Biggest Revenue Source After Voice Calls - SMS

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The market size for VAS in India is about 2850crores and is said to be Rs4500crores by 2007end. VAS and it contributes between 5-10% of the revenues of different Telcos.

VAS includes –
P2P SMS -Rs. 1140 crore
Ringtones (including CRBT) - Rs. 1026 crore
P2P & A2P- Rs 428 crore
Games & Data- Rs. 171 crore
Others (MMS etc) - Rs 86 crore (Source)

In this article we will discuss about the biggest VAS revenue generator “SMS” and the services that can be used just by a simple sms
Around 10 billion messages are being sent each month in the country. (agencyfaqs)
If you only include p2p (person to person) SMS, it contributes to about Rs1140 crores that’s about 40% of the total market share of Rs 2850 Crores as of 2006.

Other than simply messaging each other and getting spam messages, there are lots of other services/functions that are accessible using sms. Some of the other services/functions include – (Source agencyfaqs)

Paymate offers payment solutions on the mobile phone using sms facility and ha also launched a solution, which enables calling a taxi through an SMS.

Some Websites allow users to search, book and pay for airline tickets using SMS facility.
Jet Airways had launched an SMS check-in facility via sms.

Fame Adlabs and PVR Cinemas enable users to book tickets over mobile phones.

Bharti Airtel, are looking at offering location-based services over SMS. The companies will send a reply SMS, informing the user the exact address of a chemist, a petrol pump or an ATM.

Farmers can check prices of commodities, buy and sell material all trough text messaging.

anti-theft software that send SMSes to a pre-designated number when the SIM card of a phone is removed

Conclusion –
While sms is primarily and will also in the future be big source revenue from VAS, ringback tones and other services will soon pick steam. The reason sms is doing really well is because.
It comes with each and every mobile price is not an issue.
It is the easiest thing to do after Voice calls.
Helps stay connected with others without disturbing.
Its very cheap compared to any other Value added service.
Lack of knowledge of other services

A lot of us till today just send sms to each other. Indian companies and startups have realised the potential of sms. There are Indian Social networks that work on sms. Desi martini provides such service. Click here to read . companies are providing sms based advertising, marketing, some are even paying for receiving sms. as mobile penetration keeps increasing sms services will have a boost as even the cheapest phones have this service. So for the ones who thought that the sms era is over, think again…


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Gautam Bhatia

2 Responses to “ Biggest Revenue Source After Voice Calls - SMS ”

  1. I already provided suggestion for Watblog on birthday event to include SMSing the blog title.
    I want to keep update of each and every article of watblog so its better to include SMS intimation of blog title just like emergic.org.

    Looking fwd for the same.

  2. We are looking at it Mahesh. We take suggestions seriously….

    Cheers!

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