Mobile value added service

Mobile value added services market is expected cross 12,000 crore in 2009.Current Mobile VAS industry is estimated at Rs. 5780 crore.To Grow 70% YOY to Rs. 9760 crores by end June 2009 & Rs.16520 crores by end June 2010.MVAS currently contributes around 9 % to the operator’s revenue.It is expected to increase to 10.4 % in the next 1 year and 12% by June 2010. 


Tanla Solutions

Tanla Solutions, predominantly a network aggregator in the mobile value added services (MVAS) space.An integrated play in the mobile billing and value added services catering largely to top mobile operators in the UK and Ireland, synergies from the acquisition of Openbit and an expanding domestic presence are key business drivers for Tanla. Content aggregators typically enable content from music companies, websites and entertainment companies to be made available in a downloadable format on mobile phones.

Tanla has end-to-end offerings in the mobile value added services segment, with network aggregation, product offerings and professional services. The company derives 78 per cent of its revenues from the network aggregation services. Its top clients are leading European mobile operators such as O2, Orange and Vodafone, all pan-European players, thus enabling Tanla to expand its footprint.

Tanla Solutions offers end-to-end mobile commerce, mobile entertainment, mobile internet and mobile advertising solutions and works in partnership with some of the top telecom operators worldwide such as MTN, Vodafone, O2, T-Mobile and Airtel among others. It has subsidiaries and offices in the UK, Singapore, Ireland, US, Dubai, Malaysia, Srilanka, South Africa, Spain and 
Finland.

Tanla Solutions’ acquisition of Openbit gives it a clear edge in terms of enhancing its offering in the on-device mobile payment segment. It could also help Tanla expand operations in new regions and create a sustainable revenue stream.

The acquisition holds several positives for Tanla. Openbit has strong tie-ups with players such Nokia and has its software products installed in 20 million Nokia phones. This deal can help Openbit extend its relationship with Nokia in countries such as China and India, where mobile subscribers are being added at 8 million a month.




Recent News:

Tanla Solutions, a telecom infrastructure provider, has partnered with Mahanagar Telephone Nigam (MTNL) to roll out third generation (3G) value added services in New Delhi. Tanla‘s 3G VAS platform enables a number of Video based interactive applications like Video IVR Portals, Video Chat, Video SMS and Video alerts. This enables mobile operators and service providers to enhance portal offerings with feature-rich, personalized video interactivity.

Tanla Solutions is forming a 50:50 joint venture with Spanish mobile value-added services provider Zed Worldwide to develop and sell mobile content. The proposed JV will also provide mobile advertising and related services to telecom operators in India. It would entail initial investments of Rs 63 crore in the paid up capital. Both the partners will contribute Rs 31.5 crore each for the venture.

Financials:

The firm which had sales of Rs 460 crore in 2007-08, generates 95% of its revenues from the overseas markets. It expects share of domestic market to grow to 15-20% in the next two years.


Three months ended Dec 31

(Versus the same period a year earlier, in million)

Net Profit 439.50 vs 432.70

Total Income 1,681.95 vs 1,240.34

Results are consolidated



Year 2009

High : 93.95

Low : 21.2 

Face Value: 1

EPS :1.70 (Last Qtr)

CMP : 29.50

It will give good returns for long term investors who can hold it for 2-5 years.