Value-Added services on Mobile. In the telecom industry, competition comes not only from other operators, but also from “new frenemies” like OTT (over-the-top) players. Services like Netflix and Hulu, VoIP providers like Skype, What’s app and walled digital content gardens like application stores and streaming music services.
Telcos & Declining Revenues
Telcos face flat growth due to market maturity, demand saturation, commoditisation of connectivity services and advanced mobile devices. To counter attack these business challenges, telecom companies in all markets must beyond VAS (value-added services). This will not only bring differentiation for them but will also attract new customers and boost margins & ARPU (average revenue per user).
From a pure business perspective, a mobile value-added service is an extra service for which subscribers pay extra. Content based services are on rise example educational content for school & university books at very low-cost and various tips for health, Information technology, Day to-day life, Astrology, Managing Relations, Business, Financial Advise etc and many more.
Contents related challenges
Challenge for content providers is to make sure contents are market & location specific and per subscriber profile otherwise it would be nuisance for subscriber. As interest in video entertainment has grown, so will the desire for high quality of experience, or QoE, especially if a viewer is paying a premium for it or it is accompanied by advertising, since the advertiser wants to make the best impression possible.
Study from google search shows, One example provided in the webinar is Orange France’s partnership with streaming music service Deezer. The partnership boosted Deezer’s French subscriber base from 25,000 to over 1.2 million.
Orange brings its audience, billing, and data analytics to the table, and reaps the benefits of a more compelling sales offering and increased data usage among subscribers. Machine learning algorithms were deployed to boost more sales and deliver taste specific contents.
Books and Reference Material
- This article has contribution from Sheetal as part of this post comes from her post from last year in linkedin. This was originally written by Sheetal Sharma (“Content based value added services for mobile customers”).
- In Next article we will talk on specific content items.
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