End-user service revenues from mobile data and VAS (value-added services) in India will grow from $3.9bn in 2011 to $15.9bn in 2016, according to research released this week by Informa Telecoms & Media. Mobile operators, content providers and technology vendors for mobile services have realized that they need to look beyond mobile entertainment services to grow their revenues and there is a visible shift towards using mobile to offer utility services such as mobile banking and payments, m-health, m-education, and m-governance. It is expected that the share of revenues generated by mobile utility services will increase from just four per cent of the total in 2011 to 18 per cent in 2016.

Google’s entry in the mobile phone hardware market with the acquisition of Motorola Mobility seems to be the outcome of the company’s desire to acquire the 17,000+ patents that Motorola holds and compete more effectively with Apple and other smartphone/OS vendors. The acquisition will however, not only have an impact on the handset market but possibly will also have a big impact on the mobile services market. In particular, this may help Google to accelerate the growth of the m-commerce market.

In terms of generating substantial revenues for value-chain participants, 2010 still won’t be the year of mobile advertising. However, we are now seeing increasing examples of successful mobile advertising campaigns and market activity including in-house innovation, partnerships, mergers and acquisitions. Media and FMCG brands are also experiencing growing consumer engagement on mobile and together these developments are starting to provide the much needed momentum the mobile advertising industry needs. This will no doubt lead to accelerated growth of mobile advertising in 2011 and beyond.