India's Rural Value-Added Services Market Could be Worth $835 Million in 2014

[Satellite TODAY Insider 10-05-10] India’s rural value-added services market could generate about $835 million for regional service providers in 2014, according global telecoms, media and IT adviser Analysys Mason.
    In an Oct. 4 report, Analysys Mason Principal Consultant Sourabh Kaushal said that if India’s mobile subscriber base continues to build off of its contributed 42 percent net mobile subscriber growth from April 2009 to March 2010, Indian value-added services could reach as many as 70 percent of the country’s households by 2014.
    “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,” said Kaushal. “Agriculture, for example, is relied upon by 75 percent of the rural population in India. 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 $100 to $4,000 per harvest”
    Kaushal noted, however, that the market does present a challenge, as India’s rural service usage remains voice-focused, resulting in what could be seen as a poor business case for operators. “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 customized to the needs of the rural population.”

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India’s Rural Value-Added Services Market Could be Worth $835 Million in 2014

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