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Mvas Services

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A REPORT ON
BUSINESS POTENTIAL OF NETXCELL’S VAS SERVICES IN SOUTH ASIA
AS A PART OF SUMMER INTERNSHIP AT: NETXCELL LIMITED

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE AWARD OF DEGREE OF
POST GRADUATE DIPLOMA IN MANAGEMENT
AT
INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

INTRODUCTION
MVAS – Mobile value added services are those services that are not part of the basic voice Offer and are availed separately by the end user. They are used as a tool for differentiation and allow mobile operators to develop another stream of revenue.
Mobile remains a vibrant and evolving industry constantly finding new ways to inter-connect the user’s world in spheres such as automotive, utilities, health and education, and new ways to manage financial transactions.
Mobile data continues to drive rapid traffic growth for mobile operators with all regions showing impressive data volume growth rates as more and more people connect to the internet via mobile. In emerging markets, growth will be driven by the increased penetration of smartphones, while in developed markets it will be driven by both greater smartphone adoption and increased download speeds made possible by new technology such as 4G.

Ecosystem for VAS Services Figure 1: MVAS Ecosystem

Content Providers:
Content providers are the entities that own the original content. They are typically media companies and movie studios who own rights for the movies and music. In the US, NFL and NBA provide content for mobile games. In India the content providers are Rajashri Productions, Sony Films etc.

Content Developers:
Often the content from the content providers need to be tailored for the mobile phones. The content developers tailor the content so that it can be viewed in the mobile phones. There are several ‘operating systems’ that are currently prevalent in the mobile phones and it means that the content development needs to be
Done for different operating systems separately.

Content Aggregators:
The content developers and the content providers need a channel that needs to reach the Customers. The content aggregator’s aggregates content from different boutique content Developers and enters into agreement with MSP’s for these content bundles. Often the Content aggregator work with the ODM’s so that the content is embedded in the phones. A very popular content aggregator in India is Hungama Mobile.

Content Service Provisioners/Technology Enablers:
Content service provisioners provide the technical platform that helps the MSP’s to host the content. The technical platform needs to be integrated with the billing system of the MSP’s as well. OnMobile, the largest VAS Company in India is primarily a Technology enabler.

Mobile Service Providers (MSP):
The mobile service provider owns/leases the infrastructure to provide mobile service to the customers. Often, the MSP’s are the only entity that collects revenues from the customers directly. In most markets, MSP’s are the only entities that do the marketing of the VAS products.
Mobile service providers typically provide a standard catalogue for all VAS services or a homepage which can be used to access the VAS services.

In most cases, the MSP’s collect the revenues for the VAS services. The other players in the eco-system get a cut of the revenues from the subscribers.

The four major categories of mobile data service usage:
» mEducation, mEntertainment, mFinance, mHealth.
Within each category, there are three levels of service maturity: basic, enriched and transformational. Basic MVAS services are most often informational, and generally do not offer transactional or interactive capabilities. Enriched services apply the connected and remote nature of mobility to extend the reach of a service and strengthen its utility. Transformational services apply the principles of mobility to fundamentally reinvent the ways in which services are delivered and consumed. Figure 2: Illustrates the service classification for the four MVAS categories

About Netxcell

Netxcell Limited
“Netxcell Limited is a pioneer in developing niche products & comprehensive solutions in the mobile space for Telco’s, System Integrators and Enterprises”
It is an ISO 9001 2008 certified company which was duly integrated in the year 2000. Netxcell undertake product development for customer specifications, offering cutting-edge technology solutions that are already being used by leading cellular service providers in India and abroad. Netxcell’s strategy is to serve the clients better, by investing in the core capabilities based on market analysis, client needs and industry trends.
Netxcell has been working with Operators, System Integrators and Enterprises to provide various Technological Solutions on different platforms – USSD, SMS, MMS, WEB, WAP, Video and Voice.
Their major client and partners include Aircel, Airtel, BSNL, DoCoMo, Ericsson, and Wipro to name a few. Apart from India they have their presence felt in Africa and Mauritius and Kenya.
Netxcell is a part of the Prathima Group of industries, Andhra Pradesh, India. The Prathima Group began in 1990; Founded by Dr. Prabhakar Rao Guniganti, an established and highly successful cardiologist based in USA, Prathima Group has seen a phenomenal growth over the years under his able leadership. Dr. Prabhakar Rao Guniganti has been Founder Chairman of Prathima Group since its inception. Two plus decades later from a single sector, a single company, Prathima group is majorly working in Healthcare, education, telecom, hospitality and entertainment and real state and manufacturing sector.

