The Mobile Value Added Services (Mobile VAS or MVAS) industry could be worth nearly a billion dollars (Rs 4560 crores) by the end of 2007, from its current size of Rs. 2850. These findings are a part of the “Mobile Value Added Services Report” jointly prepared by the Internet And Mobile Association of India (IAMAI) and IMRB International.
A break up of the total market size of Rs 2850 crores reveals that P2P (person to person) SMS or Text Messaging, continues to dominate the industry with Rs. 1140 crores, followed by Ringtones, including Caller Ring Back Tones (CRBT) at Rs 1026 crores; P2A (Person to Application) and A2P (Application to Person) at Rs 428 crores; Games and Data at Rs 171 crores and others (MMS etc) at Rs 86 crores.
The P2P SMS revenue is accrued completely to the telecom operators. The remaining MVAS revenues are distributed among content owners, developers and the telecom operators on a revenue sharing basis.
In the case of MVAS (except P2P SMS) the revenue sharing arrangement is heavily in favour of telecom operators. This model is significantly different from more developed markets such as China where typically the operators are entitled to 20-30% only. In the case of enterprise solution services the revenue share arrangement between operator and short code owner is typically 70% and 30% respectively.
Link : Mobile Value Added Services in India 2007- Report
Source: Internet & Mobile Association of India
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here’s my take
http://witopia.blogspot.com/2007/01/mobile-vas-numbers.html