With the Indian Premier League (IPL) having kick-started on Saturday, mobile value added services (VAS) is expected to grow at 50-75%, generating revenues close to Rs 30-40 crore this year for mobile VAS operators. The first season of the sporting event raked in Rs 20-30 crore for mobile VAS operators last year. Teams like Kolkata Knight Riders, Mumbai Indians and Deccan Chargers have tied up with companies like Nokia, Idea Cellular and Nazara Technologies respectively.
?With the phenomenal growth in mobile subscriber base, the demand for VAS is observing an uphill trend. Normally, it is a 70:30 revenue sharing between the companies and the cricket teams. This year there is a huge potential for mobile VAS companies from IPL,? said Nitish Mittersain, CEO, Nazara Technologies. The company is developing games for Deccan Chargers and Delhi Daredevils. The Indian telecom market clocks around 9-10 million subscribers per month, gives a huge opportunity for the growth of mobile VAS. IPL teams tying up with the companies is a win-win situation for both as the revenue is shared between teams, operators and also the content providers.
In a country like India where cricket has become a religion, teams and the providers are coming up with innovative offerings to reap the IPL benefits. Virgin Mobile has come up with a gaming portal which can be accessed at http://www.indianhatkeleague.com. Idea Cellular’s partnership with Mumbai Indians will allow subscribers to call and SMS their favorite cricketers and give them tips and suggestions. Pradeep Shrivastava, CMO, Idea Cellular, said, ?We have entered a three year deal with the team and set up a large team for screening calls. We have not restricted this service to just Idea subscribers but to all mobile users.?
SMS Gupshup has tied up with Delhi Daredevils, Rajasthan Royals and Deccan Chargers and created a platform through which live updates can be sent to cricket fans. Due to security concerns, the IPL shifting to South Africa and also the slowdown would not impact the revenues from VAS, says industry experts. ?The tariffs have reduced compared to same time last year. Since 90% people watching cricket on their television sets, the venue shift is not likely to impact the
VAS revenue,? mentioned Debasis Chatterji, CEO, Netxcell. Vodafone Essar, an official partner to IPL 2009, has partnered with South African mobile
services provider Vodacom. This partnership will offer its postpaid customers with 85% discount on calls, SMS and GPRS services while roaming in South Africa.