6 MVAS Tools Telcos can Adopt to Ensure Customer Retention
By Telecom Tech Outlook | Wednesday, August 28, 2019
The rise in market revenue in the future will be driven by the Mobile Value Added Services (MVAS)
Fremont, CA: Value Added Services (VAS) is a mounting industry spurring mobile subscribers to use their mobile devices, enabling the mobile operators to drive ARPU (ARPU). The developing world is experiencing a vast rise in the count of mobile phones and high internet penetration across the globe, creating enormous opportunities for Mobile Value Added Services (MVAS). It refers to the services offered by the telecommunication operators beyond the voice communication services such as video, data, and so on at a little or no cost. Mostly these additional services are extended at an additional charge and are considered as one of the most crucial revenue drivers in wireless environments and have a vast market prospect. These services have stimulated the interest of customers all over the world. Thus, to differentiate themselves and to attract new potential customers in this competitive world, telecom enterprises need to find innovative ways.
Here are the services included in VAS, resulting in the increased revenue and growth of the market that CIOs can consider while adopting the best services that can fit their customer needs.
Geographically MVAS market can be segmented into Europe, North America, Asia Pacific, Middle East and Africa, and South America. Based on the market analysis conducted in these regions, global mobile value-added services (VAS) market is expected to attain an incremental growth of almost $242 billion during 2018-2022. However, internet penetration across North America and Europe put these regions at the forefront.
Telecom companies are looking forward to increasing the number of subscribers by working on innovative services and marketing strategies. As the revenue from voice call has decreased compared to the previous years, companies are increasingly concerned about introducing new services. Apple, Reliance Industries, and Vodafone, Idea Cellular Ltd, and Google, and more are few key players in the MVAS market. Telcos derive more revenue by offering the following MVAS services.
With the proliferation of 3G, 4G, and 5G services and the boom of social media, mobile users tend to share pictures, documents, and contents among themselves. Sometimes they download and save for future reference, and when their mobile phones cannot store large data, they demand VAS from the telcos. Cloud Storage, a type of VAS, is ideal and people can subscribe to it to get storage space. It allows them to download and store the content of their interest online and can be accessed 24/7 from anywhere across the globe at any time with a network connection.
Mobile Gaming and Apps
High-quality content offered by technological advancements will drive the telco operators ahead. The new version HTML5 technology runs games in mobile browsers of tablets and smartphones such as iPads, iPhones, iPods, and Android devices. However, the main drawback of HTML5 is that it requires a constant internet connection. Therefore, telcos are in the hunt of smart technologies that can enable mobile users who play games to fully utilize the power of phone without being disturbed by the quality of internet connection. The service offered should enable the consumers to download full APKs that can be installed on the phone, thereby providing high-quality games and apps.
Any instant messaging (IM) service should enable quick problem solving by allowing users to share information in real-time. One of the significant features of many instant messenger clients is the ability to see the presence of the friend or co-worker. The facility to insert images and emojis into a message is now a standard IM feature. The introduction of chatbots and AI technology on business platforms allow businesses to communicate with the customers, and by executing their needs can enhance the customer experience. Expanding the payment facilities to messaging apps is another current trend in the messaging platform. Some of the popular IM clients of the mobile operators who provide extensive services include Line, Pidgin, Microsoft Skype, Slack, Telegram, Viber, WeChat, WhatsApp Messenger, and more.
Gone are the days when CDs, vinyl records, and cassette tapes served the needs of a music lover with the introduction of smartphones. One of the popular services, music subscription, is a source of substantial revenue. The best online music streaming services include Spotify, Deezer, Apple Music, Google Play Music, and more. These services align themselves with the market trends towards entertainment. A lot of consumers subscribe to these paid services adding more revenue in a way that such an increment in the income was never imagined.
TV Shows and movies
The telecom companies are offering VAS enabling online streaming of TV shows and movies. Notably, Netflix subscription is changing the world through its worldwide distribution. The content providers like Netflix allow telcos to provide VAS in content delivery, payments, interactive marketing, and customer care. Thus, television is the most remarkable over the top (OTT) media service provided as VAS by the telco industry.
On-Demand Video Subscriptions
In this busy world, people hardly find time to read and know things, and thus, the on-demand video is experiencing a hike. Video is a new trend for content marketing and is a type of VAS that can escalate market revenue. On-Demand Video Subscriptions allow users to access a wide range of programs unlimitedly for a monthly rate, providing them with control over the subscription. Enabling the users to watch programs from home, it acts as a comfortable platform. The subscribers are also provided with facilities like pausing, rewinding, fast-forwarding, and more.
Some other modern VAS services include Voicemail SMS voting, top-up, SMS lotteries, SMS voting, balance checks, M-commerce, and mobile money based services, location-based services, devotional applications, and more.
Benefits of MVAS
• These services earn significant amount for telecom companies enabling them to elevate the ARPU.
• It attracts more customers and instills trust in them, ensuring customer satisfaction and retention.
• It brings in a healthy bottom line.
• The consumers are offered an improved pricing proposition. • It helps in reduction in CAPEX and OPEX.
Thus offering different types of VAS enables the service operators to stand out in the competition as they provide advantages to the service providers as well as the customers. It is important to note that operators update these services frequently depending on the latest trends and needs of their customers.