According to the recent analytical study 'Indian Telecom Analysis (2008-2012)' by RNCOS, the value-added services (VAS) estimated to reach over Rs. 16,500 crore by 2010. Among various other VAS, music and gaming are going to be the major driving forces boosting revenue and growth of telecom sector in India.

The research also found that the pressure on profits and revenues has forced operators to look at other avenues using the same platform. In this regard, MVAS has an immense potential to grow as services like mobile banking, mobile commerce and mobile location based services, it added. Hence, companies are adopting various promotional policies by offering several schemes in order to attract customers.

According to the report, the mobile VAS has been expanding to rural areas where more VAS in banking, gaming data and TV segments will be seen. This will further improve the profit margins of the service providers over the current SMS VAS.

Moreover, with 3G mobile services set to rollout in India, service providers would increasingly bank upon the VAS segment to bring in additional revenues. Hence, wireless teleconferencing, multi-player online games, m-commerce and larger screen-sized videos will gain momentum too.

Strong growth in the subscriber base of the telecom sector is also taking the business of mobile VAS to new heights in the country.