Understanding Dynamics in a Evolving Industry : Case of Mobile VAS in India

Analysing the future path of an uncertain industry is fraught with risk. We decided to do that. Mobile Value Added Services (VAS) is a rising star in the fast growing wireless business. The growth of this new industry has attracted a wide category of entities right from wireless operators to handset manufacturers to content developers. In this paper, we attempt at understanding the strategic dynamics of the evolving environment within which the Indian players are operating, the challenges and structure of the same. We also attempt to gain insights from relatively more mature VAS markets in other countries. Our literature and industry review indicates that - while the value chain of industry is complicated yet one can observe the bipolar nature of bargaining powers between mobile network operators and content aggregators. We observe the critical role of regulator. Though, the study is restricted to the telecom sector in India, the learning's are applicable to other similar evolving environments. Our probe into the fast changing technology makes us believe - 'The wired entertainment is dead; long live the wires, Welcome mobile entertainment'