(For Paper Presentation in CAN Info Tech 2014-5th January 2014)
Presented by :
Ms. Reena Dongol
Deputy Manager, GSM Business, Nepal Telecom.
Email ID: reena.dangol@ntc.net.np
Outlines
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Background of mVAS
Types and Services
mVAS Ecosystem
mVAS Benefits
Why mVAS in Telecom Market?
VAS Licensing Regime in Nepal
Nepal Telecom Case Scenario
Differences between Current & Emerging VAS
National Trend of
Global Trend of mVAS
Limitation /Challenges in mVAS
The Way Forward…
Background of mVAS
 Traditional : 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 Services
 Information Based
 CRBT,MCA, Contest, m-Learning, m-Governance, m-
Health , m-Commerce, Social Networking etc.
mVAS Types & Services
 Mobile Backup Entertainment (Wall paper, Horoscope,
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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 Collaboration
Public 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 Branding
 Customer Retention
 Growth in Revenue without much effort
 Customer
 Comfortable Lifestyle
 Updated to Latest Happenings
 Best Value for Price
 Easy Access, no hassle
mVAS Benefits
 Content Provider/Application Providers/ Mobile
Advertiser
 Aggregator
 Technology Enabler
 Handset Manufacturer
 Source of Profitable Business
 Opportunity for National Contribution
 Best platform for Market Presence
 Growing Trend
Why mVAS in Telecom Market?
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Not a main business
Huge Competition in Telecom Business
Growing Customers demand
Biggest Challenges to Telecom Operator
 Customer Churn
 Revenue Loss
 mVAS best fit for current survival
 Customer retention
 Attraction to customer
 Helps in Revenue growth
 No extra effort to Telecom Operator
 Bearer Channel Only
mVAS Licensing Regime
 Telecom Operator
 Need Telecom Authority Regulatory Body for VAS
Licensing Regime
 Telecom Authority/Regulatory Body can
 Helps in National Social-Economy Development
 Control the mVAS Market
 Reduce Institutional Conflict
 Quick in Adaptation of Innovative Application Services
 Bring about Social Security, Timely Awareness
 Gain 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 Selection
 Tendering (dated BS 2063 Shrawan- AD July 2007)
 Beauty Contest (from BS 2066 Chaitra- AD March 2010)
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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
Nepal Telecom Case Scenario
Selection of mVAS Service Providerscontd.
 Service Approval from NT Management
 Provisional Period (mostly 6 months)
 Contract Period (mostly 1 year)
 Renewal (mostly in yearly basis)
 Tariff and Short Codes approved from NTA
 Connectivity charges (set defined charges from
July 14th 2013)
 Evaluation of Service prior to renewal of VAS
License
Nepal Telecom Case ScenarioYear wise GSM Revenue
% of VAS Revenue (in terms of GSM revenue)
1.4
1.2
1
0.8
0.6
0.4
0.2
0
% of VAS Revenue (in
terms of GSM
revenue)
2009
(65/66)
2010
(66/67)
2011
(67/68)
Nepal Telecom Case Scenario –
mVAS Revenue
29
20
Revenue Sharing
SMS
Rental Based
IVR
6
45
CRBT
4M mVAS users including CRBT
Nepal Telecom Case Scenario –
Existing mVAS mostly entertainment
& SMS based
 SMS/ IVR Based
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Information Services
Banking
Quotes Love/ Friendship/ Hates etc
Horoscope
Sports
Hospitals
Digital Visiting Card
Gender Violence Reporting
Software SMS integration service / API
Quiz / public opinion
Voting/ Contest
Mobile Finance
 Premium VAS (CRBT, News Alert, Voice Chat, MCA)
Emerging mVAS servicesNew age application with enhanced content
and higher data usage
 SMS/ IVR/ USSD/ WAP/CRBT Based
 Gaming
 TeleVoting
 Chat
 Social Networking
 Local Language Voice Responses
 mHealth
 mGovernance
 mAgriculture
 mLearning
 mCommerce (enabler for mobile payment)
 Wall Paper
 True Tone
and many more…
Nepal Telecom mVAS servicesIn Near Future (10M GSM Project)
 20% 2G, 40% 3G
 Target for 5% Revenue in 2014
 High speed data, Attractive data packages
 Contracted with few more VAS providers with
innovative products
 USSD service in the process of operation
 Advancement 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
Nepal
 Lack of Strong Regulatory Policies
 mVAS Licensing/ Renewal
 Tariff
 Charging for Resources
 Content Privacy
 Copyright
 Royalty
 Revenue Sharing
 Financial Transaction
 Performance Security
 Insurance
 Approval of Emerging Application Services
Limitations/ Challenges of mVAS
in Nepal
 Handset that does not support Local language
 Bandwidth Limitation
 Traditional mVAS
 Existing TDM Telco Infrastructure
 Lack of Effective Marketing
 Lack of Content in Regional Level
 Costly Service due to low volume
 Lack of proper exposure
 Spam messages etc.
The Way Forward…
 Urgent Need for a CLEAR Policies and Regulatory
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Framework
Identify Role Model Players in mVAS Ecosystem
Educate End Users
Access to Mass Market/ High Availability/ Affordable
Services
Encourage Growth of Local Application & Contents
Monitor Growth in mVAS Revenue
Survey/ Expose to Key Areas for Future Development
Adapt to Emerging mVAS
Periodic Review on mVAS
Reduce Time-To-Market
Thank you…