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'India global hub for value added services'

The revenues from VAS sector in India have been growing at an annual rate of 30 per cent and is likely to grow at a faster pace in the coming few years.

india Updated: Aug 16, 2006 16:04 IST

India has become a hot spot for global technology companies trying to cash in on the booming telecom market by offering Value Added Services (VAS) to telecom operators.

In the urban markets, where the voice mobile telephony is virtually reaching at its saturation level the operators are also looking at VAS operations as the new source of income.

The revenues from VAS sector in India have been growing at an annual rate of 30 per cent and is likely to grow at a faster pace in the coming few years, Telenity CEO Dilip Singh said.

As voice ARPU (Average Revenue Per Share) is declining worldwide, maintaining and increasing the subscriber base and deploying the right value-added services quickly and efficiently has become critical for operators to sustain their profitability and growth, Singh said.

With an aim to tap the fast growing VAS market, Telenity is planning to set up an R&D Centre with an initial investment of Rs 30 crore.

"We will set up an R&D centre either in Delhi or in Pune by the end of next year to offer application-based services to consumers. We will invest Rs 5 crore in the first phase and increase it to Rs 30 crore in the next 3-5 years," he said.

Another US-based telecom software company OnMobile also aims to cash in on the booming mobile industry in India.

The demand for ring-back tone alone amounts to over 8 to 9 million downloads per day with over 20 million people using multi-media services in their devices, OnMobile CEO Arvind Rao said.

VAS demand has increased in rural areas and is likely to go up further with the local languages being used to provide such services, he said.