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Started by : nakul , Relationship Manager, IDBI Bank Ltd   07 06 2010 02:08:02 +0000
Industry : Telecom/ISPFunctional Area : Valuation(Corporate Finance)
Keywords : profitability
Activity:  1 views;  last activity : 07 06 2010 20:18:09 +0000

 
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1 Profitability of VAS poviders
Ideas in: "Telecom Industry"

Profitability of VAS poviders

idea posted by nakul Relationship Manager, IDBI Bank Ltd

As the telecom industry is going through rough times ever seen. More competition and with opening up of market and adding more licensee the margins of the companies are dented.

The 3G auction is completed BWA auction is still going on.In this case how it will effect the VAS service provider's profitability. Because they work for 30:70 revenue sharing model in their favour, out of which around 15-20% goes to content provider or content aggregator.As the VAS industry is small and fragmented and no major company exist in India.

Does this 3G auction and increasing use of VAS help VAS service provider in negotiation on revenue sharing pattern, and in turn will it help to improve their profitability?

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