NETXCELL PRODUCTS & SERVICES
Netxcell main operations are divided in to three categories: * Voice * Data * Messaging

VOICE:

The various products/services provided by Netxcell under Voice are: * Inbound Dialler * Outbound Dialler * Voice chat * Voice SMS * Insta alert – Area change alerts * Collect call solution – paying money for receiving calls * Talk time transfer * Pre call announcement

DATA: * Service LCM * Cell site mapping * Handset bundling offer * USSD gateway * Cell broadcast Centre (CBC) * CMS – Content management * Etopup * Greybox * CVPS * Customer Loyalty Program * Centralized consent gateway

MESSAGING: * Short Message Service Centre * SMS Gateway * Post Call Notification * Missed Call Alert

PROJECT TITLE: Market Research on “Business potential of Netxcell’s VAS services in South Asia” PROJECT SCOPE:

The Indian telecom Market is coming to a saturation level and it is one of the cheapest market in the world.
The awareness is high among the crowd here though the intense competition between the mobile operators here makes it a saturated market, where the year over year ARPU of paid VAS services has been decreasing. Operators harbour large numbers of inactive subscriptions and, as these are gradually stripped away, so a healthier picture of mobile ARPU development will emerge. However, reduced 2G voice and 3G data tariffs are undermining progress in this area. Spectrum wars also hinder the progress of the telecom market in India. Hence Netxcells plans to expand in international boundaries, would help the company to expand up their business in South Asia and in turn would enhance their revenue. It would also require to study various countries of South Asia having different market conditions on the basis of their demographics, geographic, economy and political situations etc. MARKET RESEARCH:

Market research is a key part of developing a marketing strategy. It’s about collecting information to give you an insight into your customers’ mind so that you understand what they want, how they gather information and where they come from. It also gives a better idea of market and industry trends. It builds the foundation of good business decisions whether it’s deciding what product or service to offer, where the business should be located, how to distribute the products or how to communicate with consumers. The market research done here is bade on a Secondary Research with a mixture of Quantitative and Qualitative Research Data. OBJECTIVES:

The main objective is to explore the Business potential for VAS services of Netxcell Limited in South Asia.
It would cover the following aspects in the research:

* Understanding the market offerings of different Countries in South Asia. * To understand the current services and offers present in the region. * To find and analyse the consumer buying behaviour in the regions * To understand the customer proliferation around the world. * ARPU (average revenue per user) of different countries in a region. * To analyse the Improvements in the products and services if necessary. * To find the bottlenecks and drivers for MVAS services in the region. Methodology and Process for Data Analysis: The market research done here is based on a Secondary Research with a mixture of Quantitative and Qualitative Research Data and the Data analysis process plan as below: * Netxcell -Current Position Analysis -Services and offerings -Products

* Country Analysis -Country wise- Telecom Market Overview -Region wise- Market Offerings to target market.

* Current Product and services Analysis -Region wise- Services scenario and network -Region wise- Existing Providers

* Consumer Behaviour Analysis -Region wise- Drivers for VAS services

* Operator Analysis -SWOT Analysis -Region wise- No of clients -Region wise- Age - Operating since -Region wise - Type of subscriber base

* Recommendations -Target Service offerings -Potential Opportunities

For Country wise assessment we are going to use the following is a sampling of the types of secondary data and information commonly associated with MVAS market analysis: GDP (PPP) | GDP (NOMINAL) | POPULATION | MOBILE PENETRATION | ARPU (Average Revenue Per User) | SEX RATIO | TYPE OF CUSTOMER (PREPAID OR POSTPAID) | GROWTH OPPORTUNITIES | CURRENCY | CONVERSION RATE | Average Age Mobile User Population Group | LIFESTYLE | HDI | Per Capita Income | Technology Awareness |

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