MUMBAI: MediaTek Inc, a fabless semiconductor company for wireless communications and digital multimedia solutions, will be investing close to $20 million in Mobile Value Added Services (mVAS) player Spice Digital.

According to a recent study of Standard Chartered, India is set to become the fastest growing major economy in the world by 2012. It is also estimated to have more than 700 million mobile subscribers, with that number still increasing. In addition, market research states that the mVAS market in India will enjoy over 100% growth over 5 years and will constitute about 10% of total telecom revenue for Indian operators.

Spice Digital was incorporated in 2000 and has over 30 million subscribers. It offers solutions for telecom operators, enterprises, and government agencies using different mobile connectivity mediums of Voice, IVR, SMS, USSD, WAP, 3G & Mobile Applications.

MediaTek chairman Ming-Kai Tsai said, "The mobile Internet presents a wealth of opportunity for MediaTek and we believe India’s IVR and mVAS market, where Spice Digital’s core business lies, will continue to grow. Through this investment in Spice Digital, we are hoping to capitalize on its market potential and reinforce its strong operator relationship and leading position in India, SEA, Africa and Middle East."

Spice Global chariman Dr. Bhupendra Kumar Modi added, "India is already one of the fastest growing large economies in the world and has the potential to become the world’s largest economy. Mobile Internet can help India achieve double digit GDP growth rate and our businesses continue to lead the country’s move on the digital highway with mobile Internet. MediaTek is well known as a leading Mobile IC solutions provider. We are very excited to have signed this definitive agreement with MediaTek. Through this investment, we can together offer more advanced and innovative services and enrich the digital mobile life of the future."