TRAI to script VAS norms
After voice services, telecom regulator TRAI has now decided to lay down regulations for value-added services (VAS).
By TNN |
NEW DELHI: After voice services, telecom regulator TRAI has now decided to lay down regulations for value-added services (VAS). Presently, the VAS providers are neither regulated nor licensed and mainly they act as channel partners of telecom operator, who by virtue of being owners of the network have near monopolistic advantage. All telecom services other than voice, which include SMS, music, entertainment, mobile commerce, GPRS amongst others are classified as VAS applications.
The move has been welcomed by VAS operators who have constantly alleged that telcos failed to share revenues with them, and had been demanding that the regulator set up a framework for a revenue sharing system where the providers, aggregators and owners of the content do get their due share in a transparent manner.
The TRAI move will also imply that VAS providers will be brought under a licensing regime. Justifying its move to intervene in this segment, TRAI said that the VAS industry in India is at nascent stage and does not have a proper process or common benchmark or code of practice, while also adding that the sector lacked transparency.
Besides, TRAI has also pointed out that regulation will help address a host of concerns associated with mobile commerce services such as mobile banking, mobile payments and money transfers through the mobile.
The guidelines will also be extended to monitor VAS content. At present, about 10%-14% of the telcos��� total revenues come from VAS. With telcos now shifting their focus towards other high-end VAS applications, non-voice revenues are expected to cross 30% of the operators��� total revenues in the next 5-7 years.
The move has been welcomed by VAS operators who have constantly alleged that telcos failed to share revenues with them, and had been demanding that the regulator set up a framework for a revenue sharing system where the providers, aggregators and owners of the content do get their due share in a transparent manner.
The TRAI move will also imply that VAS providers will be brought under a licensing regime. Justifying its move to intervene in this segment, TRAI said that the VAS industry in India is at nascent stage and does not have a proper process or common benchmark or code of practice, while also adding that the sector lacked transparency.
Besides, TRAI has also pointed out that regulation will help address a host of concerns associated with mobile commerce services such as mobile banking, mobile payments and money transfers through the mobile.
The guidelines will also be extended to monitor VAS content. At present, about 10%-14% of the telcos��� total revenues come from VAS. With telcos now shifting their focus towards other high-end VAS applications, non-voice revenues are expected to cross 30% of the operators��� total revenues in the next 5-7 years.
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