Value Added Services

sunandaC

Sunanda K. Chavan
Value Added Service (VAS) is that service which is not part of the basic voice offer and is availed off separately by the end user. It is provided by telecom service providers. These services are used as a tool for differentiation and allow the mobile operators to develop another stream of revenue.


various Value added services:-

Here is a list of some Value Added Services provided by the telecom operators to the end users.

- News- e.g. Business, sports, politics etc.

- Finance- e.g. Share market, foreign exchange etc.

- Entertainment- e.g. Games, jokes, films etc.

- Travel- e.g. Railway, airlines etc.

- Download- e.g. Caller tunes, wallpapers etc.

- Astrology- e.g. Horoscope

- Contest- e.g. Reality shows

- MMS- e.g. Picture messages, video clips etc.


- E-mail- e.g. SMS, e-mail etc.

- Music- e.g. Ring tones

- Cricket- e.g. Score, video clips etc.

- GPRS- e.g. Internet, chat etc.


- Call Alert- e.g. Missed call alerts when mobile is switched off or busy

- Health- e.g. Health tips, beauty tips etc.

- M-Commerce- e.g. mobile transactions like mobile banking

- Others- e.g. movies, music etc.



As per COAI, in the year 2006-07, the income from VAS out of total income of service providers

was 10%. Out of that, 57% was from SMS, 19% was from other VAS, 7% from ring tones, 6% from caller line identification, 6% from content downloads and 5% from GPRS. Normally, service providers make money of around 10-14% as VAS from total income.


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).


VASPs typically connect to the operator using protocols like Short Message Peer-to-Peer Protocol (SMPP), connecting either directly to the Short Message Service Centre (SMSC) or, increasingly, to a messaging gateway that allows the operator to control and charge of the content better.


There are many national and international investors are ready to invest in this segment of telecom market.
 
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