MobileValueAddedServices Mobile Value Added Services India

April2009

ExecutiveSummary
Market
EstimatedworthINR62bnin2008;expectedtogrowtoINR159bnin2011 Valueaddedservices(VAS)accountsfor10%ofoperatorsrevenue Servicesofferedcanbecategorizedintoinformation,entertainmentandMcommerce

Drivers:
DemandSide SupplySide
DecliningARPUs Risingmobileteledensity Introductionof3Gbased applications

Challenges: Challenges:
Biasedrevenuesharingmodel Lackofcopyrightprotectionand authenticationsstandards Dominanceofprepaidcustomers Lackofconsumerawareness Lackofpurchaseoffeaturerichhandsets

Drivers& Challenges

Increasingconsumer demandforVAS Mediumforadvertising Demand for regional Demandforregional content Growingruralmarket

Trends

IncreasedfocusofPE/VCfirms Growthindemandformobilemusicandgaming Growth in demand for mobile music and gaming Partnershipsbetweenmobilemanufactures/operators&MVASplayers Growthviaacquisitions StrongdemandfromcorporatesforenterpriseVAS Ahighlyfragmentedmarketwithmanysmallandmediumsizedcompanies h hl f d k h ll d d d
DomesticPlayers ForeignPlayers Affle JulySystems VoiceGate

Competition

OnMobile TanlaMobile G d i Geodesic

Content Provider/Creator Geodesic Mauj Affle

Aggregator TanlaMobile HungamaMobile bil IMIMobile

Technology Enabler OnMobile One97 ACLWireless

MOBILEVALUEADDEDSERVICES INDIA.PPT

 Introduction MarketOverview Drivers&Challenges Trends FutureOutlook Competition Key Developments KeyDevelopments

MOBILEVALUEADDEDSERVICES INDIA.PPT

IndianTelecomMarkethasbeengrowingwithrapidincreasein CDMAandGSMmobilesubscribers
Overview
TotalRevenue 2008 USD31bn TotalSubscribers 300.49mn(2008) FixedSubscribers 39.42mn MobileSubscribers 261.07mn Teledensity:26.2%(March2008) Projections: TotalrevenuestoincreasetoUSD54bnby 2012 Teledensityofthecountrytogoupto50% byendoffiscalyear200910 800mnmobileconnectionsby2012 500mnGSMsubscribersbytheendof 2009

MobileSubscribers(2008)
mn

200 150 100 50 0 26

GSM CDMA

193 120 69 21
2006

41 8

45
2007

68

11

2004

2005

2008

WirelessOperatorsMarketShare(Mar09)
18%

Bharati Rcom Vodaphone 17% BSNL TataTele Idea Others

25%

8% 10%
9%

13%

Note:Teledensitymeansnumberoftelephonesinuseforevery100individuals MOBILEVALUEADDEDSERVICES INDIA.PPT

 Introduction MarketOverview Drivers&Challenges Trends FutureOutlook Competition Key Developments KeyDevelopments

MOBILEVALUEADDEDSERVICES INDIA.PPT

MobileValueAddedServicesmarketisgrowingstronglywith demandforentertainmentservicesdominatingthemarket
Overview
MobileVASmarketisworthINR62bnin2008andis forecasttoreachINR159bnin2011 Mobile VAS accounts for 10% of mobile operators MobileVASaccountsfor10%ofmobileoperator s revenues MobileVAScanbecategorisedas
Information Newsalerts,stockprices,air/railticketstatus, bankaccountbalance/transactionalertsetc. E Entertainment S i Songs,ringtones,callerringbacktones i ll i b k (CRBTs),wallpapers,games,jokesetc. MCommerce Mpayment,Mbankingetc.

DataandVoiceBreakup
Data Voice Shareofdatarevenue isincreasing

100% 80% 60% 40% 20% 0%

5%

6%

7%

8%

10%

95%

94%

93%

92%

90%

2004

2005

2006

2007

2008

MarketSegmentation
2004 2005 2006 2007 2008(e) 2009(e) 0% 20% 40% 60% 80% 100% Games Information Services Music Ringtones/ Graphics Video/TV
M Gamesto witnesshighest growth

MVASMarketSize&Growth
INRbn
200 150 100 50 0
SMS VAS Non-SMS VAS

159 +39% 90 43 52% 48% 2007 62 53% 47% 2008 51% 2009(e) 49% 52% 2010(e) 54% 128 46% 48%

2011(e) 6

MOBILEVALUEADDEDSERVICES INDIA.PPT

Revenuesharingmodelisskewedtowardsmobileservice providerswithotherplayersreceivingnominalshares
ContentProvider/ Creators Developoriginal copyrightcontent Createuserdefined content Content Portal/ Aggregator Aggregates information Distributescontent tothemobile operators Mobile operators Supportcontent deliverytothe customers

