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Indians demand more VAS than Global Counterparts

KPMG has come up with a report that says -Indians are more willing to experiment with value-added services, including chatting, video gaming and watching live TV on mobile phones, as compared to their global counterparts.
Asian consumers, including those in India, seem the most willing to use their mobile phones for purchasing music, video games, and watching live TV, followed by the Middle East and Africa and Latin America, global consulting firm KPMG’s ‘Consumers and Convergence III’ global survey found.

However, the developed-market consumers of Europe and North America are apparently less willing.
The survey revealed that there exists a huge potential for mobile chat services, video gaming on mobile and watching live TV on mobile in India.

Globally, 18 per cent of respondents were very likely to use a mobile chat service in the next 6-12 months as against 34 per cent in India, showing growing demand for such services.

The survey revealed as much as 95 per cent Indian consumers were satisfied with their music-download experience on mobile phones as against 66 per cent respondents globally.

“While mobile additions exceed 10 million a month, average revenue per user’s (ARPU) continue to drop. Telecom players recognize rise in VAS revenues will be a key aspect of future growth and profitability,” KPMG India Head of information, communication & entertainment Rajesh Jain said.

About 86 per cent respondents in the country and in China indicated likelihood of watching live TV on mobile phones in the next 12 months, the survey added.

Players in value chain are innovating and focusing on the increasing market size for their products and services, Jain added.
KPMG surveyed over 4,000 consumers in 19 countries world wide, in order to understand the future for the market, revealing global trends and some regional differences.

In India, although the user-base of mobile gaming is smaller, a substantially higher proportion of 63 per cent was satisfied with the service, which reflects gaining acceptance and opportunity for mobile gaming companies as the segment moves beyond the early adopters.

Meanwhile, m-commerce applications continue to face challenges for gaining wider acceptance in the country.
KPMG’s survey revealed that there exists a huge potential for banks to grow their market with mobile phone users, as globally 53 per cent of consumers said they are comfortable with the idea of using a mobile phone for financial transactions.
About 64 per cent of Indian’s surveyed stated that they are “at least somewhat likely” to conduct banking through a mobile device in the next 12 months.

Further, 93 per cent respondents said clear pricing and 94 per cent felt download speed as an influencing factor for the purchase of video clips and mobile TV.