4G Era VAS Growth Potential in India - Mobile Service Provider's Vs. Smartphone Player's

The Indian VAS ecosystem witnessed turbulent time for the last 5 years post MVAS regulations. Indian regulatory body came out with MVAS regulation to protect Indian mobility user and imposed number of authentication and authorization process in order to kill unwarranted billing to end consumer.

The double consent mechanism implementation knocked down Mobile Operator VAS business and Mobile Operator witnessed de-growth in the segment. The entry of OTT players especially the messaging players killed flourishing SMS business which include P2P, A2P and P2A. The sudden move by regulatory body knocked out many VAS players from the market whereas some other segment like Music, gaming etc witnessed tough time retaining the consumer and generating revenue out of them. The revenue share model between Mobile Service Provider's and Content Provider's also made the business sustainability more difficult.

While the transition was happening during MVAS regulation implementation; India started witnessing adoption of Smartphone in Early 2012. It offered huge window of opportunity for the VAS player to acquire user through indirect channel. Many companies from content, music, gaming turned towards Smartphone players to acquire new user. Smartphone player's captured the opportunities with both hands and started selling their inventories in return of space asked by the VAS providers. Some of the Smartphone players even integrated FOTA solution from leading FOTA service providers in order to ensure that they can mint money through existing consumer base. The unprecedented growth in the startup segment in early 2013 made Smartphone player the darling of all.

The limited space in the device and limited leading Smartphone players made the situation worse when Smartphone player started asking for hefty price point to integrate any VAS services or applications without any commitment of user adoption, retention, usages etc.

Many startup companies poured in many million $ in order to get the userbase without any solid business case to retrieve the invested money and disappeared after some time.

In 4G era VAS it will be very interesting to see how the VAS ecosystem pans out between Mobile Service Providers and Smartphone Players. Smartphone players are coming out with higher RAM and ROM which can sustain heavy load and may offer good consumer experience provided consumer gets better network coverage.

At the same time, Many Mobile service provider started developing their own VAS ecosystem and went to market to acquire users like the other applications. The only differentiation what Mobile Service Provider implemented is the monetization part. Mobile Service provider now acts as VAS aggregators which can be delivered through the applications to consumer based on the consumer wish coupled with monetization mechanism. In my point of view, it will help Mobile Service Providers to offer both value add to end consumer as they can offer multiple option compared to Smartphone players.

The Mobile Service Providers are struggling with high cost of service and it is expected that they will be offering virtualized VAS ecosystem to end consumer and Reliance Jio and Bharti Airtel successfully demonstrated that through their number of applications which they can sell while selling the SIM to end consumer.

On a contrary, Smartphone players also started focusing on developing their own VAS ecosystem instead of relying on others for small amount. Smartphone players also trying to develop recurring revenue model based VAS platform and some of the are even successful doing so.

Unfortunately, the low DAU, MAU, Revenue per user are pushing Applications providers to take another route of user acquisition model as Smartphone players dont know who will be buying the product, what are their liking and in that scenario, selling a device the preloaded applications will definitely yield bad result.

I think that Mobile Service Provider's will again take the centre stage and am confident that they will witness the revival of their VAS business in coming Quarters

Indian Telecom Sector Non-Focus Towards Consumer Awareness- May Hurt Business Prospects

Indian Telecom sector is facing tough time for the last 3 years and is expected to experience reduced level of tough business environment. Telecom service providers blamed regulatory un-certainty for tough business environment and lack of product adoption by Mobile Subscribers but that is partially correct. Telecom Regulatory Authority of India (TRAI) and Department of Telecommunication (DoT) India must be appreciated for coming out with mobile subscriber centric and supportive regulation such as Mobile Number Portability (MNP), Mobile Value Added Services (MVAS) and its amendment, Roaming and many more.

Indian regulator were forced to take such a drastic move as mentioned above post multiple and continuous reporting from media and mobile subscribers of unwarranted activation of services, billing and lack of customer support. Regulators moves were focused to bring in competitiveness among Mobile Service Providers and thus to bring back focus on service or network Quality of Service in order to retain or acquire new mobile subscriber. The current Telecom environment and its competitiveness are closely knitted with services or products which are influenced by enforced regulatory to the maximum level.