Description

Examples l

Geodesic Mauj OnMobile

TanlaSolutions HungamaMobile IndiatimesMobile

Bharati Vodafone Rcomm

RevenueSplit

1015%

2025%

6070%

Technologyenablersandsoftwaredevelopersactasabridgebetweenaggregatorsandoperators
Playersoverlapacrossthesesegments

MOBILEVALUEADDEDSERVICES INDIA.PPT

SMSisthemostpopulardeliveryplatforminthemarketdueto itsreach,convenienceofusageandwidescaleacceptability
DeliveryPlatform ShortMessage Service(SMS) Cost(Aprrox) Trends 44%ofVASservicesareviaSMS Caterstoawideaudienceasservices areavailableevenonlowend handsets Stronggrowthexpectedduetomass appealandeaseofusage Availableinvariouslanguages Directed towards consumers using Directedtowardsconsumersusing technologicallyadvancedhandsets Growthin3Gmobilephonesis expectedtoboostdemand Platform where interaction is in the Platformwhereinteractionisinthe formofacontinuoussessionas opposedtoanSMS Inanascentstagewithstrongusage expectedinthefuture L Largelyusedbytheurbanyouthwith l d b th b th ith scopeforusageinotherfields Applications CRBT,wallpapers,jokes,infotainmentsearch News,astrology,MCommerce,alerts,travelalertdetails Participatingincontests,voting,information,advertising, enterpriseIM,groupmessaging enterprise IM group messaging Religiouschants,music,voiceSMS,Astrology Mobilebanking,ticketing IVRbasedcontactcenters,selfhelpcenters,voiceportals Video Clips games themes radio blogging chatting SNC/ VideoClips,games,themes,radio,blogging,chatting,SNC/ UGC,internetsearch,advertising Mobilebanking,ticketing,travelbookings Mobileemail,mobilecalendar,accesstointranetandcore businessapplications,mobileVPN Content download cricket updates jokes news alerts Contentdownload,cricketupdates,jokes,newsalerts Mbanking Mmarketing INR250/unit

InteractiveVoice Response(IVR)

INR0.65/min INR99/month INR 99/month forusage (Download chargesare additional)

WAPPortals

Unstructured Supplementary ServicesData (USSD) Multimedia M lti di MessageService (MMS)

INR3050/ month

INR35/unit

S di Sendingpicturemessages,socialnetworking i t i l t ki Insuranceandbankingcompaniesforinstantphoto verification

HighrevenuescanbegeneratedfromIVRasservicesareexpensiveandtimeconsuming Hi h b t df IVR i i d ti i

MOBILEVALUEADDEDSERVICES INDIA.PPT

 Introduction MarketOverview Drivers&Challenges Trends FutureOutlook Competition Key Developments KeyDevelopments

MOBILEVALUEADDEDSERVICES INDIA.PPT

Drivers
IncreasingConsumer DemandforVAS GrowingMediumfor Advertising IncreaseinDemand forRegionalContent

GrowingRuralMarket

DemandSide

Drivers

SupplySide pp y
RisingMobileTele Density Introductionof3G BasedApplications

DecliningARPU

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Consumersarewillingtouseandpayforvalueaddedservices providedbyoperators
IncreasingConsumerDemandforVAS
Consumersareincreasinglyusingtheirmobilephonesformusic,entertainment,gamesand information MobileVASisgainingacceptabilityamongconsumersastheyarewillingtopayforthese services Propensitytouseandpayformobileservices
RingTones MMS MusicDownload IM Games E mail Email LBS Information Video MusicStreaming Logos Banking Adult
1.0 2.0 Leastlikelytopayforservices 3.0 5.3 5.2 5.1 5.0 5.0 5.0 50 4.9 4.9 4.9 4.8 4.7 4.4 3.8 4.0 5.0 6.0 Mostlikelytopayforservice

Impact

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Costeffectivemediumforadvertising,increaseindemandfor regionalcontent..
GrowingMediumforAdvertising
Companiesarelookingatmobileadvertisingasaviableoptiontomarketbrandsbyleveraging thehugepenetrationofmobilephones
IndianPremiereLeague(IPL)teams,namelyRajasthanRoyalsandDeccanChargers,tiedupwiththe companySMSGupShuptointroducevariousapplicationsfortheirfanslikepoll,predictmanofthematch andtalkingtothecricketers YashRajFilmsDhoom wasthefirstmovietoadvertisethroughmobilephones INRbn INR bn
6 4 2 0 0.4

