Though the growing subsciber base was exhilarating & good news to celebrate, the flip side was that the ARPU’s have been descending, leaving only a thin line of profits for operators which is now the momentous concern…
The waning ARPU’s & reducing tariff rates on voice have urged the mobile operators to look for an alternative to push their revenues up the ladder drawing their focus on innovation of mobile VAS which is increasingly a growth area, helping operators to maximise revenues and build healthy ARPU's.
Introducing new concepts of mobile VAS at an affordable price has been an appealing source of revenues and a key differentiator when talking in terms of service provisioning and price war, as the entire products are driven by the subscriber demand, who now wants to be more sophisticated being mobile and demands much of personalization of the luxurious services defnitely at a competitive price.
With voice fast becoming a commodity, it’s no more a differentia and of course many a VAS products will face the same challenge in due course of time.
In the resent past there has been a great demand for data & data related services like EDGE, 3G, HSDPA, IP TV etc but these superior services are band width hungry and can be offered to subscribers only if an operator owns a gargantuan infrastructure and necessary spectrum, though the operators are ready to pump as much funds as required there has been a discrepency in the spectrum allocation by the government. You might have heard a lot about the quantum’s of GSM spectrum, its allocation and pricing in the recent news...
As the game has just begun, all the competitors wants to grab the opportunity to offer the services for the first of its kind to lead ahead in the race thereby winning the customers heart and meeting their expectations by providing superior services at the comfort of mobility. This has led the operators to look forward for the tie ups with content providers though only a little focus is put upon content development…
Note :
The waning ARPU’s & reducing tariff rates on voice have urged the mobile operators to look for an alternative to push their revenues up the ladder drawing their focus on innovation of mobile VAS which is increasingly a growth area, helping operators to maximise revenues and build healthy ARPU's.
Introducing new concepts of mobile VAS at an affordable price has been an appealing source of revenues and a key differentiator when talking in terms of service provisioning and price war, as the entire products are driven by the subscriber demand, who now wants to be more sophisticated being mobile and demands much of personalization of the luxurious services defnitely at a competitive price.
With voice fast becoming a commodity, it’s no more a differentia and of course many a VAS products will face the same challenge in due course of time.
In the resent past there has been a great demand for data & data related services like EDGE, 3G, HSDPA, IP TV etc but these superior services are band width hungry and can be offered to subscribers only if an operator owns a gargantuan infrastructure and necessary spectrum, though the operators are ready to pump as much funds as required there has been a discrepency in the spectrum allocation by the government. You might have heard a lot about the quantum’s of GSM spectrum, its allocation and pricing in the recent news...
As the game has just begun, all the competitors wants to grab the opportunity to offer the services for the first of its kind to lead ahead in the race thereby winning the customers heart and meeting their expectations by providing superior services at the comfort of mobility. This has led the operators to look forward for the tie ups with content providers though only a little focus is put upon content development…
Note :
VAS: Value Added Services
ARPU: Average Revenue Per User per month
HSDPA : High Speed Data Packet Access
EDGE : Enhanced Data for GSM Evolution
1 comment:
India is all set to become the second largest Telecommunication market in world with lowest ARPU in world.
Mobile Market in India
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