Innovative VAS service offering required to increase sustained APRU in India


Based on the current mobile subscriber base, India contributes around 15 to 17% of total subscriber base of world whereas the ARPU is one of the lowest. The current ARPU in India is around $ 1.9 per month, which in turn is negatively affecting mobile operator to invest on the CAPEX and OPEX. Even though mobile operator increase in voice service tariff by 15 to 20% is not going to improve mobile operator finance, given the demanded one time license fee and proposed spectrum license in 900MHz and 1800 MHz’s, Mobile operator needs to find out other sustainable way to increase revenue to fulfill their strategy to be in the game. On detailed analysis of currently offered VAS (Value Added Services), most of the product portfolio’s are based on the SMS and IVR services whereas the real time data service offering is in nascent stage. Around 20% of the total subscriber base in India, availing VAS services in one or another way that opens an opportunity for mobile operator to change their strategy to focus on innovative VAS services away from extension of existing product portfolio. Indian subscribers indent to try new offering and Mobile operator should try the same to capture curious subscriber base to increase their APRU

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Sunday, 10 February 2013 at 01:19:00 GMT-8 delete

Very nice observations and data presented by Devendraji. Personally, I hate VAS services. But they definitely allow mobile operators to make some extra money from users, hence increasing the revenues.

Anubhav Roy
Author at Rafting Rishikesh