Impact

MobileAdvertisingMarket g
+132%
5.0

2008

2011

IncreaseinDemandforRegionalContent
RegionalVASmarketvaluedatINR8.5bnin2008 Demand for regional/local content is expected to grow in future Players are capitalizing this Demandforregional/localcontentisexpectedtogrowinfuture.Playersarecapitalizingthis opportunitybydevelopingvariousservices
InJuly2007,NokiaenteredintoagreementwithMalayalaManoramaforamobilebasedvernacularnews portalforsubscribersbasedinKerala InJune2006,AirtelinassociationwithIMImobileintroducedaTamilvoiceportalallowingringtoneandsong downloads,jokesandrecipestobecirculatedintheregionallanguage d l d j k d i t b i l t d i th i ll

Impact

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..andgrowthinsubscribersinruralsectorhasspurredthe demandforvalueaddedservices
GrowingRuralMarket
By2012,60%ofmobileusersareexpectedtobefromruralIndia Availabilityofcontentinthevernacularlanguagehasledtoagrowingruralmarketwithstrong prospectsfor
Mbanking
StateBankofIndiapartneredwithAirteltoprovidebankingservicesintheruralareasofUttaranchal,Andhra PradeshandMizoram

Impact

CustomizedserviceslikeCroppricealerts,Microfinanceschemeinformation,Installmentduealerts
AirtelpartneredwiththeIndianFarmers'FertiliserCooperativeLimited(IFFCO),inJanuary2008,tosetupIFFCO KisanSancharLimitedinRajasthan.Underthisinitiative,informationregardingagriculturalpracticesandweather forecastswasavailabletofarmers QUALCOMM,MSSRF,TataTeleservicesandAstuteSystemTechnologycollaborated,inAugust2007,tocreatethe FisherFriendapplication,launchedinSouthIndia,whichfacilitatefishermenwithdataonopportunities,risksand marketinformation k ti f ti

RuralMobileSubscribers
mn
600 400 200 0 92

+48%

441

2008

2012

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DecliningARPUshasshiftedtheoperatorsfocustowardsVASas analternaterevenuesource
DecliningARPU
MobiletariffsinIndiaisoneofthelowestglobally Inordertogeneratelargerevenuesprovidersaretargetingcustomersbyreducingtariffsand enhancingthescopeoftheservicesprovided
USD
0.3 0.2 02 0.1 0.0 0.23 0.22

Impact

MobileTariffPerUnit
0.19 0.17 0 17 0.16 0 16 0.11 0.09 0.05 0.03 0.02

Belgium

Italy

UK

France

Brazil

Taiwan Malaysia Thailand China

India

FallingARPUhasshiftedtheemphasistowardsVASforrevenuegeneration
INR/Month
400 300 196 200 100 0 Dec-06 316 298 202

AllIndiaARPUs
297 206 275 173

GSM CDMA
261 176 264 159 239 139 221 122 220 111

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08 14

MOBILEVALUEADDEDSERVICES INDIA.PPT

Increaseinmobileteledensitycoupledwithemergenceof3G servicesexpectedtosupportVASmarket
RisingMobileTeledensity
Cellularmarketpenetrationhasbeenrisingsteadilyandisexpectedtoaccelerateinthefuture withgrowthinaffordablehandsets ThisprovidesastrongmarketopportunityforplayersintheMVASindustrytotapintothenew consumersemergingwhilecapitalizingontheexistingcustomers MobileTeleDensity
%
100 50 0 8.2 14.8 19.8 29.7

Impact

+33%
40.0 47.8 54.8 60.7

2005

2006

2007

2008

2009

2010

2011

2012

Introductionof3GBasedApplications
VASprovidershavebeenconstantlydevelopingtheservicesprovidedbythedevelopmentof newtechnologies Introductionof3Gisexpectedtousherinawidespectrumofservicesashighspeedinternet Introduction of 3G is expected to usher in a wide spectrum of services as high speed internet accesswillbeavailableallowingforvariousservicessuchasmobileTV,movieondemand,live streamingofmusic/videos,videoSMS StrongcompetitioninthemarkethasmadeproductdifferentiationamongVASplayers imperativeinordertogeneratesustainedprofits
Playerswillneedtodeveloptechnologiesinordertostrategicallydesignproductsthatmeetchanging consumerpreferences
MOBILEVALUEADDEDSERVICES INDIA.PPT

Impact

15

Challenges

BiasedRevenue SharingModel

FeatureRich Handsetsbeyond theBuyingPower ofUsers

LackofAwareness amongConsumers

Challenges g

LackofCopyright Protectionand Authentications Standards

Dominanceof PrepaidCustomers

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Biasedrevenuesharingmodelandlackofawarenessamongthe consumersaboutVASarethemajorchallenges
BiasedRevenueSharingModel
Revenuesharingarrangementinthemarketisskewedtowardoperators
Operatorsaccountfor6070%shareintheMVASvaluechainwhilecontentprovidersandaggregators accountfortheremaining4030% t f th i i 40 30%

