In keeping with the lack of innovation and demand generation on mobile VAS front, the global mobile value-added service revenues are set to grow at a sluggish CAGR of 10% between 2013 and 2018, according to global analyst firm Ovum.
In a recent market forecast, Ovum has stated that the increase in global mobile VAS revenues would be driven mainly by the African and Asia-Pacific markets.
Neha Dharia, analyst for consumer telecoms at Ovum says: “The largest share of revenues will come from the Asia-Pacific region, at 13% CAGR. The second region with significant growth is the Middle East and Africa, with a CAGR of 12%.”
Interestingly, the emergence of smartphone culture and penetration of telecom is set to prompt Asia-Pacific region to contribute the majority of mobile VAS revenues based on the large-scale consumption of operators’ mobile services, particularly personalization services.
However, in the less-developed parts of Asia-Pacific, telecom operators will drive towards reinventing VASs to offer an array of services that can be monetized, despite a heavy OTT presence. The widespread enthusiasm for personalization in Asia and the strong role of the operator in China will also help to drive this trend further ahead.
The increase in VAS revenues can also be attributed to the continued growth in subscriber numbers in the emerging markets and the push from operators to deliver relevant mobile services. The growth will come from telco efforts in mobile TV, connected home services, security, payments, and digital games. “There is a slowdown in play due to third-party services offering apps and content for free. This is strongest in the European markets, with a -7 percent CAGR,” Dharia added.
According to Ovum’s research, telcos in North America and Asia-Pacific are attempting to grow VAS revenues by creating a range of new VASs. “The mobile VAS market is dynamic, and allows telcos to innovate and find new revenue-generating services. Over the next five years, this innovation will focus mainly on mobile payments, connected home, security, and utility services,” Dharia said.
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