It raises a simple query that

• How many Mobile Subscribers are aware about their rights?
• How many of Mobile Subscribers are aware about the process of activate or deactivate any VAS services?
• How many Mobile Subscribers are aware about the process to escalate Unsolicitated commercial communications violating their privacy?
• How many Mobile Subscribers are aware about process to escalate billing related concerns to their service providers as well as to regulators?

Based on survey (1500 Mobile Subscribers), the results were shocking as less than 1% were aware of process and generic answer were that we try to get it resolve through customer care and being charged for the same.

Somehow, Somewhere Mobile Service Providers are still missing the link of getting connected directly with Mobile users. Mobile Service Providers analyzed any product or service or application adoptions based on the said offerings activation factor but they must realize that it is difficult to analyze a particular product success when multiple products are hosted and mobile users are not aware.

In most of the new product launch, 6 are going for broadcast messaging to all active MVAS user base or print media such as newspapers or TV advertisement. Mobile Service Providers at an average spend around 5% of their total revenue in ad spend but at the same time they failed to create an awareness among mobile subscribers which focuses on mobile subscriber rights. Different Mobile Service Providers are offering multiple toll free numbers as well as message formats to retrieve automated information for mobile subscribers. Most of the Mobile subscribers don’t remember those toll free numbers or finds it hard to replicate the message format to retrieve information but are forced to rely on Customer Care.

Isn’t it true that, there is “NO” print media or TV communications from Mobile Service Providers creating awareness about mobile subscribers daily Telecom related problem such as product performance, activation /deactivation request, and billing issue. Mobile Service Providers argue that they are running customer care (CC) and also advertise their customer care number through multiple medium. It raises another query around consumer awareness through print media, campaign management and TV advertisement for above mentioned issue. How many times, any mobile subscribers have seen any print media awareness program regarding MVAS, MNP, Roaming and Billing?

The Subscriber feels helpless post continuous attempt to launch simple complaint. It triggered negative response from subscriber to subscribe or renew new mobile value added services such as music, ringtone, Infotainment post double consent enforcement under MVAS regulation amendment. Under double consent regime, service providers must take mobile subscriber consent before charging subscriber for any services or products. The recent drastic fall in MVAS activation and exponential rise in MVAS deactivation is nothing but early warning system. The telecom ecosystem players must realize that it’s not regulation but lack of offered value attached with offered value added service or lack of awareness about offered services or products.

Indian Mobile Service Providers do not have an alternative but to improve on consumer awareness program without fearing that awareness is going to create an environment where mobile subscribers will be deactivating already running services or product but instead of that it will attract many new mobile subscribers to adopt existing or new services.

The further delay in adopting proactive approach towards Mobile subscriber awareness program by Mobile Service Provider will have cascading impact on Telecom ecosystem players. They would be rest assured that in any circumstance their concerns would be resolved on the fly and that is going to trigger higher adoption of new or existing services or products.

In my point of view, the current state of Indian Telecom Sector offer highest level of opportunities for innovative proposition to bring back rapid eroding value added subscriber base.

Why Indian Device Users Should Be Careful While Playing Around With Applications

The era of SMS is being replaced with data centric Applications. The mobile ecosystem players are now focusing on data hungry Application segment to drive revenue. Mobile Service providers are focusing on selling their data pipes and create auto cycled data revenue driven by Infotainment and Entertainment. On the other side many Applications providers from Retail, BFSI’s, FMCG’s, Education, Servicing and other sectors are offer mobile network agnostic Applications to increase awareness among their existing customer base and trying to capture additional one in order to propel growth and competitiveness.

The competitive environment among consumer and prosumer segment based Application providers offering lots of opportunities as well as concerns for the end consumers and prosumer’s. The two dominant Mobile OS ecosystem such as Android and iOS capture more than 90% of the Application system where iOS market share is only 14%. The iOS ecosystem is much closed whereas Android ecosystem is very open system and widely adopted by consumer and prosumer’s base.

The rampant push by Application providers through multiple means without taking responsibilities on themselves, they create Terms and Conditions favorable for them to bypass any legal liabilities on them.

