Mobility

Jun 29, 2006
BGM can boost ARPUs

• Cellebrum is Asia's leading integrated telecom VAS solutions provider;
• Voice-based VAS necessary to tap growing base of mobile subscribers;
• Background music is a value addition to mobile peer-to-peer calling;
• BGM has a tremendous potential to boost the falling ARPUs;
• Mobile VAS also includes voice-based services such as PTT and WDA;
• 3G is set to enter Indian Domains;
• Cellebrum is consolidating Pan India presence with operators.

NEW DELHI -- Mobile telephony and the Internet are growing and converging at a rapid pace. Today, wireless devices offer a flexible way to deliver content and conduct transactions to a very broad subscriber base in real time, wherever they are. Cellebrum is engaged in developing end-to-end technologies and solutions for the wireless Internet industry. It is involved in creating innovative applications that are the business drivers in an exploding mobile market where users of data and multimedia telecommunication services expect and demand these services be available to them while they are on the move. The company's solution offerings include value-added services to telecom operators for entertainment, music, gaming, religion, information or downloads, contributing to brand augmentation, increased customer involvement and retention.

Saket Agarwal, chief operating officer, Cellebrum, spoke with Convergence Plus on the changing face of value-added services in India. Excerpts from the interview.

Convergenec Plus: For how long has your company been in existence? What are its main activities?

Saket Agarwal: Cellebrum is Asia's leading integrated telecom VAS solutions provider, and a part of the MCorpGlobal group. We provide VAS solutions across platforms like SMS, IVRS, ASR, TTS, WAP, GPRS, USSD, etc. Cellebrum also has expertise in the fields of signaling, call processing, protocols and specifications.

With rich domain knowledge and a strength of above 200 people, qualified from institutes of national and international repute, Cellebrum is uniquely positioned as one of a few companies in Asia that is able to provide a full set of services and implementation skills for converging technologies, such as, telecom, mobile phones and the Internet (e-commerce).

Our vision is to be a technology enabler in a wire-free world connecting data source or application to any device and make the mobile phone an integrated communications device, with the ability to provide information and perform real time online transactions anytime... anywhere.

CP: What are the current value-added services offered by Cellebrum?

SA: Cellebrum has developed and deployed a wide range of product offerings on IVRS platform using DTMF/ASR/TTS technology. The bouquet of services span across the information, communication and entertainment domain and includes music, gaming, downloads and utility services with two to three new offerings added every month. The latest and differentiated offerings in the product line include Background Music, Pay-4-Me, Select Caller List, Missed Call Alert, International Call Back, Voice Mail System, Caller Ring Back Tone, etc.

In addition to this, we also provide a host of solutions aimed at helping the corporate to M-Enable their information and processes thereby bringing them closer to their customers and increase their work efficiency. A host of solutions like SMS gateway, Web2Mobile SMS, SMS 6300, global number solution, etc. are currently being offered by us.

CP: What are the key issues faced by telecom operators across the world? How are these affecting their revenues?

SA: World over, the key issue is rising minutes of usage (MoU) per subscriber, but the catch is falling ARPU's, which thereby translates into the current infrastructure operating at its maximum capacity and the pay back period for additional capex becoming too long. The root cause is that revenues from voice are falling due to an ever-decreasing tariff given the competition and regulatory mechanism, which is increasing the subscriber base and also usage, by the existing base.

So on one hand, the mandate to strengthen the infrastructure in terms of sites and switches is there but the revenue stream for the same is not there. So while increased MoU should be seen as a favorable input to the operator but since the tariff is on an ever-sliding spree so the actual realisation per call has gone down.

The answer to the same is more focus on VAS, which is proving itself with the slew of new launches almost every week by one or another operator, adding to the existing bouquet of VAS offerings.

CP: How do you see voice applications changing the business landscape?

SA: With the advent of technology, the handset penetration has gone on an upward spiral but the increased availability of the services in the rural/semi rural segment has caused a different segment of users joining the clan. These are those users who have got the mobile technology within their reach but are not tech savvy, which means that they are comfortable with voice usage.

So, in order to tap this ever-growing base of new comers to the mobile clan, voice-based VAS solutions is the only answer. Since the applications can be either ASR or DTMF-based in order to simplify the application, the ease with which the existing voice content can be adapted onto the handset is comparatively convenient. Also, it does add another dimension to access the same content thereby extending the reach and achieving convergence in true spirit.

CP: As a technology, what can BGM do for the telecom service providers? Do you have deployments in India?

SA: Background music or BGM is a value addition to mobile peer-to-peer calling wherein a subscriber can create his own ambience during a call by playing music in the background. This service is basically intended for the younger generation. BGM is a customised solution in which the call progress when answered is accompanied by music in the background. The caller can choose his music from a variety of sounds provided.

This solution is different from CRBT solution, where music is played before the call is connected. In BGM, music is played after call is connected. Technically, it is a conference service, which involves the calling party, called party and the music playing entity, which is also, part of the conference. This entity is responsible for playing back music during the conversation. The service provides user-based background music or scenario music for both parties during a conversation in an effect to give a better conversation atmosphere. BGM can be used without need of application, and a registered user can use the service in any way after it is applied.

BGM has a tremendous potential to boost the ARPUs of cellular operators due to the low cost at which it is being offered. A subscriber can choose upto three songs for a charge of Rs.15 per song. Over 170,000 mobile subscribers across the network of IDEA Cellular and Spice Telecom have tried using the BGM service. The service has been deployed at over 20 operator locations in India

CP: What are the recent trends in VAS?

SA: Back Ground Music, Music Download, Talking SMS, Ring tone downloads, Talking Alarms, Caller Ring Back Tones, Interactive services like Contests, Astrology, Dating, Cricket Updates, News, results, Chat, Games, etc.

Value-added services could be voice-based or SMS-based. The cellular mobile subscribers who have the GPRS subscription can also access VAS. Mobile VAS includes non-voice advanced messaging services such as SMS, MMS, MIM, and UM and wireless data services based on wireless data bearer technologies such as WLAN, GPRS, 1xRTT, WAP with VAS applications including mobile gaming. Mobile VAS also includes voice-based services such as PTT and WDA.

CP: What will be your marketing and investment strategies for the next 12 to 18 months?

SA: With a robust presence across voice and data domains, the focus areas are USSD and WAP/GPRS. This is a proactive move considering the fact that 3G is set to enter Indian domains, so the moment the same happens the products would up and live to be implemented. Also, we are consolidating our Pan-India presence with operators by enhancing the product portfolio on a constant basis so as to keep the customer delight factor in mind. Also, we would be making true convergence happen by having the products available across the bearers of VAS, SMS, WAP/GPRS so that whenever a subscriber thinks of a product it is there at his disposal on the move. Mobility in true sense of the word.