Welcome Guest Login | Register | Site Map | | Make TelecomTiger my homepage     
Telecom News
Enterprise |  Policy & Regulation |  Mobiles & Tabs |  Corporate |  VAS |  People Movement  |  Technology  |  LTE



Mobile TV is a distant dream in India

Arvind Rao
CEO, OnMobile
  TT Bureau |  New Delhi | 06/02/2008

Infosys incubated OnMobile has sailed through turbulent markets. Its IPO was subscribed 10.95 times. The success of OnMobile IPO is a great success for VAS industry. This reaffirms investor faith in the telecom sector and in the Value added Service segment. In an interview with TelecomTIGER, the CEO of OnMobile Mr Arvind Rao shared his views on various issues related to VAS and on OnMobile IPO. Excerpts:


TT: Your share was priced (Rs 450 at upper end of the price band) at 44 times its estimated current year earnings. Isn’t it a very high price?


AR: OnMobile is a growth story. Any growth company is valued on the basis of its fundamentals and future revenues. The current price is only 22 times the projected earnings in the FY 2008-09 and 12-13 times the projected revenues in 2009-10. Therefore, I think that the IPO price was very reasonable.


TT: Why are the revenues from VAS are very low in India?


AR: I do not think VAS revenues in India are very low. For example, in the case of Reliance and Bharti Airtel, VAS revenue is anywhere between 8% and 10% of the total revenue. This may look small in comparision to Japan and Korea where VAS contributes between 255 and 30 of the total revenues of telcos. However, the rest of the world is below 5%. Therefore, India’s performance in VAS is not bad.


TT: What is your market share in India?


AR: In India, OnMobile has a revenue share of between 35% and 45%. The industry is very new and its association is also very new. Therefore, we do not have exact numbers.


TT: What is the total VAS market size in India?


AR: According to industry estimates, the total VAS market size was close to Rs 4,500 crore in 2007. It is growing at between 30% and 40% pr annum. This growth is expected to continue in coming months.


TT: Now that your IPO is a great success, what will you do with the funds?


AR: We will expand our operations- both in India and in overseas markets. We will expand our team in India. We will offer more services. We will also go to Overseas markets to cater needs of their telcos. We will also offer them a number of services.


TT: What is your opinion on Mobile TV?


AR: I am not very bullish on Mobile TV in near terms. First, the size of screen is very small. You need a magnifying glass to see what is happening on the screen. Then most of the handsets are not supportive of it.


Operators will have to make a lot of investments in this segment to make it successful. Therefore, I do not see any huge revenue potential from it in near future.


 mail this article    print this article    Show and Post Comment
Maintain Business Continuity with Cisco ASR 9000 nV Technology
It is a virtual chassis solution where a pair of ASR 9000 routers acts as a single device by maintaining a single contr...read more
Simplify Your Network with Cisco ASR 9000 nV Technology
With the new Cisco Network Virtualization (nV) technology in the Cisco ASR 9000 Series Aggregation Services Routers, se...read more
Cisco Small Cell Solution: Reduce Costs, Improve Coverage
It is designed to address the challenge of mobile service coverage and to expand network capacity...read more
Other interviews
Kirusa’s newly launched InstaVoice ReachMe app provides unique telephony experience for users
95%+of the products delivered today by iVOOMi is made in India
A large proportion of our product and solution portfolio is directly relevant to 5G networks
RS Sharma on the status of Digital India
Cloud telephony is the best suited medium to reach out to the masses
"Smartphones have an integral part to play in the connected world of future"
“Domestic (Indian) brands are taking a larger share of the market every month”
“I do not expect much impact on tariff for consumers”
“We would be focusing on LTE 4G solutions in 2014 in India”
“We will start rolling out 4G LTE services by end of this financial year”
After advent of LTE technological innovation is much more challenging
“Our green technology can reduce diesel consumption by 56%”
“We expect 3G revenue contribution to be at par or exceed 2G revenue”
"We are strengthening our service capabilities in India"
“We partner with right technology and utilize our competitive advantage”
Indian VAS market is huge and effectively receptive
We are looking at growth in India
3G, 4G to fuel MVAS growth
Introduction of data plans at the right price and packaging key to growth
Smartphones will be major catalyst for mobile advertising growth in India
Despite challenges VAS market will continue to grow in India
Indo-US defense ties have created opportunities for T&M industry
3G penetration will help expand VAS market in India
ZTE has formed an enterprise solutions team for enterprise business in India
Telecom operators are looking forward to deploy green wireless solutions
Our value proposition to hotels has been well accepted
Effective mobile campaign management can boost operator’s business
Interpreting and analyzing data is vital for successful business
Unified Communications is transforming India Inc
Bill shock makes 90% Indians switch off data connection
LTE will ensure lower capital investment
'We need to come quickly to LTE': J S Sarma
'Corporate war fueling 2G controversy:’ A Raja
Ruckus Wireless’ WBA solution promises cost effective alternative to WiMAX in urban areas
Mobile data services the new opportunity for Indian operators to increase ARPU feels Comverse
Capgemini foresees huge scope for engagement with Indian Mobile Operators to drive Rural uptake
“Waiting for competition to tap the $ 150 mn agri-info MVAS market along with us”: RML
“Already serving more than 657 mn ad displays monthly in India over mobile web”: Admob
“Our international reach will be our main differentiator for mobile financial services,” says Roamware
Sterlite Technologies plans multi-fold organic growth to break into the global top league
Entry of 3G will make Broadband Services more appealing in India, says NSN
Picocell as a tool for Customer Retention, the ip.access way
WiMAX not a 4G technology, only LTE is, says Ericsson CTO
No business case for WiMAX in rural India….definitely not, says Qualcomm India
Delta carving out differentiation around Green Quotient of its telecom site power solutions
TI’s new chip makes way for Smaller, Denser, Cost-effective wireless base station design
Qualcomm India: “Well-positioned to serve both GSM & CDMA operators for 3G migration”
UTStarcom: IPTV far more relevant technology to India than any other market in the world
“Decision to foray into CDMA space is with an eye on data services” says Sistema Shyam’s CEO
‘Fixedline infrastructure can never deliver broadband across India’ says GSMA Director
Loop Mobile: Engaging and then exciting our subscribers is the core focus of all our communication initiatives
With voice being commoditised, SMS set to assume greater role, foresees Tekelec
"The race is still anybody's to win in the mobile browser market," declares BOLT
“WiMAX has seen very good traction and adoption in India”, says Tata Elxsi
“.tel is the biggest innovation in the internet”
India’s largest mall on your mobile: ngpay
Economic slowdown has no impact on Airtel, says Akhil Gupta
Synchronica fully supports legal interception unlike RIM, says CEO
Motorola says uniquely positioned to best serve critical technology demands of enterprises in India
Tandberg: Real value of video-conferencing solution should be measured on usability and benefits
DTH, WiMAX and Billing to be new focus areas for Oracle India
Wireline Services will bounce back, says Chairman MRO-TEK
Motorola well-positioned to play a major role in India’s next phase of growth, says Mohanty
Aircel will double its network by 2008 end
‘We are migrating to full IP Network’, says MTNL director (technical) Kuldip Singh
Sistema will offer competitive tariff, Mobile TV in India
IT & BPO growth story will continue
Redefining rules of the game