Wednesday, May 09, 2007

Don’t pay for your calls...

Telecom companies, marketers, content providers and aggregators alike have realized this and are trying to reach out to conquer this relatively new terrain, but the road is tough. Anupam Mittal, CMD of People Group – Mauj Telecom, observes that as his company reaches the next level, “operational excellence, disruptive innovation and an unflinching focus on discovering customer needs is what we (Mauj Telecom) will need to distinguish ourselves.”

Entertainment hogs the limelight in the VAS space with P2P applications & ringtones attracting 75% of revenues. There are new, promising areas like mCommerce, which are yet to gain momentum. The low level of awareness, coupled with apprehensions of conducting transactions on mobile are the key reasons for the sluggish growth. The other prominent challenge that faces the industry at the moment is the revenue sharing mechanism in the industry between aggregator, copyright owner & operator. In fact, the discrepancy in revenue sharing is deterring lots of VCs from investing. With operators retaining the biggest chunk of revenues, the proposition of investing in content companies from the point of view of investors, becomes less & less lucrative.

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Source : IIPM Editorial, 2006

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