With one of the major facts that India is know the leading market for the mobile operators, mobile network operators are trying to fetch the most of the client base in Indian market. The rate of addition of new subscribers, reduction in call rates, and success of interactive SMS services all point towards a high prospect for more Value added services offered by wireless network operators. However, there are significant challenges which wireless network operators face in this process which includes lack of infrastructure; gaps in piracy protection, lack of transparency in revenue sharing, and rigid focus on only one sub-segment remain. In such a scenario, there are many ways in which a Mobile Network Operators can fail.
Mobile phones are becoming one of the most important need of the individual himself and making phone calls is seen by many as just one of its utilities. Customers are increasingly making use of other services offered by wireless network operators such as messaging, gaming, browsing, receiving stock information and cricket scores. More and more mobile carriers have started catering such Value-added Services (VAS) and are coming up with new and innovative offerings. However, the Indian context presents several challenges both regulatory and in terms of customer preferences. Proper understandings of these are needed for any mobile carriers that want to enter this space.
The growth in Value added services in India is being helped both by macro factors and by new market initiatives. High growth rates have led to higher disposable incomes, and people are ready to accept new technologies and thus are willing to spend more on services offered by mobile carriers. Just to have an understanding about these services, Ring tones are now associated with the personality status so the young generation is keener to avail such features. Coupled with a reduction in call rates and new regulatory initiatives for lower costs of basic services, many more mobile carriers are entering the List of mobile network operators.
Some major challenges that need immediate attention of key stakeholders are the limited youth focused market, entertainment heavy content, lacunae in piracy protection for content companies, lack of infrastructure, pre-dominance of low cost handsets and high cost of services.
