Our developing world is experiencing an enormous rise in mobile usage for the past ten years. This growth is anticipated to accelerate as we head towards 2021 and beyond. According to statistics stated on blog.applandinc.com, there are more than 4.8 billion phone users across the globe and the figures were accounted for 6 billion in 2020. Furthermore, the number of mobile users has augmented by 1 billion as compared to 4.23 billion users in 2014. Apart from this, telecom companies are aiming at capitalizing on the rising number of subscribers, and continuously devising new marketing strategies to attract more users. Moreover, Research Dive’s new report on global mobile value-added services (VAS) market states that the market is predicted to enhance at a CAGR of 15.3% from 2020 to 2027 timeframe.
What is Mobile Value-added Services (VAS)?
Value-added services (VAS) in mobiles are those services that are provided by the telecom companies to the customers. These services do not involve basic amenities such as SMS, data, or voicemail, but include e-commerce, entertainment, sports, astrology, and much more. VAS is either free or chargeable. Apart from this, according to TRAI (Telecom Regulatory Authority of India) regulation, any telecom company cannot activate VAS without prior consent from any customer. Also, if the customer decides to unsubscribe VAS within 24 hours of activation of services, then the telecom provider has to deactivate the subscription and refund money. Moreover, users who receive VAS without a subscription can deactivate it by dialing a toll-free number of that particular value-added service.
Popular Mobile Value-added Services (VAS) in Today’s Time
Here are some of the services that people are gravitating to for entertainment and to seek knowledge at the same time.
China mobile’s IM service called Fetion is gaining a huge audience of over 100 million as this app allows users to use IVR (Interactive Voice Response), SMS, and GPRS (General Packet Radio Service) modes. This kind of diversity extracts the real value of the app and people can easily communicate at anytime and anywhere.
content and games are the future of the VAS in the telecom business and mobile gaming industry around the world due to the presence of steady internet connectivity. Cross-platform HTML 5 technology governs games in mobile browsers of smartphones and tablets. All kinds of smart devices such as iPhones, iPods, iPads, and Android devices are capable of running this platform. HTML 5 is an ideal technology for Blackberry, Firefox OS, Windows Mobile, personal computer, and Mac as VAS offered by telecoms is free from rules and regulations imposed by Google Play or other app stores. Apart from this, telecoms, who are indulged in providing apps and games VAS service, need to identify a source from where the customers can download APKs (Android Application Package) securely on the phone.
Music is a popular subscription hotspot in the Middle East countries as the markets are highly saturated here. Telecommunication companies such as Telenor’s Wimp and Virgin Media provide promising prospects to the customers in this region. Also, these companies offer partnerships to consumers and mobile companies to avert piracy issues.
Vodafone 360 service combines user’s contacts across numerous apps such as Google, Facebook, and IMs into a single address book. The idea behind this service was to offer consumers the facility to communicate with people. However, the service collapsed due to user complaints.
5.On-Demand Video Subscriptions
Video content is gaining popularity as users prefer visuals and audio over long articles. The busy schedule has pushed a majority of the population towards picking up video content on the internet. Therefore, services such as video-on-demand via VAS are skyrocketing in today’s time.
6.TV Shows and Movies
Various OTT platforms such as Netflix are changing the business world for VAS services that are offered by telecoms. A majority of telecom companies are providing VAS by working in collaboration with online viewing platforms in the entertainment industry. Furthermore, working hand-in-hand with content operators such as Netflix, telecoms contribute by offering VAS in payments, content delivery, customer care, and interactive marketing. Moreover, television is the famous OTT service provided as VAS by the telecom industry.
Users tend to download and store a vast amount of content on smartphones due to which the issue of storage space always persists. Therefore, VAS service in the form of cloud storage pushes people to subscribe to acquire storage space that is accessible 24/7 with data connectivity.
Covid-19 Impact on the Market
The mobile value-added services (VAS) market is experiencing a positive impact during the Covid-19 pandemic. The reason for growth is massive usage of mobile value-added services such as video calling, gaming, home deliveries, and online video streaming during the lockdown phase. The new normal of contactless payments, takeout food, and online grocery shopping via VAS surged during the pandemic. These all factors are considered to boost the market during the coronavirus outbreak.
The diversity of VAS provided by telecoms will increase as people are switching to smartphones and digital gadgets in today’s era. Moreover, telecoms are constantly coming up with VAS to promote businesses and surge customer service experience.