Impact

Profitsmadeareunabletopercolatetoallstakeholdersleadingtoinequitableparticipation acrossthevaluechain Serviceprovidershavehighpricingpowersas

they control data flow by blocking websites thus hampering reach of content players theycontroldataflowbyblockingwebsitesthushamperingreachofcontentplayers browsingapplet,whichcontrolsinformationandthelevelofwebaccessbyusers,iscustomizedsoasto checkdirectcommunicationbetweenusersandcontentproviders largescaleoperatorscapitalizeontheexistingmarketscenariowhichconstitutesofmanysmallplayersin thecontentspacewhoareunabletobargainonprofitsharesduetostiff competition

LackofAwarenessamongConsumers
Usersarelargelyunawareofthevariousvalueaddedservicesthatareprovidedduetolacking initiativefromoperators initiative from operators Lackoftransparencyincostsentailedduringusagehasactedasadeterrentforconsumersfrom usingtheseservices OtherthanpromotionalSMSs,othersmeansmustbeadoptedbyplayerstoeducatethe consumers

Impact

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Largeprepaidsegmentandlackofcopyrightprotectionare actingasbarrierstogrowth
DominanceofPrepaidSegment
Indianmobilemarketisdominatedbytheprepaidsegmentwith60%ofindividualhavinga balanceofunderINR10 SegmentationofCustomers i f bil l f id MobileBalanceforPrepaidCustomers INR>10 INR010 INR<0
10%havenegative balance

Impact

Prepaid Postpaid P t id

40% 12% 88% 50%

INR0 10% Largely,customersinthissectorareunwillingtooptforvalueaddedservicesastheyareunable toaffordtheseservices

LackofCopyrightProtectionandAuthenticationStandards
MVAS l MVASplayersoperatewithoutalicense,whichhasleadtoafragmentedmarketwithmany t ith t li hi h h l d t f t d k t ith smallplayers Currentlythereexistnoauthenticationstandardsforoperatorsandaggregatorsfordownloading content However the Telecom Regulatory Authority of India (TRAI) plans on collecting a fee from those However,theTelecomRegulatoryAuthorityofIndia(TRAI)plansoncollectingafeefromthose companieswhichofferVASservicesbasedonshortSMScodes

Impact

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LargefractionofIndianconsumersarebuyinglowendmobile phoneswhichdonotsupporthighendservices
Featurerichhandsetbeyondthebuyingpowerofusers
Indianconsumersareunwillingtospendlargesumsonmobilephoneswithhightechfeatures Alargecrosssectionofconsumersownhandsetswhichareunabletosupportthehighend servicesprovidedbyplayers UsersinDifferentHandsetPriceBrackets(June2006)

Impact

<2K 6%

2K4K 46%

4K7K

7K10K 10K15K 9% 11%

>20K

22%

5% 3%
15K20K

52%ofconsumerscan availofonlybasicservices suchasmonotones

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 Introduction MarketOverview Drivers&Challenges Trends FutureOutlook Competition Key Developments KeyDevelopments

MOBILEVALUEADDEDSERVICES INDIA.PPT

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KeyTrends

IncreasedFocusofPE/VC Firms

StrongDemandfrom CorporateforEnterpriseVAS

GrowthinDemandfor MobileMusicandGaming

Trends

GrowthviaAcquisitions

Partnershipsbetween MobileManufactures/ Operators&MVASPlayers

MOBILEVALUEADDEDSERVICES INDIA.PPT

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LargescaleinvestmentsfromPE/VCfirmstowardscapitalizing onthegrowthprospectsinthemarket
IncreasedFocusofPE/VCFirms
PrivateequityplayershavebeenbullishonthetelecomsectorinIndiawithdealstotalingUSD 1.4bnin2008 MajorityofplayersinVASmarketaresmallormediumscaleenterprisesrequiringinvestments AgrowingVASmarkethasactedasanimpetusforlargescaleinvestmentsbyPE/VCfirms Date
Mar2009 M 2009 Jan2009 Oct2008 Jun2008 Jan2008 Jan2008 Jan2008 Nov2007 Nov 2007 Nov2007 Oct2007 Jul2007 Jul2007 Norwest IntelCapitalandSiliconValleyBank Helion,CharlesRiverVentures KleinerPerkinsCaufield&BuyersandSherpaloVentures BessemerVenturePartners WardferryIndiaReconnaissanceFund QuantumFund QualcommVentures Qualcomm Ventures DraperFisherJurvetsonandNEAIndoUSVentures IkeLeeandRudermanCapital HelionVenturePartnersandNexusIndiaCapital NexusIndia Kirusa mGinger NetXcell Kirusa Mobile2Win OnMobile PE/VCfirmsmaking Investmentstotap theopportunitiesin the opportunities in growingVAS market

Investor

Target
OnMobile One97 SMSGupShup PayMate

%Stake
5 n.a. n.a. n.a. 0.9 0.95 3.54 n.a. na n.a. n.a. n.a. n.a.

