Cos offering VAS don't need licence: TRAI

NEW DELHI: Telecom regulator Trai on Wednesday said companies offering value-added services (VAS) can continue to operate without a licence.

The regulator has turned down the long pending demand of VAS companies that Trai interfere in the commercial agreements between the telcos and them. VAS companies believe that telcos pay a small sum for their services.

Except voice, all telecom services such as SMS, music, entertainment, mobile commerce and GPRS are classified as VAS applications. As per Trai figures, about 10-14% of telcos��� total revenues currently come from VAS.

With telcos are now shifting focus towards high-end VAS applications, non-voice revenues are expected to cross 30% of total revenues in 5-7 years. As per the Cellular Operators��� Association of India (COAI), the VAS services market is projected to be worth $10 billion by 2010. As against obtaining a licence, Trai has proposed that VAS register themselves with the government under a category called ���Other Service Provider (OSP) ��� Value Added Services���.