China and Russia are investing on 4G technology, and India and Brazil are boosting their 3G services for MVAS
The telecom industry in BRIC countries are embracing 4G technologies, and continuing other technologies to provide efficient mobile value added services (MVAS) and enhanced mobile user experience to their customers, according to BRICdata report. The BRIC countries include Brazil, Russia, India and China.
Though SMS-based services dominate Brazilian mobile data market, there is considerable growth potential for mobile TV, video and gaming services. However, costs of devices inflated due to high import duties are hampering the growth of data services.
According to the report, the potential drivers that could help Brazil increase market share in MVAS include social networking leading to mobile internet uptake; new SMS-based MVASs launched by operators to gain additional data and increase the ARPU; and adoption of the integrated services digital broadcasting-terrestrial (ISDB-T) standard.
The other drivers are collaboration of mobile operators with credit card companies to launch mobile payment credit cards; the Brazilian Ministry of Health’s collaboration with various organizations to identify mobile technologies to aid in the provision of healthcare facilities to remote and rural areas; and growing participation of local manufactures to produce tablets.
The report found, in Russia, the growth of MVAS is restricted to major cities such as Moscow and St Petersburg, despite the strong growth rate of mobile data market, especially in the mobile TV, gaming and payments sectors.
The growth drivers for MVAS in Russia include popularity of 3G services, operators conducting 4G trials, using long-term evolution (LTE) technology; popularity of location-based services (LBSs), growth of mobile gaming industry; and significant investments in their mobile payment services by operators.
Having one of the highest growth rates among emerging markets, the Indian telecom industry is weakened by limited data service adoption due to a large prepaid subscriber base, low wireless Internet penetration and a lack of 3G enabled smartphones, the report said.
One of the lowest call tariffs globally; lack of an established mobile payments platform, with functionalities limited to money transfer and bill payments; and a low literacy rate could restrict the growth of the Indian MVAS market.
On the flip side, the report indicated the launch of 3G has increased the use of music streaming services, mobile TV and motion sensor gaming; mobile healthcare and education services are expected to grow with government support; and the rural Indian market presents significant growth opportunities.
In China operators are investing in 3G and 4G technologies, including low-cost 3G-enabled smartphones.
Factors that would power MVAS growth in China include operators launching smartphone platforms to meet consumer demand; significant growth in services such as mobile TV, LBSs and mobile commerce; and growing market for subscription-based music services that would allow users to access unlimited music streams for a monthly charge.
Other factors for the MVAS growth are domination of mobile gaming market by social and casual gaming; launching of mobile payment services by almost all operators; and increased participation of international companies in the Chinese MVAS market.
The report cautioned that a lack of m-commerce infrastructure and regulations regarding paid Android apps would be detrimental to the growth of MVAS market in China.
The full report ‘Strategies for Increasing Share in the Mobile Value Added Service Market in BRIC Countries’ is available from BRICdata. Click here for more details.