1. Build the most exciting brand of the next decade
VAS : Trigger to new revenue stream
& service differentiation
Krishna Basudevan (Aircel)
Ranjith Mukundan (Wipro)
23rd September, 2009

2. State of VAS market
….key points to ponder
How is technology
To what extent is mobile
adoption shaping
broadband shaping
operator strategies with
growth in the wireless
regards to the VAS
data market?
market ?
Which value added
How is the use of smart services have been
phones contributing to successful in terms of
greater VAS traffic? revenue streams or as
retention tools?
What are the growth drivers for this market?
2

3. VAS-led Transformation:
from a Network Operator to a Service Provider
to be a market leader in
 Few Cash Cow Services  VAS/content lead era
Large number of
Services
 Long and Costly Service  Short and low budget
Design and Deploy Design and Deploy
Cycles Cycles
 Exploit all network
 Relied on Limited capabilities
network capabilities  Flip the business model
– exploit the content on
 IN Based Service Layer, the internet
Silo Applications  Leverage
innovativeness of 3rd
parties
3

4. Aircel VAS Innovation– Key attributes
Focus Areas Organization
Transformation
Network
3rd Party
Enablers
Ecosystem
Ongoing
Application SOA Based
Innovation Center – Architecture for
Concept to Integrating
Commercialization Applications
Roadmap
4

5. VAS Innovation – enabling 3rd party ecosystem
Idea for a Monitor Usage
new Service Encourage High Runners
3rd Party Applications
(Kill non-performers)
request for hosting
Common Data Center
for Application Rollout
Quick Prototyping
For Proof of Concept
Alpha Trials by Engineer the Solution Small Scale Deployment
In-house Users For Robustness and Beta Trials

6. VAS-led Innovation
- Solving the Innovators Dilemma
Not all ideas can be rolled out commercially
Each idea has the potential to become “Killer App”
Need the process and mechanism to test and exploit
Ideas! every Idea – Don’t Miss That Idea!! Commercial
Deployment
I have an idea! Build your first prototype Engineering and scale-up
of prototype Production and
Where do I start? Inventory
Apply for IPR
Complete Market Study Management Plan
Assessing your idea Continue to build your
marketing and business Certification Implementation of
How will I profit from plan Commercialization
my idea? Business Model and and Marketing Plan
Is my proof of concept Marketing Strategy
successful? WINNER!!
Apply for funding for What is my next idea?
Proof of Concept Secure financing for
Secure further financing Commercialization
6 (R&D) for Product Development

7. Learning from the Internet world:
typical Innovation Cycle Facts and Figures
Number
of Ideas
100
85
CAPEX
FOR 30
SERVICE 15% 20% 30% 35% 15
20
ROLLOUT
Timeline
Few Few Few Few
Weeks Weeks Months Quarters
7

8. VAS market in India
Source: IMRB
Market size – Rs 9760+ crores (2009), Rs 16520 crores (2010 projected)
MVAS currently contributes
around 10% to the operator’s
revenue. It is expected to
increase to 12% by June 2010
Continuous decline in voice-led ARPU; need VAS-led data services to
boost ARPU 8

9. Aircel – Leading the way
AIRCEL is a joint venture of Maxis group, Malaysia and
Apollo Hospitals Group, India. Maxis holds 74% share in
AIRCEL.
Turnover of more than Rs.3000 Crores
Fastest Growing Telecom Company in India in 2007 & 2008
Market Leader in Four Circles - Chennai, Tamil Nadu, Assam
& North East and number 2 in J&K operation
Launched Pan India operations in April 2009. Currently
operational in 18 circles, covering all metros.
Crossed 24 Million subscribers as on date
Rated as best regional operator in Overall Mobile
Satisfaction Survey 2007 - IDC
First to Roll out 100% EDGE Enabled Network in India
(3G Technology)
9

10. VAS is a big strategy for gaining market share &
new revenue stream for Aircel
VAS & Data services as a differentiation than any other new operator
Aircel betting big on its VAS offerings like Location based services & phone banking to
attract subscribers in metros
10

11. VAS Strategy Realization via
Aircel-Wipro SDP
Program Governance
11

12. Way Forward –
Emerging Service Paradigms
Customer status based services
Use the customer status such as presence, profile,
location, and personal preferences as a enabler for
services and applications
Private customer networks as a service
The ability to provide a networking capability between
multiple customer assets at home and office, and offer
programmability of the operator network to the home user
Context based content
Ability to leverage context like where the customer is,
what the customer is doing, what the habits of the
customers are, in providing, gaming, music,
information, maps, points of interest etc
Infrastructure as a service
Ability to apply the concept of data center, storage
virtualization for enterprises and end users.
Verticalized services using M2M
Ability to extend wide area wireless services to devices,
gadgets, and embedded devices that can enable
wireless communication to non-human subscribers like
vehicles, pets, farm animals, surveillance and medical
devices.
12

13. Touching the Life of People
Innovation
9/25/2009 Building the brand 13

14. Touching the Life of People
Innovation……
9/25/2009 Building the brand 14

15. Thank you
Krishna Basudevan (Aircel)
Ranjith Mukundan (Wipro)