AmountUSDmn
13 13 16 15 11 9

30

3 2 1 10 5

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Marketformobilemusicandgameshasbeengrowingandis expectedtoboostfurther
GrowthinDemandforMobileMusicandGaming
Thereexistsahugedemandformobilemusicinthemarketandthissegmentisexpectedto growstrongly
By2009,over75%oftotalmusicsalesexpectedtobemobilemusic INR bn
60 40 20 0 9

MobileMusicMarket
+124%
45

Highrevenuesare expectedfromM musicandgaming

2008

2010

Demand for mobile games is also strong as consumers are moving beyond simple Java based DemandformobilegamesisalsostrongasconsumersaremovingbeyondsimpleJavabased gamestomorecontentrich3Dgames MobileGamingMarket
INR bn
20 10 0 1 18

+162%

2008

2011

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Strategictieupshavebeenseenbetweenmobilemanufactures/ operatorsandMVASplayerstowardsgeneratinghighrevenues
PartnershipsbetweenMobileManufactures/Operators&MVASPlayers
MobileoperatorshavepartneredwithplayersintheVASindustryforthedevelopmentof customizedapplicationplatformssoastoaccessawideuserbase Strategicpartnershipshavebeenmade,underarevenuesharingmodel,throughwhich applicationsprovidedbyVASplayerscanbeaccessedeasilyonspecifichandsets Mobilemanufacturer/operator Nokia Samsung Airtel Idea, RelianceCommunications R li C i ti Spice BSNL MVASPlayer Indiagamesand Mauj Indiagamesand Mauj j IMIMobile Cellebrum C ll b Indiagames Objective Downloadringtonesandgamesusing NokiasNseriesmobilehandsets MakingIndiagamesandMaujthefirst choiceofdownloadforringtones, wallpapersandJavabasedgames allpapers and Ja a based games DevelopingaTamilvoiceportalwith ringtones,greetingsetc. Providebackgroundmusicservices Provide background music services throughIVRS Provideplatformforonlinegameson demand
Strategicalliances towardsrakingin towards raking in largeprofitswith minimalcosts

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Playersinthisindustryareconsolidatingtheirpositioninthe marketthroughinorganicgrowth
GrowthviaAcquisitions
Playersintheindustryhavebeenexpandingtheirproductportfoliobyacquiringcompaniesand tappingintotheirexpertiseinordertoexpandmarketaccess
Heightened competitionhasled toacquisitionsasa costeffective choiceofexpansion

Date

Acquirer

Target

DealSize

Implications Increase revenues by USD 10 mn IncreaserevenuesbyUSD10mn Expandmarketpresencebypoweringthemobileandonlinedigital marketinginitiativesofmajorbrands,publishersandretailersacross Europe TapintoDx3sassociationswithmajorlabelcompanieswithaccessto alargemusiclibrary(~2mntracks) g y DevelopnewspeechrecognitionlanguagemodelsbyusingTelismas expertise TappingintoVoxMobilisdataproductsandVAStotelecomoperators inEuropeandUS Accessserviceslikephonebackupsolutions,whichallowsusersto savemobilecontentinoperatorsnetworkserver Bringeasydownloadingofphotosandvideostothedomesticmarket throughexistingtechnologyplatforms Expand into voicebased VAS and enterprise solutions segment ExpandintovoicebasedVASandenterprisesolutionssegment

Nov2008

IMIMobile

Dx3

n.a.

May2008

Onmobile

TelismaS.A.

INR692mn

Sep2007

OnMobile

VoxMobili

INR1435.1mn

Nov2006 Nov 2006

One97 Communications

PositiveComsol Positive Comsol

n.a. na

MOBILEVALUEADDEDSERVICES INDIA.PPT

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EnterpriseVAShasbeengrowingwithcorporatesrecognizing thepotentialavailableviatheseservices
StrongDemandfromCorporateforEnterpriseVAS
CorporationsacrosstheboardhavebeencapitalizingontheservicesofferedviaenterpriseVAS
InMay2008,DeccanlaunchedMFly,amobilebasedticketingandinformationsystemthroughwhich travelerscanbook,payandgenerateaneticketusingtheirmobilehandsets t l b k d t ti k t i th i bil h d t Madvertisinghasseenagrowingtrendwithmanycompaniesoptingforthiscosteffectiveroutefor advertising Largescaleusage duetohighmobile penetration

Enterprise

Enterprise Service Providers Companies thatare equippedto sendbulk messagesto thetargeted enduser usingvarious software 30%

Mobile Mobile operators Support content deliveryto thecustomers

Description

Corporations interestedin reachingout toconsumers onmobile platform Bearsthecosts

Revenue Split

70%

Enduserdoes notpay

Theenduserdoesnotincuranycostsfortheinformationreceived Th d d ti t f th i f ti i d

