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Guest Column: Indian Mobile VAS to grow at 18.5% CAGR in 2015-2020: Dushyant Jani, Mobclixs Technologies

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Guest Column: Indian Mobile VAS to grow at 18.5% CAGR in 2015-2020: Dushyant Jani, Mobclixs Technologies

VAS, which was just a source of entertainment, has now become a necessity in today’s dynamic environment, says Dushyant Jani, founder and CEO, Mobclixs Technologies.

With the increased usage of smartphones throughout the country, the use of Value Added Services (VAS) has also seen a mammoth rise. As a result, a range of new as well as cost effective smartphones are launched almost every fortnight to quench the ever-growing demand of consumers spanning different age and market segments.

Indian Mobile VAS (MVAS) is expected to grow at the rate of 18.5% CAGR (Compound Annual Growth Rate) during the period 2015-2020. The Consumer VAS and the enterprise VAS is expected to grow at the rate of 19.7% and 19.3% from 2015 to 2020, respectively. With the increased 4G penetration network offered by various telecom operators, consumers have been exposed to advanced technology via user friendly apps. The target markets for telecom operators today also include the rural population, apart from the urban markets, and helping farmers and small scale industries enhance their production with the launch of new applications.

As per a research conducted by the Study of National Sample Survey Office (NSSO), people in rural areas spend 25.33% of their income on mobile phones and telephone usage. In terms of Monthly Per Capita Expenditure (MPCE), the highest amount spent on communication services is estimated at Rs 36.35 in rural and Rs 102.46 in urban areas.

India is approaching a cashless economy with the extensive use of money transfer applications such as Paytm, Mobikwik, Ola Money and many others. With cashless economy gaining importance today, people are pushed towards the use of plastic money, which assists them to pay bills, transfer money and make use of various other banking functions with just a click. High quality data with competitive pricing offered by the telecom operators has made digital transactions easy for the masses. Mobile payment transactions in India will likely rise up to Rs 22,000 trillion by 2021-22 as compared to just Rs 8 trillion as on FY 2015-16 as per the study of M-Wallet markets. Likewise, Paytm has registered over 7 million transactions in a day, marking the extensive use of e-wallet transactions and digital payment platforms.

Consumers are further exposed to easy modes of digital communication and applications which help routine needs. Thus, VAS, which was just a source of entertainment, has now become a necessity in today’s dynamic environment. The digital market has seen a constant growth in the year gone by and to meet new and ever-growing consumer requirements, VAS companies are now exploring new-age engaging and creative content to keep the users hooked.

VAS revenues will see a rise in the days to come due to extensive data usage, which has now become a core necessity in the recent times. The new mobile trends have witnessed operators providing seamless, high-speed data packs spanning all regions, making it easier to reach out to every corner of India. Hence, in accordance with the leading market trends, digital companies too are seen tapping unexplored, creative, and engaging content.

(The author is founder and CEO, Mobclixs Technologies)

Disclaimer: The views expressed here are solely those of the author and do not in any way represent the views of

Tags Dushyant Jani Mobclixs Technologies VAS MVAS

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