Mobile Phones Emerge as a Viable Medium for Providing Utility Services in South Asia, Finds Frost & Sullivan

Last Updated: Thu, Mar 21, 2013 12:20 hrs

Mumbai, Maharashtra, India:Rapid proliferation of mobile communication services has positioned itself as the ideal platform to provide people from all walks of life the access to utility services such as banking, healthcare and education. According to Frost & Sullivan, mobile utility service is still a fledgling market in the region but has impressive potential. Mobile data services explosion, innovative business models, as well as increasing smartphone and tablet PC penetration will give a leg up to the adoption of utility mobile applications across South Asia.

New analysis from Frost & Sullivan (, Mobile VAS: Utility Mobile Applications and Data Usage in South Asia, finds that the market earned revenues of $0.28 billion in 2011. This is estimated to reach $4.88 billion in 2018 at a compound annual growth rate (CAGR) of 50.3 percent. Mobile commerce is expected to experience the highest adoption rates and grow at a CAGR of 55.9 percent, followed by the mobile healthcare and education services.

“Operators have developed many utility services for the segments of education, commerce, banking and finance, and healthcare,” said the Frost & Sullivan Research Analyst. “However the adoption has been very low. Operators are struggling to package these services in a format which will make them accessible to all. Telecom companies are also concerned about return on investments for services tailored for the Bottom of the Pyramid (BOP) consumers. High cost of the services and lack of vernacular support is hampering the end user adoption.”

Going forward, operators in South Asia must focus on both the feature phone and the smartphone owners. This will enable them to offer utility services on advanced as well as traditional channels such as SMS for maximum reach.

“It is vital to provide interactive voice response (IVR) based services for users that are disinclined to use SMS-based services or data services,” noted the analyst. “These efforts will go a long way in bolstering market prospects. By 2018, the utility mobile applications are expected to account for almost 7.6 percent of the overall operator revenues in South Asia.”

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Priya George / Akshata Mhatre, Corporate Communications, at /, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

Mobile VAS: Utility Mobile Applications and Data Usage in South Asia is part of the Mobile & Wireless Communications Growth Partnership Services program, which also includes research in the following markets: South Asia and Middle East Telecom Infrastructure Market, Mobile VAS in Emerging Markets, Fixed and Mobile Broadband Infrastructure in South Asia, Direct-to-Home (DTH) Market in India, Internet Protocol (IPTV) Market in India, and Mobile Infotainment and Communication Services and Data Usage in South Asia. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

-- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.

-- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion

Join Us: Join our community

Subscribe: Newsletter on “the next big thing"

Register: Gain access to visionary innovation

Mobile VAS: Utility Mobile Applications and Data Usage in South Asia

Akshata Mhatre, Corporate Communications – South Asia, Frost & Sullivan, +91 9867873010

More from Sify: