Value Added Services – Profiling based on Value Chain…

I have spent a lot of money and time downloading ring-tones, configuring music for my CRBTs, hunting for newer mobile games, et al. There are a lot of ways in which we download the content to our mobile handsets or use a plethora of other VAS services.

In this post I am trying to put across new light by segregation them in accordance to the similarity of the value chain and thereby revenue share agreements pertaining to services.

I have tried to broadly segregate the services in two sets – Content Based and Content Independent.

Content Based can be further segregated into:

1. Download Content – The applications that allow downloading content on the mobile hansets like ringtones, wallpapers, etc.
2. Experience Content – The applications that enhance the customer experience by using content like Back Ground Music, CRBT, etc.

Content Independent Applications are the ones that are closely integrated with the operator’s network and do not require content. These services have a higher dependency on the subscriber data rather then content delivery or experiencing. Services like Missed Call Alert, Wake-up alarm services etc are the applications in this category.

Although all the downloadable content today is available in the form of subscription packs which is like bundled offering for duration of time thereby subsidizing the costs involved. There is much more to subscription packs than just the content. I would try and explore the subscription model as well in a later post.

I would be using a few services as examples that are selling like hot cakes today. They have been positioned greatly with the subscribers and can be delivered in various manners leading to maximum penetration of these services.

1. Download Content
   1. Astrology
   2. Bollywood ring-tone and wall papers
   3. Cricket
2. Experience Content
   1. Ringback Tone
3. Content Independent
   1. Missed Call Alert
   2. Voice Mail

I will pick each one of them individually and discuss the various business models that exist today and the future evolution of the same in my next post.

Jatin Madan
jatinmadan@aol.in