The VAS & App Ecosystem in the Mobile Broadband Era

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Unstructured supplementary service data “The VAS & App Ecosystem in the Mobile Broadband Era” – BY SPENCER MANGUWA

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A presentation by Econet Head of VAS, Spencer Manguwa at the Broadband Forum 2014 conference in Harare http://broadband.techzim.co.zw

Transcript of The VAS & App Ecosystem in the Mobile Broadband Era

Page 1: The VAS & App Ecosystem in the Mobile Broadband Era

Unstructured supplementary service data

“The VAS & App

Ecosystem in the

Mobile Broadband Era”

– BY SPENCER

MANGUWA

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PRESENTATION OVERVIEW

Background

Review –VAS ARENA

CASE for VAS

MVAS Ecosystem

Current Trends

Potential pitfalls

Role of MNOs

3rd Party engagement

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BACKGROUND

• Mobile Value Added Services (MVAS) have assumed significant importance in recent

times due to the rapid growth in wireless subscriber base.

• They have enhanced the utility of mobile phone as a powerful medium to deliver

information viz., News, Entertainment, Advertisement, Music, Games, Commerce,

Education and Health, Farming etc.

• More than 90% of consumers have their mobile phone within arm’s reach, making it

clear that mobile’s “power of the personal” must be at the core of the connected

experience.

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REVIEW – Mobile & Data Penetration

• Mobile penetration now at 101% in

• 39.9% have access to data(rest of Africa averages - 21% of mobile subscribers use Smartphones; 59% use basic feature phones; 16% use advance feature phones)

• Developed Countries have 84% penetration

• Globally, mobile-broadband penetration will reach 32% by end 2014 – almost double the penetration rate just three years earlier (2011) and four times as high as five years earlier (2009).

• Mobile broadband remains the fastest growing market segment, with continuous double-digit growth rates in 2014.

• Mobile broadband is growing fastest in developing countries, where 2013/2014 growth rates are expected to be twice as high as in developed countries (26% compared with 11.5%). SOURCE : ITU

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CASE FOR VAS!!!!

Every moment is MOBILE

and is aimed at exploring how mobile

brings solutions not only to address our

personal challenges but also national

and global challenges.

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SOLUTION - The Cure to Poverty Is Connectivity and Individual Empowerment

MVAS is the next wave. The three levels of service maturity are:

1. Basic MVAS services

are most often informational, and generally do not offer transactional or interactive

capabilities.

2. Enriched services

apply the connected and remote nature of mobility to extend the reach of a service

and strengthen its utility.

3. Transformational services

apply the principles of mobility to fundamentally reinvent the ways in which services are

delivered and consumed.

Mobile as a : Revenue Channel, CRM Channel, Productive tool and Entertainent.

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MVAS – ECOSYSTEM STAKEHOLDERS

• A network that will lead to generation of new “digital entrepreneurs” that will work

towards building solutions not only to address our national challenges but also

global challenges.

• This ecosystem shows how stakeholders impact the creation of specific mobile VAS

products and helps frame different implementation models.

Content/ App OwnerContent/ App Aggregator

Technology Provider

(SDP)

Network Operator

Customer

Handset Manufacturer

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FOUR MAJOR PILLARS

TechnologyAccessDevices

Infrastructure

Content

The use of VAS is largelyDependent on the featuresAvailable in the handset

APPS,SMS, IVR, 3G & USSD platforms used to deliver VAS to the consumer

Growth of VAS market Dependent on relevant contentAvailable to consumers

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CURRENT VAS TRENDS

MERGERS & TAKE-OVERS

• Facebook acquires Whatsapp in $19bn deal

• Apple buys Beats By Dr Dre for $3bn

• Twitter reportedly mulling Sound cloud purchase.

• Spotify acquires music data firm The Echo Nest

SIGNIFICANCE

• Google launching Android TV – Open up opportunities for developers, content

providers to exploit and distribute streaming services to the television

• SAMSUNG releases own Operating system

The benefits of value added services -Drives broadband usage, Triggers

entrepreneurship/employment generation

THE FUTURE IS APPS & CONTENT!!!!

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THE FUTURE OF MVAS

With the advent of 3G and even 4G services worldwide, and the additional bandwidth

on offer, several new trends are emerging.

There is a shift from traditional VAS services to new generation services and

applications. When 3G Flies, MVAS will soar.

Govt. Services VoIP/IM TeleMed/TeleEdu

Enterprise services Video services Video Calling

Mobile Commerce Application Stores Music Services

Mobile TV Gaming Location Based Services

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THE FUTURE OF MVAS cont…

• It is expected that 3G/4G deployments will accelerate, smartphone and tablet

penetration will grow and MVAS service maturity moves from basic to enriched and

transformational solutions.

• The Zimbabwean MVAS market will experience dramatic growth.

• The Cure to Poverty Is Connectivity and Individual Empowerment –

Customers are willing to pay if the content is right.

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STRATEGIES MNO’s –POTENTIAL PITFALLS

• Use of outdated data - real-time data using deep-packet inspection, operators will be better able to understand what is happening on their network.

• Real-time network analytics is important especially with the rise of over-the-top video services,

• When delivering content, the most important step for the operator is to understand the quality of user experience of the OTT service,

• Without proper understanding of the network traffic, operators will not know what went wrong.

• To understand their network, operators need the correct tools for measuring, reporting, analyzing and policy

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MNO’s as VAS Enablers

Role of operators:

• Innovation in services and applications • Content and applications that drive usage• Product simplicity and Quality of Service • Increase spread of broadband infrastructure • Handset upgrade/customization • Customer Experience and customer support • Aggressive marketing • Partner Relationship • Right platforms and systems• Product and service support • Technical expertise • Service Level Agreements

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LET US BE PARTNERS!!!!!

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PARTNERSHIP REQUIREMENTS

• Detailed profile of your organisation

• The clearly distinct roles and obligations of each of entities in a project.

• Detailed product description and design

• The cost of the solution including any recurring license fees or a proposed model

• Technical specifications of the Hardware and Software to be used.

• The Technical model including the envisaged connection schematic.

• Revenue projections with specific reference as to how each organisation will be profitable

• How the initiative will be marketed with a clear marketing plan and the marketing budget

• Reference sites where a similar or comparable initiative has been successfully implemented.

• Technical support plan for the service

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Processes for Implementation of Mobile VAS

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CONCLUSION

• There is enough space for everyone in the VAS arena.

• There are endless opportunities and

possibilities for those ready to seize them.

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VALUE ADDITION???????