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 Introduction MarketOverview Drivers&Challenges Trends FutureOutlook Competition Key Developments KeyDevelopments

MOBILEVALUEADDEDSERVICES INDIA.PPT

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Introductionof3GtechnologyandthegrowthindemandforM commercewillboostthemarket
Introductionof3G Technology TopApplicationsin2008 MusicandGames M i dG Contests/votingServices Auctionfor3G spectrumisexpected spectrum is expected totakeplaceinFY 200910 Willboostmobile broadband penetrationasitwill allowforhighspeed datatransfer Informationservices(alertsetc) IVRServices MMS TopApplicationsin2010 MusicandGames UGCandSocialNetworking IVRservices Mcommerce
19%ofsubscribers(approx.49.6 mn)usinghighendphonescanbe targeted

Changeinrevenuemodel

Operatorsshare expectedtodecline expected to decline to30% Otherplayersacross thevaluechain accountingfor almost70%,as comparedto40% currently

LocationBasedServices

MVASisexpectedtoaccountfor 16%ofoperatorsrevenuesby 2010

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ApplicationslikeIVR,Mcommerce,Locationbasedservices..
Service MobileMusic ApplicationsandTrends Musicdownloadandstreamingwith growthin3G Users Acrossconsumers fromurbanto ruralareas rural areas Youth CurrentStatus FutureOutlook

UserGenerated Create,downloadandsharemobile Content& themes,wallpapersandvideos SocialNetwork Communities Paymentofbills Online/offlineshopping Redeeminggiftanddiscountvouchers Transferofremittances IVR anautomatedtelephonesystem willdrivetheregionallanguagecontent B2B:Resourcetracking C2B:Searchingforabusiness/restaurant B2C:Proximitybasednotifications C2C:Trackingindividuals Marketpresence M k t
VeryHigh High

MCommerce

Credit/debitcard ownersandNRIs Hugedemand expectedfrom ruralmarket Youth,logistic Youth logistic companiesand urbanconsumers

IVR

LocationBased Services

Medium

Low 29

MOBILEVALUEADDEDSERVICES INDIA.PPT

..MobileEmailandInstantMessagingexpectedtowitness growthinfuture
Service Stock Performance ApplicationsandTrends Trackstocks Financialnewsandreports Changingtradinglimits Emailingamongcorporatesaswellas SMEs Immediatelyrevertingtocustomer queries queries Allowsforcustomizationoftext Groupmessagingservices Inventorymanagementandtracking Connectingwithmultipleusersusinga uniformplatform Communicationbetweenorwithin enterprisesusingVOIP Users Investorsand brokeragefirms g Corporationsdue tocostbenefits andoperational efficiencies Youth, corporations primarilylogistics companies Youthandlarge enterprises CurrentStatus FutureOutlook

MobileEMail

EnhancedSMS Service

Instant Messaging(IM) Other

AdRingBacktone:Applicationthroughwhichtheuserhearsanadvertisementwhilecalling HealthSector:ConveyinformationviaSMSsuchasappointmentsandmedicinedosagestopatients

Marketpresence M k
VeryHigh High Medium Low 30

MOBILEVALUEADDEDSERVICES INDIA.PPT

 Introduction MarketOverview Drivers&Challenges Trends FutureOutlook Competition Key Developments KeyDevelopments

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31

Ahighlycompetitivemarketwithplayersconstantlydeveloping servicestocapturemarketshare
Overview
Themarketishighlyfragmentedwithalarge numberofdomesticplayers
Therearemorethat100companiesregistered withtheInternetandMobileAssociationofIndia (IMAI)asVASenterprises OnMobile 14%

MarketShare

Manydomesticplayershavealsopresencein theinternationalmarkets
Comvivahaspresenceinmorethan80countries with60%ofrevenuesfromoverseas TanlaSolutionsservicesareavailableinUSA, Ireland,UK,Spain,SouthAfrica,UAE,SriLanka andSingapore

7%

Tanla

14% Geodesic Others 65%

Foreignplayershavealsoenteredthe domesticmarkettocapitalizeontheprofit incentives Majorplayers

Domestic Onmobile,Geodesic,TanlaMobile g , y y , g Foreign Affle,JulySystems,Voicegate

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Playershavepresenceacrossvaluechainandoverlapfew segments
Players
ACLWireless Affle Air2WebIndia Comviva CellNext Geodesic HungamaMobile IMIMobile IndiaGames JulySystems Jump mCheck Mauj Mobile2win One97 OnMobile Paymate Phoneytunes SMSGupshup TanlaMobile VoiceGate MOBILEVALUEADDEDSERVICES INDIA.PPT

