BOSTON-The success of wireless value-added services depends on the region where the services are being offered, according to a Yankee Group report on value-added services, including call management, voice mail, advanced messaging, personal number services and short message service.
Of the four key regions studied-Asia-Pacific, Europe, Latin America and the United States-European wireless carriers showed the most innovation in developing and offering new value-added services. The Yankee Group said more than 60 licensed wireless operators in Europe are using value-added services as a point of differentiation.
European carriers also are beginning to offer standardized feature sets, such as call management and voice-mail functions, which opens the door for more advanced VAS adoption, said the report.
The Asia-Pacific region is about one to two years behind Europe in VAS deployment and penetration, said the Yankee Group. The wireless market has remained strong despite the economic crisis there, and about 40 percent of all new wireless subscribers worldwide live in the region. The number of wireless operators in Asia has doubled to 115 from five years ago, and increased competition has resulted in an emphasis on value-added services, said the firm.
Latin America offers the most opportunity for VAS growth, with annual subscriber growth expected to reach 41 percent during the next several years, says the report.
In the United States, several obstacles have curbed the growth of value-added services, including multiple digital standards, shortcomings in billing systems and the predominance of analog networks, which don’t provide for digital VAS functionality, states the report. The average penetration rate for value-added services in the United States has increased from 10 percent last year to 18 percent today, despite the obstacles.
Overall, worldwide growth of operator revenue from value-added services offerings will increase from a current $1.9 billion to $25 billion in 2003, said the Yankee Group.
“Our research shows that VAS offerings continue to proliferate and evolve throughout the world, and we expect VAS revenues will become a greater percentage of carriers’ revenues in the years to come,” said David Berndt, program manager of wireless and mobile communications at the Yankee Group. “Competitive pressures are forcing carriers to improve their market segmentation and enhance the value of VAS for their customers.”
