Survey shows growing importance of value-added services for Asia Pacific mobile operators

MELBOURNE 10 August, 2011   Mobile operators in Asia Pacific expect their revenues from value-added services (VAS) for example mobile payments, to grow from an average 14% of all revenues today to 24% within the next three years, according to an independent survey commissioned by Amdocs in which 120 mobile operator executives participated. The largest growth in VAS revenues is forecast for India, moving from 12% of revenues today to 29% in three years’ time. Additionally, the survey found that 95% of respondents are pursuing mobile payments and most believe their portals will grow in importance over the next three years. Furthermore, 75% are pursuing mobile advertising and search strategies, with 65% reporting their subscribers would be willing to view mobile advertising in return for free content such as mobile apps or entertainment. Operators said their main business drivers for VAS are to provide a better customer experience and secure customer loyalty.

 “Mobile VAS, and particularly mobile payments, are gaining momentum in Asia Pacific and mobile operators believe they constitute a competitive force vis--vis other players in the market such as banks and credit-card companies on the one hand, and social networks, app stores and other service providers on the other”, says Erwann Thomassain, Head of Regional Marketing Asia Pacific, Amdocs. “As mobile operators seek to monetize VAS, Amdocs is there to support them by providing them with solutions for the creation, provision, bundling and billing of these services, as well as solutions for customer support”.

Access the full report on the research conducted by Coleman Parkes, here.

Join the Amdocs tweetchat: “Value-added services – What is the best strategy for mobile operators?” on August 10, at 9am UK, 1:30pm India, 4pm Singapore, by following the #doxchat hashtag on Twitter.

Other key survey findings include:

         Importance of VAS: 62% of respondents say that VAS are either important or very important to their company. In Australia and India, 70% of operators regard VAS to be important while only 50% from Thailand and Vietnam believe VAS services important.

         Australia and India expect greatest VAS revenue growth: In Australia, the current share of revenues from this revenue stream is 23% which is expected to grow to 30% in three years’ time. However, it is in India that the largest expected growth of 17% in VAS is anticipated: From 12% at present to 29% in three years’ time. Furthermore, it appears that mobile operators have an advantage over banks in markets like India and Indonesia where a high proportion of the population is unbanked.

         Popular mobile payments segments: Prepaid top-ups are the most popular form of mobile payments, followed by bill payments, money transfers and billing on behalf of app stores. 

         Anticipated conflict with finance organizations: Only 42% of respondents overall believed operators were bound to engage in conflict with banks and credit-card companies over mobile payments, although responses differed considerably across the selected markets: In Australia, only 25% of respondents agreed there would be conflict, 33% in India, 50% in Thailand and 90% in Vietnam.

About Amdocs

Amdocs is the market leader in customer experience systems innovation. The company combines business and operational support systems, service delivery platforms, proven services and deep industry expertise to enable service providers and their customers to do more in the connected world. Amdocs’ offerings help service providers explore new business models, differentiate through personalized customer experiences and streamline operations. A global company with revenue of approximately $3.0 billion in fiscal 2010, Amdocs has over 19,000 employees and serves customers in more than 60 countries worldwide. For more information, visit Amdocs at www.amdocs.com.

Media Contact:

Michelle Bong
For Amdocs

Tel: +61-422-966-013

E-Mail: michelle_bong@iprimus.com.au