ContentProvider

ContentAggregator

TechnologyEnabler

33

DomesticPlayers(1/4)
Players ACLWireless Overview Establishedin2000,HeadquarteredinNoida Servicesavailablein20countries p Investors:MIHGroup&InterAsiaVenture Management Establishedin2000,HeadquarteredinChennai ServicesinIndia,USA,UK,France Investors:TheCarlyleGroup,VantagePoint VenturePartners,JupiterVentures Establishedin1999,HeadquarteredinNewDelhi FormerlyknowasBhartiTelesoft Servicesofferedinover80countries Investors:BhartiEnterprises,SequoiaCapital, CiscoSystems Establishedin200001,HeadquarteredinNew Delhi ServicesofferedtotheIndianmarket Outlook Specializinginthedevelopmentofconsumer centricmobilecommunityapplications Also focusing on managed mobility services Alsofocusingonmanagedmobilityservices Targetingvarioussectorstowardsdeveloping theirbrandsthroughmobilemarketing Providingcustomersolutionsenhancing businessrelationships b i l i hi Focusonenablingendtoendserviceand customerlifecyclemanagement Focusoncreatingplatformsenablingmobile userstointeractandaccessinfotainment users to interact and access infotainment 60%revenuegeneratedoverseas DevelopedaWAPsiteallowingaccessto wallpapers,polytones,truetones,themesand games Focusonmobilecampaigningand entertainmentplatforms

Air2WebIndia

Comviva

CellNext

Note:Thelistisnotexhaustive

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DomesticPlayers(2/4)
Players Geodesic Overview Establishedin1999,HeadquarteredMumbai ServicesofferedinUS,UK,Sweden,Mauritius, GermanyandHongKong Financials(0708):INR2693mn,profitINR1104 mn Establishedin2001,HeadquarteredinMumbai Servicesofferedinover30countries Powers~70%ofallbollywoodmobilecontentin India Establishedin1988,HeadquarteredinMumbai Servicesofferedacross40countries Services offered across 40 countries Investors:SparkVenturesPlcandFirstMarkCapital Establishedin2000,HeadquarteredinMumbai Servicesavailableinover75countries Investors: UTV Adobe Inc and Cisco Systems Inc Investors:UTV,AdobeInc.,andCiscoSystemsInc. Establishedin2001,HeadquarteredinMumbai Servicesavailableinover40countries Outlook FocussingonVoIPapplications Expanding into mobile social networking Expandingintomobilesocialnetworking Focussingonprovidingmobileentertainment whilediversifyingintoservicesinrelationto airlines,hotelsetc. airlines hotels etc Enablingviewingofbollywoodfilmsonmobile phones Leadingproviderofcarriergrademessaging platformsandgateways,contentmanagement platforms and gateways,content management systemsandvoiceplatforms Developinggamescompatiblewillmost technologyplatformsforwideaccess Focus on flash based games Focusonflashbasedgames Partneringwithcontentowners,publishers, mobileoperators,handsetmanufacturersand technologyprovidersinordertocreate cuttingedgegames

Hungama Mobile

IMIMobile

IndiaGames

Jump

Note:Thelistisnotexhaustive

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DomesticPlayers(3/4)
Players mCheck Overview Establishedin2005,HeadquarteredinBangalore ServicesavailableinIndiaandSriLanka Investors:DraperFisherJurvetson Establishedin2003,HeadquarteredinBangalore Servicesavailablevia25operatorsworldwide Investors:Sequoiacapital Establishedin2003,HeadquarteredinMumbai ServicesfocussedontheIndianmarket Investors:NorwestVenturePartners,NexusIndia Investors: Norwest Venture Partners, Nexus India CapitalAdvisors,SoftbankChinaVentureCapital, SVBIndiaCapitalPartnersFund Establishedin2000,HeadquarteredinNoida ServicesfocussedontheIndianmarket Investors:IntelCapital,SAIFPartners,SVB FinancialGroup Outlook Formingassociationswithoperators,banks andretailerssothatcustomerscanpaybills, shoponlineetc. Establishservicessuchasmerchant transactionsandP2Ppayments Focussingondevelopingtheirmobile marketingandadvertisingbusiness Developing applications such as video ring Developingapplicationssuchasvideoring tonesandlocationbasedservices PartneredwiththeAltruistGroupinorderto offeravariedportfolioofproductsand servicesincludingvoice,SMS,WAP,and services including voice SMS WAP and locationbased

