Current mVAS Scenario

(For Paper Presentation in CAN Info Tech 2014-5th January 2014)

Presented by :

Ms. Reena DongolDeputy Manager, GSM Business, Nepal Telecom.

Email ID: reena.dangol@ntc.net.np

Outlines Background of mVAS Types and ServicesmVAS EcosystemmVAS Benefits Why mVAS in Telecom Market?VAS Licensing Regime in NepalNepal Telecom Case ScenarioDifferences between Current & Emerging VAS National Trend of Global Trend of mVASLimitation /Challenges in mVASThe Way Forward…

Background of mVASTraditional : Enhanced Services that Add Value to the Standard or Core Telco-Services like Voice Calls and Fax Transmission Call Waiting, Call Forwarding, Multi Party

Conferencing, Voice Mail, Email, SMS, MMS etc.

Modern : All kinds of Content and Applications provided on Telco Network apart from Traditional Value Added ServicesInformation BasedCRBT,MCA, Contest, m-Learning, m-

Governance, m-Health , m-Commerce, Social Networking etc.

mVAS Types & ServicesMobile Backup Entertainment (Wall paper, Horoscope,

Jokes, life style, News, games) IVVR Messaging (push-pull service ), Mobile Commerce(Mobile Banking, Utility bill payment

via mobile)Advanced Network Services( Call Block, Missed call

Alert, Pay for me, Balance Transfer) Mobile CRBT(Ringtone, Songs download) Multimedia(video download, Mobile TV, Songs),

Conferencing and CollaborationPublic Safety(different kinds of information provided

by VAS operators)Video Conference(Video Call )Voice SMS( Voice Chat)M- Agriculture, M- Governance, M-Health, M-

Marketing etc.

mVAS Ecosystem

-In reference to TRAI doc

mVAS Benefits Telecom Service Provider

Key Role in delivering information, better situational awareness in disasters, infrastructure planning and national development

Company /its Product BrandingCustomer RetentionGrowth in Revenue without much effort

CustomerComfortable LifestyleUpdated to Latest HappeningsBest Value for PriceEasy Access, no hassle

mVAS BenefitsContent Provider/Application Providers/

Mobile AdvertiserAggregatorTechnology EnablerHandset Manufacturer

Source of Profitable BusinessOpportunity for National ContributionBest platform for Market PresenceGrowing Trend

Why mVAS in Telecom Market?Not a main businessHuge Competition in Telecom BusinessGrowing Customers demand Biggest Challenges to Telecom Operator

Customer ChurnRevenue Loss

mVAS best fit for current survival Customer retention Attraction to customerHelps in Revenue growthNo extra effort to Telecom OperatorBearer Channel Only

mVAS Licensing RegimeTelecom OperatorNeed Telecom Authority Regulatory Body for

VAS Licensing RegimeTelecom Authority/Regulatory Body can

Helps in National Social-Economy DevelopmentControl the mVAS MarketReduce Institutional ConflictQuick in Adaptation of Innovative Application

ServicesBring about Social Security, Timely AwarenessGain Respect from the Citizens

Nepal Telecom Case Scenario –mVAS Bearer Channels

SMS based push-pull VAS [ Mostly Used ]USSD [ Recently Started]IVRs [ Can be most useful in case of

Nepal, only open for few Service Providers ]

WAP Based [Can be useful as there are 6.2 M GPRS users in Nepal ]

CRBT [Mostly Used]

NT Case Scenario Selection of mVAS Service Providers

Selection by Telco Operator under the guidance of its board decisions

Method of mVAS Service Provider SelectionTendering (dated BS 2063 Shrawan- AD July 2007)Beauty Contest (from BS 2066 Chaitra- AD March 2010)

Innovative VAS Access, Awareness, Affordable Easy and Comfortable Lifestyle Addresses Necessity of Subscribers Retention of Subscribers Reduce Time-To-Market Attractive Business Model Technical Viability

No charges on short codes

Service Approval from NT ManagementProvisional Period (mostly 6 months)Contract Period (mostly 1 year)Renewal (mostly in yearly basis)Tariff and Short Codes approved from

NTAConnectivity charges (set defined

charges from July 14th 2013)Evaluation of Service prior to renewal of

VAS License

Nepal Telecom Case Scenario Selection of mVAS Service Providers- contd.

Nepal Telecom Case Scenario- Year wise GSM Revenue

2009 (65/66)

2010 (66/67)

2011 (67/68)

0

0.4

0.8

1.2

% of VAS Revenue (in terms of GSM revenue)

% of VAS Revenue (in terms of GSM revenue)

Nepal Telecom Case Scenario – mVAS Revenue

20

456

29Revenue Shar-ing SMS

Rental Based

IVR

CRBT

4M mVAS users including CRBT

Nepal Telecom Case Scenario – Existing mVAS mostly entertainment & SMS based

SMS/ IVR Based Information ServicesBankingQuotes Love/ Friendship/ Hates etcHoroscopeSportsHospitalsDigital Visiting CardGender Violence ReportingSoftware SMS integration service / APIQuiz / public opinionVoting/ ContestMobile Finance

Premium VAS (CRBT, News Alert, Voice Chat, MCA)

Emerging mVAS services-New age application with enhanced content and higher data usage

SMS/ IVR/ USSD/ WAP/CRBT BasedGamingTeleVotingChatSocial NetworkingLocal Language Voice ResponsesmHealthmGovernancemAgriculturemLearningmCommerce (enabler for mobile payment)Wall PaperTrue Tone and many more…

Nepal Telecom mVAS services-In Near Future (10M GSM Project)

20% 2G, 40% 3GTarget for 5% Revenue in 2014High speed data, Attractive data packagesContracted with few more VAS providers with

innovative productsUSSD service in the process of operationAdvancement in the handset, in the process

of bundling with Android handset    Focus in marketing and awareness campaign

program of mVAS services to  customers

Differences Between Current & Emerging mVAS

Global Trend of mVAS

-In reference to TRAI doc

mVAS Limitations/ Challenges in NepalLack of Strong Regulatory Policies

mVAS Licensing/ RenewalTariffCharging for ResourcesContent Privacy Copyright Royalty Revenue Sharing Financial TransactionPerformance SecurityInsurance Approval of Emerging Application Services

Limitations/ Challenges of mVAS in NepalHandset that does not support Local

languageBandwidth Limitation Traditional mVAS Existing TDM Telco Infrastructure Lack of Effective Marketing Lack of Content in Regional LevelCostly Service due to low volumeLack of proper exposure Spam messages etc.

The Way Forward…Urgent Need for a CLEAR Policies and Regulatory

FrameworkIdentify Role Model Players in mVAS EcosystemEducate End UsersAccess to Mass Market/ High Availability/ Affordable

ServicesEncourage Growth of Local Application & ContentsMonitor Growth in mVAS Revenue Survey/ Expose to Key Areas for Future DevelopmentAdapt to Emerging mVASPeriodic Review on mVASReduce Time-To-Market

Thank you…