More lies and fantasies..

Business Standard and The Hindu carried an article on July 7, 2006 about mobile content revenues in India touching $5 bn in the next 2 years. The figures come from the ‘second international conference on VAS’ held in Delhi (?). The article makes vague references to contextual applications like “advertisers projecting ads at the right moment in entertainment videos” and “cultural marketing” as possible drivers for this stupendous spurt in revenues from the current sub $10 million levels.

I agree that positive spin is necessary in every growth industry. But these numbers are in the realm of fantasy. I’m tempted to ask what the person who quoted these numbers was smoking when he dreamt them up? As mentioned in a previous blog, grossly false numbers are a big issue plaguing India’s mobile VAS industry. I think in the long run, this blatant inflation and false projection will hurt industry players where its really painful. One can foresee a scenario where investors become extremely wary of putting in the money for innovation and infrastructure, which are vital to spur legitimate growth in Mobile VAS sector. Yes, mobile VAS is growing in India and will eventually be a major revenue generator. However, the industry need to be realistic about time frames for this. Here’s hoping that some sense prevails and business writers do a sanity check before publishing articles with blatantly false growth stories.

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About Deepak
Venture Capital and M&A advisor, Entrepreneur, Startup enthusiast..

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