The Value Chain Proceedings…

Now that I have described all the players present in the VAS business arena, I am just trying to put some light on the relationships they share. I would also try to highlight the interdependencies among them and the information flow as I understand it happens.

There is a constant innovation happening in the mobile space with all the players in the value chain trying to reverse or forward integrate. They are able to move up and down the chain but can’t replace the network operator as the customer is still owned by them. This can only happen if the retail strategies by VAS players come out to be successful.

The ongoing major movements that I understand are happening are:

1. The content owners and developers are moving towards the aggregation playfield
2. The aggregators are starting to own the content and develop applications around them
3. The technology enablers and VASP’s are beginning to won and aggregate content as well and are constantly raising the bar for each other.
4. Teclo’s, technology enablers and VASP’s are looking forward to replicate the web experience on mobile thereby the focus of telco’s is moving towards data revenues.
5. Handset Manufacturers are tying knot with the content and application providers providing added value for the subscribers.
6. Telco’s have started to get in direct relationships with content right owners and promoting the uptake.
7. New entities are adding up in the value chain with new ideas to explore the subscriber needs. Mobile advertising, retail and mobile TV are just to name a few here.

All these movements (and many more) are leading to constant innovation in the industry and making it a better place for the subscriber as he is offered so many options. This has also led to many application and services that are offered to customer which he did not feel he needed.

On the application development and offering side, there are a couple of means in which they appear in the market. Either the operator profiles the customer demands or the VAS providers come up with a new idea.

1. Operator Pull (Showcasing customer requirements)
2. VAS provider push (Showcasing Industry Innovation and movements inside the industry)

The operator pull is based on analyzing the customers need and pulling the other player to offer those services whereas the second approach is more focused on offering new services and content and ensuring their uptake by the customer.

I would be discussing them in the next post. Keep visiting…

Jatin Madan
jatinmadan@aol.in