New TRAI guidelines upset VAS providers (India)

On 09.19.11, In Mobile services, By Editor

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.

 

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TCS and HCL Tech look to acquire Comviva as Bharti plans to sell (India)

On 08.30.11, In Mobile, Mobile Banking, Mobile Operators, Mobile services, By Editor

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.

 

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NuevaTel PCS introduces top-up promotion (Bolivia)

On 03.18.11, In Mobile, By Editor

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.

 

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Idea Cellular to empower the rural segment of Maharashtra, Goa, Gujarat, UP West & AP

On 03.15.11, In Mobile, By Editor

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.”

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MTS Ukraine launches single quality monitoring system

On 02.25.11, In Mobile, By Editor

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.

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3G Technology to Drive Chinese Telecom Services

On 12.14.10, In Mobile, By Editor

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 Sector”, 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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About RNCOS
RNCOS specializes in Industry intelligence and creative solutions for contemporary business segments. Our professionals study and analyze the industry and its various components, with comprehensive study of the changing market behavior. Our accuracy and data precision proves beneficial in terms of pricing and time management that assist the consultants in meeting their objectives in a cost-effective and timely manner.

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Mexican Telecoms Revenues Reach $15 Billion

On 12.13.10, In Mobile, By Editor

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.

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Telefonica Argentina sells premium customer support as a service

On 10.28.10, In Mobile, By Editor

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.

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Telcel Mexico Launches Smart SMS Service With Acision Message Plus

On 10.28.10, In Mobile, By Editor

Acision, a world leader in mobile data, today announced that Telcel, the leading operator in Mexico and part of LATAM’s leading wireless group America Movil, has launched its Smart SMS service. Based upon Acision’s Message Plus solution, the service will offer Telcel’s 61.2 million users with personalised messaging services which generate new revenue streams for the operator.

Following a worldwide trend of rising peer-to-peer (P2P) messaging traffic, text messaging in Latin America has experienced a strong uplift in recent years. This clearly demonstrates the continued importance of SMS among mobile users. Acision’s solution comprises of key components of Acision’s Open Data Services Architecture, such as Acision Message Plus, Acision Online Message Store and Acision’s Mobile Data Charging solution. This allows Telcel to differentiate basic SMS with enhancements already available in voice and email. When sending and receiving text messages, Telcel users will now have the ability to send automatic replies, forward or copy messages to another number or email address, block messages from certain mobile numbers as well as access stored messages online.

“At Telcel, we are committed to providing services that match the ever changing lifestyles of our customers. In order to improve our ability to meet customer demand and improve the value of mobile messaging, we wanted to evolve our basic SMS service. As a strategic partner, Acision has always provided industry leading messaging solutions that allow us to innovate subscriber services, stimulate usage and create new revenue streams,” said Gustavo Leal, head of Entertainment VAS at Telcel. “Telcel has successfully launched its Smart SMS service through Acision Message Plus, giving users easy access to a range of new services, accessible through the internet and their mobile devices.”

“Over the past nine years, Acision has been working with Telcel, delivering reliable mobile messaging services to the millions of Telcel subscribers every day,” said Salvador Blasco, VP America Movil Global Business at Acision. “We are delighted to continue this relationship, supporting Telcel in adapting to the ever-changing mobile data environment. Telcel will be the first in the America Movil group to offer subscribers an array of innovative, value add messaging services.”

With Telcel launching its Smart SMS service, the Acision Message Plus services will soon be available to over 600m subscribers across five continents. This will ensure continued growth in P2P messaging. Furthermore, it will enable tie-ups with additional partners to offer ever more enhanced services, such as desktop messaging, parental control, message based advertising and location aware services.

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Comviva join hands with MTN Ghana for virtual SIM solution

On 09.24.10, In Mobile, By Editor

VAS solution provider Comviva has signed a new deal with MTN Ghana for virtual SIM solution. MTN Ghana is a telecom operator, operating in 21 countries in Africa, Asia and the Middle East.

According to the company, Comviva’s Virtual SIM solution will enable MTN Ghana will be able to extend its services to people who cannot afford to own a handset.

The solution allows users to make and receive calls, send and receive SMSs and make payments, virtually, using other people’s phones. They also gain a unique mobile identity, with their own phone number and virtual phone account.

According to Eben Albertyn, chief technical officer, MTN Ghana, With Comviva’s Virtual SIM solution, the company will be extending access to mobile communications and providing underserved segments with an affordable route to gaining the unique mobile identity.

According to Manoranjan Mohapatra, chief executive officer, Comviva, whilst mobile penetration in many developed markets has exceeded 100%, there remains significant scope for growth in the world’s emerging markets, where just one third of the population uses mobile communication services. Extending mobile communications to under-served segments requires a cost effective solution that overcomes barriers to service uptake, such as affordability of a handset and simplicity of use.

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