VAS to generate $2.06 billion in revenue in 2012 (Taiwan)
Value added services (VAS) offered on mobile devices are estimated to bring Taiwan’s top three telecom carriers a total of US$2.06 billion in revenue this year, around 50 percent more than that they scored altogether last year, according to a report by Taiwan Economic News.
Brisk sales of smartphones at Chunghwa Telecom Co., Ltd., Taiwan Mobile Corp. and Far EasTone Telecom Co. Ltd. have accelerated their revenues from value added services on the mobile computing devices. Last year, the services fetched the three providers a total of US$1.39 billion in revenue.
The report revealed that Chunghwa raked in revenue US$524 million from value-added mobile services in 2011, while the other two scored US$434-441 million from the services each.
Further, as per the report, Far EasTone’s revenue from value-added services for the first quarter grew 48 percent from the same quarter last year.
Taiwan Mobile and Far EasTone separately projected smartphones to constitute 70 percent of their total procurements this year, up from 50 percent on their procurement list. Chunghwa recently revised upward smartphone’s percentage on its 2012 procurement list to 70 percent from 55 percent.
New TRAI guidelines upset VAS providers (India)
Recent directives by the Telecom Regulatory Authority of India (TRAI) on the procedure for providing Value added services (VAS) to users, have turned all VAS providers against the telecom authority as they feel that this would not only harm the industry but could also cause a revenue loss of about $317 million to the government.
In an attempt to protect the interest of the consumers, TRAI had proposed directives in July to service providers on the procedure for providing VAS to users. As per the directive, the service providers need to obtain confirmation from the consumer through SMS, e-mail or in writing within 24-hours of activation of service, and only on receiving such confirmation will the service provider be able to charge the consumer. In the event that the consumer does not respond or sends a negative response, the services will be discontinued.
The service providers on the other hand feel that such directives are not consumer friendly and could hamper the ease with which mobile subscribers currently access their favourite services such as music, sports updates, news reports, video streaming among others.
TCS and HCL Tech look to acquire Comviva as Bharti plans to sell (India)
Bharti Enterprises may sell off a majority of its stake in Comviva, a leading company specializing in providing value added services (VAS) for mobile handsets. Sources claim large IT companies such as TCS and HCL Technologies are competing to acquire the same and a deal might be in the pipeline. Reportedly, Bharti aims to receive between $300 and 350 million for sale of its non-core business.
The youth segment provides for a large consumer base demanding quick downloads for music, video clips and sports updates among others, enabling VAS to become a good revenue stream for mobile service providers. With competition causing voice tariffs to be priced at very low rates, mobile operators are increasingly turning to VAS for better revenue generation.
Services such as SMS account for half the VAS revenues, while caller tunes and mobile applications for radio, live score update and mobile gaming downloads are increasingly gaining popularity. For some mobile companies, VAS accounts for as much as 7-10 percent of their revenues.
With mobile players working to provide various new services on their 3G network and innovations like mobile banking on the rise, VAS revenues are expected to rise significantly.
NuevaTel PCS introduces top-up promotion (Bolivia)
Bolivian operator NuevaTel PCS, which operates under the Viva brand, has launched a top-up promotion for its prepaid customers.
Users who recharge their mobile account by March 31 will be given double the amount of airtime included on the top-up card. Users can use the bonus airtime for national and international calls, as well as national SMS and value-added services.
Idea Cellular to empower the rural segment of Maharashtra, Goa, Gujarat, UP West & AP
Idea, the pan-India telecom operator and handygo, India’s leading provider of VAS solutions, have announced the launch of ‘Behtar Zindagi ‘, latest bouquet of VAS offerings for customers in rural areas of Maharashtra, Goa, Gujarat, UP West and Andhra Pradesh. This innovative product is specially designed to provide day-to-day information to Idea’s rural subscribers. The subscribers can get exhaustive and up to the mark information regarding health, education, finance, weather updates, mandi rates, livestocks, agriculture and fisheries.
To use this service Idea subscribers need to dial 556780 (tollfree) and avail the subscription pack at a minimal charge of Rs 30, 15, 7 and 2 for 30, 15, 7 and 1 day, respectively. The service is available in all the respective states regional languages along with Hindi and English.
This unique IVR based rural solution by handygo provides credible and authentic information to the rural subscribers. For latest and reliable updates handygo has partnered with various organizations such as Care India, Aviva Life Insurance, Indian Metrological Department, INCOIS, Hariyali Kisan Bazaar, Network for Fish Quality Management and Sustainable Fishing, Transparency International India, Sonalika, EKO India Financial Services and plethora of other organizations.
On this tie-up, Mr. Praveen Rajpal, CEO, handygo said, “We are contented to partner with one of India’s leading mobile operator -Idea Cellular. We envisage great potential in the untapped rural market and are bullish about the stupendous feedback from the end consumers. We have partnered with various large associations for ensuring the latest and authentic information to the mobile subscribers using the service. Our IVR based rural product is available in all the regional languages along with Hindi and English.”
