VAS growth revs up to 24%

Staff writer
18 Aug 2011
00:00

Mobile operators in Asia Pacific expect their revenues from value-added services (VAS) -- for example mobile payments -- to grow from an average 14% of all revenues today to 24% within the next three years, according to an independent survey commissioned by Amdocs.

Based on the poll of 120 mobile operator executives, the largest growth in VAS revenues is forecast for India, moving from 12% of revenues today to 29% in three years’ time.

The survey also found that 95% of respondents are pursuing mobile payments and most believe their portals will grow in importance over the next three years.

Furthermore, 75% are pursuing mobile advertising and search strategies, with 65% reporting their subscribers would be willing to view mobile advertising in return for free content such as mobile apps or entertainment.

The survey also revealed that 62% of respondents say that VAS are either important or very important to their company. In Australia and India, 70% of operators regard VAS to be important while only 50% from Thailand and Vietnam believe VAS services important.

Australia and India expect greatest VAS revenue growth. In Australia, the current share of revenues from this revenue stream is 23% which is expected to grow to 30% in three years’ time. However, it is in India that the largest expected growth of 17% in VAS is anticipated -- from 12% at present to 29% in three years’ time. Furthermore, it appears that mobile operators have an advantage over banks in markets like India and Indonesia where a high proportion of the population is unbanked.

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