Current mVAS Scenario Ms. Reena Dongol (For Paper Presentation in CAN Info Tech 2014-5th January 2014) Presented by : Ms. Reena Dongol Deputy Manager, GSM Business, Nepal Telecom. Email ID: reena.dangol@ntc.net.np

Outlines Background of mVAS Types and Services mVAS Ecosystem mVAS Benefits Why mVAS in Telecom Market? VAS Licensing Regime in Nepal Nepal Telecom Case Scenario Differences between Current & Emerging VAS National Trend of Global Trend of mVAS Limitation /Challenges in mVAS The Way Forward…

Background of mVAS Traditional : Enhanced Services that Add Value to the Standard or Core Telco-Services like Voice Calls and Fax Transmission Call Waiting, Call Forwarding, Multi Party Conferencing, Voice Mail, Email, SMS, MMS etc. Modern : All kinds of Content and Applications provided on Telco Network apart from Traditional Value Added Services Information Based CRBT,MCA, Contest, m-Learning, m-Governance, m-Health , m-Commerce, Social Networking etc.

mVAS Types & Services Mobile Backup Entertainment (Wall paper, Horoscope, Jokes, life style, News, games) IVVR Messaging (push-pull service ), Mobile Commerce(Mobile Banking, Utility bill payment via mobile) Advanced Network Services( Call Block, Missed call Alert, Pay for me, Balance Transfer) Mobile CRBT(Ringtone, Songs download) Multimedia(video download, Mobile TV, Songs), Conferencing and Collaboration Public Safety(different kinds of information provided by VAS operators) Video Conference(Video Call ) Voice SMS( Voice Chat) M- Agriculture, M- Governance, M-Health, M-Marketing etc.

mVAS Ecosystem -In reference to TRAI doc

mVAS Benefits Telecom Service Provider Key Role in delivering information, better situational awareness in disasters, infrastructure planning and national development Company /its Product Branding Customer Retention Growth in Revenue without much effort Customer Comfortable Lifestyle Updated to Latest Happenings Best Value for Price Easy Access, no hassle

mVAS Benefits Content Provider/Application Providers/ Mobile Advertiser Aggregator Technology Enabler Handset Manufacturer Source of Profitable Business Opportunity for National Contribution Best platform for Market Presence Growing Trend

Why mVAS in Telecom Market? Not a main business Huge Competition in Telecom Business Growing Customers demand Biggest Challenges to Telecom Operator Customer Churn Revenue Loss mVAS best fit for current survival Customer retention Attraction to customer Helps in Revenue growth No extra effort to Telecom Operator Bearer Channel Only

mVAS Licensing Regime Telecom Operator Need Telecom Authority Regulatory Body for VAS Licensing Regime Telecom Authority/Regulatory Body can Helps in National Social-Economy Development Control the mVAS Market Reduce Institutional Conflict Quick in Adaptation of Innovative Application Services Bring about Social Security, Timely Awareness Gain Respect from the Citizens

Nepal Telecom Case Scenario – mVAS Bearer Channels SMS based push-pull VAS [ Mostly Used ] USSD [ Recently Started] IVRs [ Can be most useful in case of Nepal, only open for few Service Providers ] WAP Based [Can be useful as there are 6.2 M GPRS users in Nepal ] CRBT [Mostly Used]

NT Case Scenario Selection of mVAS Service Providers Selection by Telco Operator under the guidance of its board decisions Method of mVAS Service Provider Selection Tendering (dated BS 2063 Shrawan- AD July 2007) Beauty Contest (from BS 2066 Chaitra- AD March 2010) Innovative VAS Access, Awareness, Affordable Easy and Comfortable Lifestyle Addresses Necessity of Subscribers Retention of Subscribers Reduce Time-To-Market Attractive Business Model Technical Viability No charges on short codes

Nepal Telecom Case Scenario Selection of mVAS Service Providers- contd. Service Approval from NT Management Provisional Period (mostly 6 months) Contract Period (mostly 1 year) Renewal (mostly in yearly basis) Tariff and Short Codes approved from NTA Connectivity charges (set defined charges from July 14th 2013) Evaluation of Service prior to renewal of VAS License

Nepal Telecom Case Scenario- Year wise GSM Revenue

Nepal Telecom Case Scenario – mVAS Revenue 4M mVAS users including CRBT

Nepal Telecom Case Scenario – Existing mVAS mostly entertainment & SMS based SMS/ IVR Based Information Services Banking Quotes Love/ Friendship/ Hates etc Horoscope Sports Hospitals Digital Visiting Card Gender Violence Reporting Software SMS integration service / API Quiz / public opinion Voting/ Contest Mobile Finance Premium VAS (CRBT, News Alert, Voice Chat, MCA)

Emerging mVAS services- New age application with enhanced content and higher data usage SMS/ IVR/ USSD/ WAP/CRBT Based Gaming TeleVoting Chat Social Networking Local Language Voice Responses mHealth mGovernance mAgriculture mLearning mCommerce (enabler for mobile payment) Wall Paper True Tone and many more…

Nepal Telecom mVAS services- In Near Future (10M GSM Project) 20% 2G, 40% 3G Target for 5% Revenue in 2014 High speed data, Attractive data packages Contracted with few more VAS providers with innovative products USSD service in the process of operation Advancement in the handset, in the process of bundling with Android handset     Focus in marketing and awareness campaign program of mVAS services to  customers

Differences Between Current & Emerging mVAS

Global Trend of mVAS -In reference to TRAI doc

mVAS Limitations/ Challenges in Nepal Lack of Strong Regulatory Policies mVAS Licensing/ Renewal Tariff Charging for Resources Content Privacy Copyright Royalty Revenue Sharing Financial Transaction Performance Security Insurance Approval of Emerging Application Services

Limitations/ Challenges of mVAS in Nepal Handset that does not support Local language Bandwidth Limitation Traditional mVAS Existing TDM Telco Infrastructure Lack of Effective Marketing Lack of Content in Regional Level Costly Service due to low volume Lack of proper exposure Spam messages etc.

The Way Forward… Urgent Need for a CLEAR Policies and Regulatory Framework Identify Role Model Players in mVAS Ecosystem Educate End Users Access to Mass Market/ High Availability/ Affordable Services Encourage Growth of Local Application & Contents Monitor Growth in mVAS Revenue Survey/ Expose to Key Areas for Future Development Adapt to Emerging mVAS Periodic Review on mVAS Reduce Time-To-Market

Thank you…