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Telecom Intelligence Series: "Mobile VAS update: Everybody wants a smartphone"

Telecom Intelligence Series: "Mobile VAS update: Everybody wants a smartphone"

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Published by: Business News Americas on Jun 09, 2010
Copyright:Traditional Copyright: All rights reserved


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Our previous Mobile VAS reports highlightedhow SMS services account or the bulko mobile operators’ data revenue in thisregion, and will continue to do so goingorward. However, no one can deny thatsmartphones and apps have caught theimagination o operators and consumersalike, and will prove to be an important parto the oering.Even so, the region has relatively low SMSthroughput fgures compared to developedcountries, not to mention low broadbandpenetration, and mobile operators are well aware o the growth opportunities in boththese segments.Smartphones have a window o opportunity tocapitalize on this potential, but must battle itout against laptops and eature phones thatare constantly becoming more versatile.All in all, the mobile operators are spoiled orchoice in terms o VAS niches that they maywish to prioritize, and some o them havesufcient resources to tackle all these nichessimultaneously.In this ourth edition o our Mobile VASIntelligence Series, we see how smartphonesand apps are the springboard that is givingimpetus to a whole world o alternative VASservices aimed more at the average consumer.
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Mobile VAS update: Everybody  wants a smartphone
Smartphone fever
Consultancies have been publishingimpressive growth projections orsmartphone sales in Latin Americaand globally this year, and PyramidResearch goes as ar as projecting38% CAGR or smartphone sales inLatin America through 2014.
Enter apps
Carriers tolerate ree apps, andeven ree apps rom outside theirown app store, because it isthe apps that will then go on toencourage internet surfng via thehandset.
SMS is still king
In Brazil messaging accounted or50% o VAS revenue in 2009, closeto the global average o 53%, butthis glosses over the act that SMStrafc per user is very low, meaningoperators can rapidly increase VASrevenue by promoting SMS services.
Source: Acision, Teleco
SMS as percent of total VAS sales, Brazil 4Q09

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