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Our Bureau

SMS still the top revenue earner followed by ringtones

New Delhi , Jan. 2

The value added services (VAS) for cellular segment could be worth nearly a billion dollar (Rs 4,560 crore) by the end of 2007, from its current size of Rs 2,850 crore according to Mobile Value Added Services Report jointly prepared by the Internet and Mobile Association of India (IAMAI) and IMRB International.

A break-up of the current market size of Rs 2,850 crore reveals that SMS or text messaging continues to dominate the industry with Rs 1,140 crore, followed by ringtones, including caller ring back tones at Rs 1,026 crore. Games and data related application are at Rs 171 crore and rest such as MMS at Rs 86 crore.

Revenue Sharing

The IAMAI said that the revenue sharing for VAS is heavily in favour of telecom operators.

"This model is significantly different from that in more developed markets such as China where typically the operators are entitled to 20-30 per cent only," said a press release.

Dr Subho Ray, President, IAMAI, said: "This is the first attempt at a market estimate for the industry and we are hopeful that the Government and industry will now look at the MVAS industry with the attention that is due to it."

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Mobile VAS market may touch $1 b

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