Indian ecosystem is not having any regulation with respect to Applications and the following are the some of the focal assessment points for mobile device user before downloading or using any applications.

1. Read terms and condition carefully, if T&C force mobile device user to give consent for taking mobile user information or contact list information then donot accept. It may lead to exposing ones near and dear one information to Application providers. Please note that the retrieved contact information can then be used by Application providers to push unwarranted Applications to your contact list based people as well as increased pesky call and SMS. The current trend of most of the Application provider to collect mobile device user information along with other information sitting on one’s devices.

2. Before downloading any Application, please visit Application providers website and check their location. One must make sure that even though device owner give their consent to Application providers to take their primary information such as Mobile Numbers, Device Type, Requested Application for download but the information should reside in India. Most of the Application providers maintain their servers outside of India and incase of any hacking of their servers, device owners information would be exposed for security attack.

3. Before downloading an Application, Please make sure about the size of an application. If the size of Application is high then it would consume more RAM and subsequently impact the performance of device such as device slowdown, battery dranage etc. If mobile device owner decide on downloading an Application then they must check the RAM and ROM consumption on manage Application section. In the APP section, the actual size of Application would be visible whereas on screen pullover, the Running section would let you know the exact consumption done by Application.

4. Post downloading an Application, please check if Application is continuously running on the background or one can close it. If it is running continuously then there might be a chance that Application is reading all your activities and according pushing advertisement or other applications.

5. Always maintain SD card and download all new applications on SD card and it carry multiple benefits to device owners. Generally device user buying device with high internal memory and neglect in adding SD card. Directly downloading on device internal memory may expose all activities of mobile device user.

6. Post downloading an Application; please check if Application is not wrapped with other Applications. There are numerous Applications which carry multiple applications. Once device owner download particular application, he suddenly start experiencing appearance of additional application sitting on OS Tray.

7. If device owner is heavy user of social media site then please ensure that device owner clear browser history and cache on regular basis.

8. In today’s world every device users are using messaging Applications in one or another form. Please make sure that device owner cleans the conversation on regular basis. It mitigate the risk of exposing device owner conversation in case of malware or adware sitting on device and communicating with remote servers of hackers.

9. It’s a perception that Mobile security solution impacts the performance of the device but being a device owner; one must make a choice of being vulnerable or subscribe for good security solution from Symantec, MacAfee, Fortinet, Websence, Trendmicro and many more. The mobile security software is very effective in telling mobile device users about any unlawful activities initiated by Malware or Adware pushed by Applications. It is true that these security solution works continuous on the backend but it should be device owner choice to make a decision to secure their activities including financial, privacy, highly priced devices or saving few $ per annum to have a peace of mind.

10. With the adoption of mobile banking, commerce and heavy push by the companies involved in these sectors; it is imperative that today or tomorrow the adoption would increase. Any negligence on device owner end may cost them “robbery through mobile”. The indications are very clear that hackers are moving their focus from wired based connected devices such as PC or Laptop to wireless device centric. The lack of connected technology implemented created vulnerability for Mobile device owner. It would be great if device owner wakes up and initiate mitigate solution implementation else it would not be long before you can also be the target.

11. Never leave your Bluetooth enabled while you are on the move or in crowded place. Device owner may risk their information.

12. Never ever store your banking details in your device. In case of device loss or stealing or information redirect attack, device might lose such important information to unsocial person which inturn can be reused to create havoc.

13. Device owners aware of threats towards device through sleeper applications must create awareness to develop an environment of viral education. It would in turn make device owners more careful while downloading. The indirect impact would be on Good Applications investing millions of $ in Client server development fulfilling all prerequisite and there will be spike in those Application download.

14. Never ever register for multiple email accounts signed in along with the corporate email id. It would risk device owner information in case they click email attached with phishing attack.

15. Always download battery optimizer and Application cleaner as it would help device owner to close multiple running Application and inturn save battery getting drained quickly.

16. And many more and can drop queries through comment. Read more about Smartphone Review

Given the trend of Application usages and activities of many application provider initiatives to capture contextual pattern of device owner and subsequently makes million of $ by compromising device owner privacy, I consider this article as awareness one and should be pushed in viral form. If reader can develop awareness within their dear and near ones then one should consider it as social awareness drive