This is also reflected in the kind of investments that we see in the sector. Getting a little more specific lets look at the M-VAS industry. (  I would like to attribute the following observations to a recent story in DNA Money http://www.dnaindia.com/report.asp?newsid=1238568 and One97 view of the industry )

Consolitation seems to be the key. A number of players in the VAS space are taking the merger and acquisition (M&A) route to expand their businesses. Experts believe the kind of money being raised by companies in the M-VAS space currently hints at a possible surge in mergers and acquisitions. A key indicator is the significant rise in the number of large quantum or Series B fundraising by mobile VAS companies.

The Indian M-VAS market is pegged at $400 million. It currently comprises well-connected players with good exposure in the industry. Companies that have been around since the last 7-8 years not only have gained momentum in terms of deployment, operator relationships etc, but also have the necessary management bandwidth that new entrants will lack. Such companies will be keen to take the M&A approach to absorb smaller companies.