Announcing the launch of these services, Mr. Rajendra Chourasia, Chief Operating Officer – Maharashtra & Goa, Idea Cellular said, “With over 1.2 crore subscribers, Idea is the largest mobile network and has the highest penetration in rural parts of Maharashtra & Goa. We are happy to partner with handygo to offer relevant and affordable services to our rural subscribers in the circle.”
MTS Ukraine launches single quality monitoring system
MTS Ukraine is planning to launch a single quality monitoring system for value-added services on its network.
The operator will install 30 local modules with dedicated software and a central server in Kiev for the system.
The system will test VAS based on known subscriber behavior, including SMS, MMS, WAP, EDGE/GPRS and other services. The system is supplied by Russian integrator Sitronics.
3G Technology to Drive Chinese Telecom Services
Slowdown in the growth of mobile revenue compared to growth in mobile subscriber base has been encouraging Chinese operators to focus more strongly on the development of Value-Added Services (VAS) for rich urban and rural (to some extent) consumers. According to our research report Restructuring and 3G – New Dimensions for China Telecom Sectorâ€, telecom value-added services market in China will grow at a CAGR of around 26% till 2013. China’s telecom VAS market, particularly Mobile Value-added Services (MVAS), will be driven by the launch of 3G services, which heavily depends on data services rather than traditional voice services.
We have found that the deployment of 3G in value-added services will allow Chinese consumers to access the internet, download music, stream Internet video, use mobile mailboxes, pay bills online, and engage in mobile blogging & interactive 3D gaming – all through their mobile phones. However, operators will have to strive hard to obtain major chunk of the 3G markets. They need to work upon strategies that will lure their 2G subscribers to migrate towards the newly offered 3G services.
As per our study, handset manufacturers will also get benefit from the rollout of 3G. Majority of subscribers use entry-level phones that are only capable of making calls and sending text messages, whereas the need to switch over towards next generation networks will fuel the sales of 3G enabled handsets. Thus, the burgeoning 3G markets offers a tremendous growth potential for various industry players such as, handset vendors, value added service providers, application developers, etc.
Restructuring and 3G – New Dimensions for China Telecom Sector†also focuses on market drivers other than 3G that are making Chinese telecom market attractive. It provides detail analysis on the fixed-line telephony, mobile telephony, internet, and broadband market in the country, coupled with its current performance and future prospects. This report has been made to provide clients an insight into the status of emerging technologies, subscriber growth, handset sales, market share, market penetration, competitive landscape, opportunities and roadblocks, and future scenario of the Chinese telecom market.
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Mexican Telecoms Revenues Reach $15 Billion
A survey conducted by Acision has revealed that total mobile telecoms revenues in Mexico reached US$15 billions with 23% from VAS (SMS 60%; Data: 20%; others: 20%). Latin America already has approximately 540 million mobile service subscribers, with Mexico registering 88.2 million subscribers and a 79% market penetration.
MMS usage is also common, with 14% of users accessing the service during the last quarter. This is high compared to the Brazilian market, where MMS is only used by 5% of cell phone owners. Another major finding in Mexico is that Mobile Marketing is something that 79% of users receive, with 17% stating they receive marketing messages on a daily basis.
According to Rafael Steinhauser- Acision’s President for Latin America, signs of increased uptake of VAS in the Latin American mobile market have caught attention in recent months, especially in Mexico. This rise in usage reinforces the increased importance of these services and the need for mobile operators to invest in the delivery of high quality VAS to generate increased ARPU and profitability.
Besides, the survey found that 80% of Mexicans use their mobile handsets to listen music, while 82% use their handset to play games. Also, 11% of users access social networks from their mobile. For heavy users this number goes to 32% while 6% have accessed a bank service and 5% have made a payment.
Telefonica Argentina sells premium customer support as a service
Telefonica de Argentina is aiming to turn customer care into a revenue-generating value-added service by offering its customers in-depth advice at a premium. The operator already provides a premium customer support service to its broadband customers called Dr Speedy; however, Telefonica de Argentina wants to go further.
According to Jose Luis Caresani, head of management and provision of broadband services at Telefonica de Argentina, the company wants to change the relationship they have with their customers. As well as troubleshooting problems, a customer service representative could for instance offer advice on connecting new devices such as a printer to a home network. The company wants to become a bigger part of customers’ digital lives.
Caresani noted that a closer relationship with its end users could also help the operator identify opportunities to develop and launch new services more quickly.
Moreover, Alcatel-Lucent believes consumers are willing to pay for such services.
According to Ben Geller, senior director of product marketing at Alcatel-Lucent, Consumers are beginning to understand that a line exists between customer support they’d expect to receive for free, and customer support they expect for a fee. Everyone eventually gets to the point where they don’t want to be a home CTO, and they’re prepared to pay someone else to be one for them.
