VAS as an effective tool for increasing ARPU
16 March 2010 |
The decrease in revenues from voice services can be traced both in international and Russian telecom business. Operators are forced to somehow compensate for revenue fall.
Today, one of the ways to compensate for the decrease in revenues is the intensified use of value-added services and mobile Internet by subscribers. As a rule, VAS and mobile Internet do not contribute to voice ARPU growth, however there are exceptions. Such unique VAS attract intense interest on the international market and are not used in Russia. Why?
More than a year ago MegaFon launched the “Kaleidoscope” service that enabled informing subscribers of events, weather forecasts, new services, rate plans etc. The service was unobtrusive – a subscriber received one to three messages per day via each of the topic channels, and only one channel was activated by default. This helped enhance subscriber loyalty both to the operator and the service. However, the functional features of the service based on the Bercut solution actually have larger potential. The service is able to attract subscribers to existing services and stimulate voice calls, being at the same time a mobile advertising tool.
Vitaly Balanda, Bercut Strategic and Product Director, comments on the solution operation in MegaFon: “Telecom companies choose this or that solution depending on current needs and business development plans. This service is user-friendly, which enables the operator to increase revenues and enhance subscriber loyalty. It is expected that the operator will start exploiting all the capabilities of our solution soon, and this will generate maximum profitability from the service. The solution has already made a good showing on the Middle East market and aroused interest at MWC 2010”.
The solution can bring considerable additional revenue to the operator due to its effectiveness and boosting subscriber loyalty.
The actual and potential revenue from the service sometimes differ greatly. To eliminate the difference, operators need to consistently manage the VAS portfolio and regularly carry out VAS audits. However, these are the subjects of other articles.
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