An introduction to Telecom VAS, Mobile VAS

1. TELECOM VAS
An internet research
Denford Kambarami
dkambarami@gmail.com
Abstract
Mobile Value Added Services refer to products/services (in addition to voice) offered via a mobile
platform, e.g. Short Message Service (SMS) and Multimedia Message Services. It is a broad categorization
of products/services that add value through affording the user flexibility, convenience, assistance and other
benefits from the product’s use. Mobile VAS can also be defined as beneficial mobile services that are
offered by mobile service providers apart from the voice communication services.

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Contents
1. Telecom VAS.........................................................................................................................................2
2. VAS Generations...................................................................................................................................2
3. VAS Categories (The M Approach) .......................................................................................................3
4. Mobile VAS Ecosystem – Players..........................................................................................................3
5. VAS Connections...................................................................................................................................3
6. VAS Pricing ...........................................................................................................................................3
7. Major VAS Services in Zimbabwe..........................................................................................................4
8. References ............................................................................................................................................4

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1. Telecom VAS
Mobile VAS is one of the hottest market segments in telephony today. Mobile Value Added Services refer to
products/services (in addition to voice) offered via a mobile platform, e.g. Short Message Service (SMS) and
Multimedia Message Services. It is a broad categorization of products/services that add value through
affording the user flexibility, convenience, assistance and other benefits from the product’s use. Mobile VAS
can also be defined as beneficial mobile services that are offered by mobile service providers apart from the
voice communication services. Mobile VAS is used to promote telecom’s primary business of standard calls
which is fast losing business to competitors. Value-added services add value to the standard service offering,
spurring the subscriber to use their phone more and allowing the operator to drive up their ARPU (Average
Revenue Per User).
Value-added services are supplied either in-house by the mobile network operator themselves or by a third-
party value-added service provider (VASP), also known as a content provider (CP) such as Herald or
Goal.com. VAS success is based on creative approach and innovative ideas using continuous research of
the subscriber base so as to come up with new VAS products. The major advantage of VAS is low cost
supported by revenue from massification of these services.
2. VAS Generations
First generation VAS services
 SMS
 MMS
 data access
Second Generation VAS Services
 Missed call alert
 Call me back
 Caller Ring Back Tone
Third Generation VAS Services
 Mobile News
 Lotto
 Special Bundles – content-based charging
 Mobile Money Services

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3. VAS Categories (The M Approach)
a) M- health: Telco’s are partnering healthcare companies to deliver m-health services. Include locating
hospitals, fixing appointments, registration of patients, getting medical advice, facilitating treatment,
and seeking blood donation.
b) M- governance: not yet in Zimbabwe but at least you can pay council bills using EcoCash.
c) M-education: Major telecom players are enabling mobile as a platform for imparting education. Eco-
School.
d) M-commerce: Telecom carriers are increasingly taking interest in m-commerce services. Telecash.
e) M- agriculture: These services bridge the information gap between farmers and market conditions.
Key services include commodity prices, local info, weather updates, multiple language support, and
so on. Eco Farmer.
f) M-infotainment: Almost all leading telecom companies provide information and entertainment-related
services. Mobile News. Games. CRBT.
4. Mobile VAS Ecosystem – Players
1) Telco or MNO
2) Third Part – Developer
3) Content Provider
4) Subscriber or customer
5) Mobile Regulatory Authority
6) Revenue Authority
5. VAS Connections
 SMPP – SMSC
 Web services
 FTP or SFTP
 MM7 Connection
 SS7 – INAP Connection
6. VAS Pricing
 Content based charging – e.g special bundles – Telecel and Econet Zimbabwe
 Usage based charging –data bundles (10G costing a lot cheaper per MB than 5G – Airtel Malawi)
 Pricing by app - WhatsApp and twitter
 VAS Bundling (Opera mini data bundles plus WhatsApp – Econet Zimbabwe)

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7. Major VAS Services in Zimbabwe
 Ring Back Tone(CRBT)
 Mobile News
 Missed Call Alerts and Voice Mail Box
 Mobile Money & M-commerce based services
 Mobile Advertisements
 Contests & Voting
8. References
http://en.wikipedia.org/wiki/Value-added_service
http://www.tatelecom.com/managed-vas/
http://www.sangoma.com/solutions/vas/
http://www.strandconsult.dk/sw2128.asp
www.cherieblairfoundation.org/mobile (Mobile Value Added Services: A Business Growth Opportunity for
Women Entrepreneurs)
http://forbesindia.com/blog/no-wires-attached/mobile-vas-is-dead-long-live-mobile-innovation/ (comments
section)
http://www.slideshare.net/saghaeian/mobile-value-added-services-mvas
http://www.prnewswire.com/news-releases/mobile-vas-market-growing-at-1062-cagr-to-2018-forecasts-a-
global-value-added-services-research-report-273000211.html
http://www.mobileworldlive.com/vas-touted-operator-growth-emerging-markets
http://www.zdnet.com/article/mobile-vas-in-india-to-cross-6b-by-2013/
http://www.academia.edu/3476896/A_model_for_bundling_mobile_value_added_services_using_neural_n
etworks