26,400 crore by 2015, growing at a CAGR of 150% of which Rs 10,200 crore be from data services,? the report highlighted.