Mobile Value-Added Services Can Increase Revenue of Data Providers

Mobile value-added services (VAS) are referred to non-core services or the services beyond standard voice calls.  Wide range of VAS may include message service (SMS), multimedia messaging service (MMS), mobile infotainment, mobile money, and others. VAS can add value to the standard service offering to attract more subscriber to up their average revenue per user. 

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Location-based Services to Attract More Users

VAS services are classified into personal use and commercial use segments.

The personal use segment includes accessing mobile applications, web browsing, checking e-mails, news reading, mobile gaming, and interacting on social media sites. Commercial use generally includes advertising, notifications, location-based tracking, analytics, and others. Introduction of location-based services (LBS) to boost the commercial use of value added services. LBS has scope in e-commerce industry, tourism web applications, social media networking apps, food delivery apps, shopping apps, and others.

To capitalize on this trend, Microsoft Corporation recently launched Azure Location Based Services (LBS). Using LBS services, the cloud developers can access geographical data to control many tasks including internet of things (IoT) asset tracking, fleet management, logistics, urban planning, retail, automotive and so on. The company is scheduled to acquire application program interfaces (API) services from TomTom NV, which may include mapping, routing, search, time zones, and traffic information that will be available using Azure.

Esri, a provider of geographical information system mapping software is also likely to join Azure LBS to offer better services to enterprise customers. Services may include digital mapping, location data management, and geographic analytics, which are provided via Esri’s ArcGIS suite and developer API.

Market Overview

According to a report available on Radiant Insights, Inc.; the mobile value-added services market is likely to show lucrative gains in terms of revenue by 2025. Increasing penetration of mobile devices such as smartphones and tablets, availability of high-speed internet such as 3G and 4G in comparatively reasonable price, and growing use of communication services other than phone calls can drive the market over the forecast period (2018 to 2025).

Some of the key companies operating in the market include include AT&T; Value First Digital Media Pvt. Ltd; CanvasM Technology; Sangoma Technologies; and Astute Systems.

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