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Thursday, July 19, 2012

Value added service in mobile communication

A value added service (VAS) can define as a popular telecommunications industry term for noncore services. Here Mobile value-added services (VAS) are those services that are not part of the basic voice offer and are availed off separately by the end user.

This Value Added Services (VAS) are now well established in the mobile services sector helping to grow traffic revenues and profit while providing the users with tangible benefits and opening up new markets. So in telecommunication industry on a conceptual level, value added services add value to the standard services.

However time to time nature of value added services are changed.When mass market becomes more and more important for future revenue growth, new players are moving into the Value Added Services market such as service providers, content providers, retail organisations, and advertisers.

Characteristics of Value added services:

  • Not a form of basic service, adds value total service offering
  • Does not cannibalize basic service unless clearly favorable
  • Can be an add on to basic services
  • Stands alone in terms of profitability and stimulates incremental demand for core services
  • Can stand alone sometimes operationally
  • May provide operational or administrative synergy between or among other services

1 comment:

  1. Basic services of telecommunication business (voice and SMS services) are still there but innovation of telecommunication services is believed will increase dramatically in the future...

    Mobile Value Added Services Market


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