Already now, mobile phone users can access a variety of useful value-added-services (VAS) for data in Zimbabwe. The future of telecommunications also promises diversified usage of mobile phones as the traditional voice-based revenue faces a decline. Innovation of future mobile applications is limited more by the imagination than by technology.
A value-added service (VAS) is popular as a telecommunications industry term for non-core services, or in short, all services beyond standard voice calls and fax transmissions. They have unique characteristics and they relate to other services in a completely different way. Value-added services are supplied either in-house by the mobile network operator themselves or by a third-party value-added service provider (VASP), also known as a content provider (CP).
Mobile value-added services (MVAS) are those services that offer differentiation and the ability for mobile operators to charge a premium price. Mobile VAS include non-voice advanced messaging services such as SMS, MMS, MIM, and UM and wireless data services based on wireless data bearer technologies such as WLAN, GPRS, 3G, WAP with VAS applications including mobile gaming, mobile banking applications etc. Mobile VAS also includes voice-based services such as Push To Talk and Wireless Data Access.
VAS is generally characterised by the following:
Not a form of basic service but rather adds value total service offering
Stands alone in terms of profitability and/or stimulates incremental demand for core service(s)
Can sometimes stand alone operationally
Does not cannibalize basic service unless clearly favourable
Can be an add-on to basic service, and as such, may be sold at a premium price
May provide operational and/or administrative synergy between or among other services not merely for diversification
There are two types of VAS. The first service type are those value-added services that stand alone from an operational perspective. These types of services need not be coupled with other services, but they can be. Many non-voice services fall into this category. They are often provided as an optional service along with voice services, but they could be offered and used by themselves without the voice service. For example, SMS could be offered and used as a service without voice calling.
The second, and arguably more numerous and important type of VAS, are those services that do not stand-alone. Instead, this category adds value to existing services. While it seems implicit in the definition of value-added, this is an important principle that makes value-added services stand apart from other services.
Recently in Zimbabwe there has been a lot of talk about mobile VAS services and applications due to the increase in the number of telecommunications companies offering data oriented mobile networks. One of Econets primary goals of 2011 is to increase their value added services in order to offer mobile applications and services to their subscribers through their 3G network.
Other companies like Netone and Telecel are also offering mobile banking applications and services to their clients through their networks. The only challenge which still faces Zimbabwe is that this market is not very open to the outside application developers, content providers and technology entrepreneurs. Getting information about the terms and conditions of partnering with the Mobile Network Operators (MNOs) to offer value added services is not easy.
It seems MNOs in Zimbabwe are interested in leading the VAS market through in-house application or services development. The interesting question is, will they be able to innovate and develop interesting applications and services to attract huge communities around their products? In many countries 3rd party content providers and application developers partner with MNOs to provide VAS.
In South Africa access to MNOs in relation to VAS is an email or website or phone call away. There is a Wireless Application Service Providers Association in South Africa which was set up to protect and regulate the mobile users, developers and network operators when they offer their mobile applications and services.
As the competition for mobile applications and services heats up in Zimbabwe there is need for a transparent MVAS industry where all the stakeholders (MNOs, Application Providers and mobile subscriber protection organisations) participate. Zimbabwean regulators and MNOs need to open up this market for technology entrepreneurs and content providers so as to increase ICT usage.
Post published in: News
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