Mauj

Mobile2win

One97

Strategicpartnershipstowardsdeveloping innovativecontentandinformationservices

Note:Thelistisnotexhaustive

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DomesticPlayers(4/4)
Players OnMobile Overview Establishedin2000,HeadquarteredinBangalore Servicesavailableacross21countries Investors: Argo Global Capital Infosys Investors:ArgoGlobalCapital,Infosys TechnologiesLtd,DeutscheBank,GoldmanSachs, PolygonInvestmentPartners Financials(0708):INR2618mn,profitINR337mn E t bli h d i 2006 H d Establishedin2006,HeadquarteredinMumbai t di M b i ServicesavailableinIndia,USA,SriLanka,Nepal Investors:SherpaloVentures,KleinerPerkins Caufield&Byers,MayfieldFund Established in 1999 Headquartered in New Delhi Establishedin1999,HeadquarteredinNewDelhi Servicesavailableindomesticandinternational market Establishedin2004,HeadquarteredinMumbai ServicesavailableinIndiaandUSA l bl d d Establishedin1999,HeadquarteredinHyderabad ServicesavailableinIndia,USA,Ireland,UK,Spain, SouthAfrica,UAE,SriLanka,Singapore Financials(0708):INR1290mn,profitINR873mn Outlook Formassociationswithoperatorsandcontent providersforcustomizedservices Constantlyexpandinginternationally Focusonringbacktoneandvoiceportalwhich accountsfor75%ofrevenues ForayingintomobileadvertisingthroughAd RBT Partnershipswithbankstoenhancepayment hi i hb k h P servicesportfolio KeyfocusareasareP2Ppaymentsand remittance FocusedoncreatingapplicationsontheWAP platform Continuouslyaimingatexpandingportfolioin applicationsrelatedtogroupSMSservices pp g p

Paymate P t

Phoneytunes

SMSGupshup

TanlaMobile

Focusesonmobilecommerce,mobile entertainmentandmobilemarketingand advertising

Note:Thelistisnotexhaustive

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ForeignPlayers
Players Affle Overview Establishedin2005,HeadquarteredinUK OperatesinUK,India,Singapore,Malaysia,USA Investors: Microsoft India Investors:MicrosoftIndia Establishedin2002,HeadquarteredinLA ServicesavailableinIndia,Germany,US,UK&UAE Investors:MotorolaVentures,CharlesRiver Ventures,NeoCartaVentures,SequoiaCapital, Jumpstartup,AcerTechnologyVentures,Silicon ValleyBancshares Establishedin1989,HeadquarteredinCanada bl h d d d d ServicesavailableinIndia,CanadaandUSA Outlook Focusonbuildingstrongrelationshipswith operatorsinthemarket Developsoftwaretowardsenhancingthe servicesofferedthroughSMS2.0application Focusonpartneringwithmediacompaniesin ordertoprovidetechnologyandtoolswhich allowsestablishmentstocreatecustomized contentformobileportals content for mobile portals RecentlypartneredwithCNNIBNtoprovide mobilecontentonIndias2009General Elections Focusingonmonitoringsolutionsandvoice processingplatforms l f Planstoexpandportfoliobyenteringcontent aggregationandcontentdevelopment

JulySystems

VoiceGate

Note:Thelistisnotexhaustive

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 Introduction MarketOverview Drivers&Challenges Trends FutureOutlook Competition Key Developments KeyDevelopments

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KeyDevelopments
Date 31Mar08 Development TanlaMobilehassetupamobilecontentjointventurewithZedtofocusonthedevelopmentofmobile productsandservicesforthegrowingmobile.Zedisexpectedtobringintheirexperienceandmarketing reach,whileTanlawillprovidethetechnologyandplatform. h hil T l ill id th t h l d l tf IMIMobileacquiredMusic2youfromNokiaandwillnowprovidefulltrackmusicdownloadand subscriptionservicestotelecomoperatorsandmediacompaniesacrosstheworldincludingVodafonein India,AOLinGermanyandAkadoinRussia SpiceMobileslaunchedatechnologicallyadvancedVASenabledmobilephoneunderthebrandSpiceS Spice Mobiles launched a technologically advanced VAS enabled mobile phone under the brand Spice S 940.Thehandsetcansupportsocialnetworkingapplications,Mlearningandemail2SMSservices. IndiatimespartneredwithStratosHearTechnologiesandlaunchedawebsitecalledadringles.com throughwhichcustomerscanearnbymakingcertainadvertisementstheircallerringbacktones. AdvertisementsareavailableinEnglish,Hindiandotherlanguagesbasedoncustomerpreferences. NetXcell,atelecomapplicationservicesprovider,tiedupwithSinglePoint,aUSbasedmobileaggregator andmediainteractivityexpert,todelivervalueaddedservicestomobileoperators.ThisgivesNetXcell theopportunitytoaccesstheUSVASmarket. NokiapartneredwithMalayalamManoramatodevelopIndiasfirstvernacularnewsportalonmobile phones.ThisallowedindividualsintheStateofKerelatoaccessnationalandglobalnewsusingtheir h h ll d d d l h f l l d l b l h GPRSenabledNokiahandsets.

24Feb09

28Jan09 28 Jan 09 3Sep08

12Feb08

04Jul07

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Thankyouforyourtime
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