Mobile value added services (VAS) are the additional services provided by the telecom operators, apart from the voice communication services. Introduction of the smart phones has revolutionized the telecom industry and the mobile subscribers are using a large number of the value added services, in addition to the core mobile services.
How Long Term Evolution (LTE) Changed the Mobile Value Added Services Market
The wireless communication industry can be segregated on the basis of long term evolution (LTE). Long term evolution, better known as 4G LTE, is an industry term for defining high-speed data for smart phones, tablets and other hand held devices. With the introduction of LTE, value-added services have reached a new level.
Mobile Banking and Mobile Payments to help Financial Inclusion Initiatives in Developing Economies
The VAS application includes categories such as mobile banking and mobile payments, mobile advertising, mobile entertainment, social networking, mobile gaming, mobile health and mobile commerce among others.
Mobile banking and mobile payments market is expected to grow massively in the developing countries where a significant part of the population is yet to be connected to financial organizations. Short Messaging Services, Near Field Communication and smartphone applications are the common mobile mediums. Online wallet services from Paypal, Amazon and Google have boosted the growth of market. However, unavailability of suitable technology in the developing economies as well as the inability of the low-income groups to get access to the appropriate mobile payments medium might slower the growth of the market.
Mobile advertising has opened opportunities for the advertisers to use advanced targeting technology to reach the desired customer segment. Various types of mobile advertising include SMS advertising, MMS advertising, audio advertisements and advertising through mobile games and videos. The category of mobile entertainment is a broad classification which can include mobile gaming and social networking among others.
Subscribers are Not the Only Beneficiaries in the Mobile Value Added Services Market
The Mobile VAS market has opened opportunities for the segments such as mobile network operators, mobile application developers, mobile payment service providers, social commerce vendors and mobile advertising providers.
Telecom Industry Might Lose Revenue Due to the Mobile VAS Market
Last year, when Mark Zuckerberg, founder of the social networking giant Facebook, bought WhatsApp for US$ 19.2 billion, he ruffled the feathers of the mobile service providers. With the introduction of mobile based applications such as WhatsApp and Viber, the mobile industry stands a chance to lose a fair amount of revenue from its traditional services such as phone calls and text. Also, Silicon Valley giant Google Inc is trying to create a global network that will cost the same to use for calls, text and data, irrespective of the user location. It would be interesting to see that how the telecom industry copes with such challenges posed by the mobile VAS market, and innovates itself to increase the revenue.