Mobile VAS market growing, but sluggishly

Michael Carroll
09 Oct 2013

Middle East and Africa (MEA) and Asia Pacific will lead growth in mobile value added service (VAS) revenues through 2018, however overall sales are tipped to increase slowly during the period.

Research firm Ovum predicts revenues will grow at a CAGR of 10% between 2013 and 2018, with Asia Pacific tipped for the greatest rise – a CAGR of 13% - with MEA next on a CAGR of 12%. Analysts say Africa offers the greatest potential, because mobile VAS in the region are still in their infancy, and the market is more reliant on wireless than fixed line services.

“There is a slowdown in play due to third-party services offering apps and content for free,” notes Neha Dharia, analyst for Consumer Telecoms at Ovum. “This is strongest in the European markets, and a -7% CAGR.”

The firm predicts operator personalization services will be popular in developed parts of Asia Pacific, while developing markets in the region will see constant reinvention of VAS to combat a heavy OTT presence.

Services fuelling the growth will include mobile TV, connected home, security, payments, and digital games, the research firm predicts.

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