Value Added Services (VAS) were projected to be one of the unique competitive advantage one telco could have over the other. The service stream was constantly pipelined as a major push factor that could lead to more number portability and higher revenue market shares.
The advent of 3G and higher focus on internet usage for both information and entertainment has put less pressure on VAS. It cannot be doubted, however, that VAS still provide a significant revenue contribution and telco’s are trying to lure customers through VAS service and integrate internet usage with VAS into one sturdy bundle.
Major VAS Domains and Services offered by each telecommunication company:
While researching the VAS portfolio’s of various telco’s, it became evident that no brand in particular offers a unique VAS advantage over other competitors since nearly all VAS portfolios are similar with marginal differences in service dynamics.
However there are clearly some telco’s who are investing in providing more services than others. There are two ways to analyse this trend:
- Companies like Mobilink know exactly where revenue is coming from and tend to focus on those services only rather than have a wide variety of services that no one ever subscribes to.
- Companies like Ufone are providing a variety of options to their customers and generating higher net revenue due to the vastness of the portfolio.
Based on a detailed study of the services, Ufone has the most detailed service pool available. Furthermore each service has extensive details provided about it which allows the consumer to make an informed choice. Mobilink and Zong lead the polls with the most simplistic, yet relevant, set of services available. Warid and Telenor both seem to have a long way to go before an average consumer can judge their VAS strategy.
The below mentioned services require a special shout out:
1. Shaadi Portal- Warid / Rishta Point Ufone/ Zong Shaadi Portal
For an average price of Rs 3 + Tax Warid Telecom, Ufone and Zong now PROMISE to find your perfect match for marriage.
2. Tele Doctor – Telenor Pakistan
The service aims at providing medical advice on health issues however for the most part the medical service representative will advise you to visit a “real doctor”. This is a perfect example of a service which made waves with the concept but completely flopped in terms of execution.
Telenor’s disclaimer for the service is given below.
Medical Advice
“The Services contain information on many medical topics. Telenor takes no responsibility for the adequacy, accuracy or efficacy of the information provided. The medical information provided in the Services is of a general nature and cannot substitute for professional medical advice, diagnosis, or treatment. Subscribers are recommended to seek the advice of their physician or other qualified health provider with any questions they may have regarding a medical condition. This Service does not recommend or endorse any specific tests, physicians, products, procedures, opinions, or other information that may be mentioned in the Services.”
Based on the disclaimer I am really confused as to what this service does other than charge the customer Rs 10+ Tax.
3. Zong Prong
Zong’s very own take on Twitter. In summary its a twitter feed for your contact list only, constructed via a string of messages. Based on the demographic the company is targeting, this should be a winner service on the portfolio till the consumers graduate to using the actual Twitter app.
4. Ufone Music VAS section
It’s nothing short of the word exceptional. Very well designed and executed. The Ufone team has not only understood the market demands but also flawlessly executed the concept into a grand design. Among the most interesting services available are:
- Ufone Song Catcher: A local take on Shazam and other such apps where you can search for songs without using the internet.
- taazi.com: Ufone in collaboration with Taazi.com is providing Pakistan’s first web-based platform that allows emerging and seasoned musicians a chance to showcase their talents and retain intellectual property rights. It is also one of the first major anti-piracy initiatives in the country which awards 60% sale royalties to the artist as opposed to the normal 25%. See more here.
All in all, there is no clear winner or loser when it comes to VAS in Pakistan. However we are yet to see to how the telco’s will tap into the potential this portfolio has with the advent of 3G integration. MY forecast – the creation of comprehensive company specific application stores.
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