Tuesday, December 6, 2022

Value Added Services – Rising to the challenge of global consumer demand

Value Added Services

In the recent years, there has been substantial growth in the Value Added Services Market, which has been propelled by the need for more digital content creation across sectors such as, designing, graphics, animation, education and retail, to name but a few. If you were to take a stroll down your local high street, you can probably tell that most people are carrying a smartphone, and official reports would clearly support your observation; according to estimates from GSMA, the number of unique mobile subscribers will reach 5.7 Billion by the end of 2020. That’s close to 75% of the world’s population.

Reports have shown that the Asia Pacific region has the highest market share in the mobile Value Added Services market.

Why does Asia Pacific have the highest market share?

This is where a large percentage of the world’s population is concentrated. The exponential growth in the number of mobile subscribers is therefore attributed to the developing economies of the region. Governments are beginning to develop their infrastructure to serve the needs of people living in more rural parts of the country, who had little or no access to mobile connectivity. As such, there has been a significant increase in subscribers.

Mobile devices are driving digital media consumption globally, with Value Added Services such as social media, entertainment and gaming being used primarily because services are more accessible through low-cost android devices and expanding access to the internet – with faster 3G and 4G services across settings.

Mobile operators have invested close to US$ 700 Bn in the last decade for the development of the telecommunication network infrastructure but pressure continues to mount for operators to meet the demand and to satisfy the changing preferences of the global consumer.

Consumer engagement has shifted away from first-part operator services to third-party messaging services therefore, VAS is a crucial component for operators who wish to thrive in this period of digital growth and expansion. It’s about going beyond conventional offerings and providing a service that offers easy, innovative media access to all smartphone users.

What drives consumption and monetization of Value Added Services?

A decline in conventional voice, text and data services, means all the value-added services give operators both a revenue stream and direct engagement with their customers’ mobile use. There has been a paradigm shift from traditional media such as tv, radio and print press, to digital media. This provides an invaluable opportunity for service providers to explore and experiment with digital on-demand monetization models and larger content catalogues.

  • tags