MVAS subscription record management – New Threat for Indian MVAS Suppliers and Mobile Operators

As per the directive from government regulators, all MVAS (Mobile Value Added Service) provider both in OnNet and OffNet environment of Mobile Operator must maintain subscription record of all offered MVAS product or application or services. The new directive is going to be in force by 10th of July 2013. In new directives, there must be a mechanism for double verification of any new subscription or renewal of MVAS on pull or push basis from OffNet an OnNet environment which is directly or indirectly connected with Mobile Operator Network. On one hand, new directive is going to be relief for MVAS users whereas it is going to bring in multiple technical, operational and financial implications. In the past one years, on accessing financial results of both Mobile Operators and MVAS ecosystem players, it is evident that MVAS regulation impacted their revenue stream negatively and new directive is going to make ecosystem players business model more negatively than positively. As claimed by TRAI that there is an easy exit mechanism in place to surrender MVAS product or services but I humbly think the other way. The exit mechanism onus should not be user initiated but should be focussed on the first step of subscription request. The new directive is going to increase the churn rate of MVAS users further and financial impact is going to be much higher than expected.

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