Value Added Services – a double win?

August 24th, 2009

Mobile markets are maturing and many operators are setting themselves apart from their competitors by offering Value Added Services (VAS). In most instances subscribers will need to send a SMS message in order to receive or download the item, whether it is a ring-tone, wall-paper or email (in the case of ForgetMeNot Africa’s Message Optimiser) leading to increased network usage.

So it’s no surprise that according to a report by Strand Consulting, the primary source of operators VAS revenue is derived from SMS traffic, with only a small amount coming from data services.

However, increased network traffic is only one benefit of offering VAS. Smart operators realise that VAS also have an important role to play in building customer loyalty and reducing churn. By offering customers value added services which are relevant and useful to their subscriber base operators can build long-term loyalty and minimise the loss of revenue to churn.

Tags: ,

Post a Comment

Security Code: