Rural value-added services in India present a revenue opportunity of USD835 million in 2014, says Analysys Mason

Value-added services for subscribers in India’s rural areas present a revenue opportunity of USD835 million for service providers in 2014, according to the latest report from global telecoms, media and IT adviser Analysys Mason (www.analysysmason.com).

The mobile subscriber base has increased significantly in rural India in the past few years. However, the usage remains voice-focused, resulting in a poor business case for operators. Mobile subscribers in rural India contributed to 42% of net mobile subscriber additions in India in FY2010 (April 2009 to March 2010).

“The addressable market for rural value-added services is as high as 70% of households in India,” says Sourabh Kaushal, Principal Consultant at Analysys Mason and author of the Overview of rural value-added services in India.

“However, adoption of these services remains low because of limited service awareness and operators’ focus on entertainment value-added services, which are of low utility and are available through alternative channels. Operators can address these issues by offering livelihood enhancement services in local languages, enabling easy service discovery (similar to one-key access to GPRS) and providing content customised to the needs of the rural population.”

Value-added services that address the livelihood and business needs of rural subscribers, such as healthcare and agriculture, have the potential to increase revenue from these subscribers. Such services would have a direct impact on the livelihood of rural households by providing them with relevant information and offering incremental earning opportunities. These services also offer better margins for service providers because of their large revenue potential and low opex.

“Agriculture, for example, is relied upon by 75% of the rural population in India,” says Kaushal, who also leads Analysys Mason’s India Value-Added Services research programme. “It is estimated that the benefits of accurate and timely information related to commodity prices, farming techniques and weather have led to farmers making additional profits ranging from USD100 to USD4000 per harvest”

For further information on the Overview of rural value-added services in India, please visit: http://www.analysysmason.com/Research/Content/Viewpoints/RDIH0_Rural_VAS_India_Sept2010/

Link to press release: http://www.analysysmason.com/About-Us/News/Press-releases/Value-added-services-present-a-revenue-opportunity-of-USD835-million-in-rural-India-in-2014/