The Indian M-VAS (Mobile Value Added Services) industry not only benefits the customers but also the service providers. TRAI (Telecom Regulatory Authority of India) had these services on its radar for fairly some time. Last month, the telecom regulator released a document that featured recommendations concerning the Mobile VAS India industry.
Though these recommendations have been received positively by Mobile VAS India companies, there have been a few apprehensions raised. IAMAI (Internet & Mobile Association of India), the nonprofit industry body said in a press statement, “Without going into the merits of each recommendation, IAMAI is of the view that the set of recommendations are self-contradictory and defeats the purpose with which the consultation paper was published.”
While recommendations such as the formation of a Short Code Council (SCC) for allocation of short codes seem beneficial, flags have been raised about safety and other compulsory compliances that could be a cost barrier for startups and innovators. Another area of concern for Mobile VAS India is the clearness on licensing and how it will help revenue sharing between two commercial entities. Though suggestions were made to explore an operator agnostic payment system for VAS services, the recommendations have not cited anything about the mechanism that will define the relative share of each stakeholder in the VAS chain, which typically is very extensive.
According to professional services firm Deloitte, the size of the Mobile VAS India industry will be Rs 48,200 crores by the year 2015. At present, an enormous mass of the revenue comes from game-based applications and music downloads. But Mobile VAS India companies face a lot of difficulties, be it infrastructure or recruiting talent. The telecom industry has been rising at a mammoth pace and has created a lot of MVAS jobs. Let’s hope that TRAI releases an updated set of recommendations that would ease the pressure on the industry and allow expansion so that more M-VAS jobs can be created.
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