What are mobile value-added services?

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In the telecommunications industry, “value-added mobile services” is a term applied to any benefits – or non-essential services – offered in addition to the standard service. Voice calls and fax transmissions are typical examples of standard content provided by a mobile network operator. Any options a customer chooses beyond these basic features fall under the category of value-added services. Common examples of these additional selections include advanced messaging services such as Short Message Service (SMS) and Multimedia Messaging System (MMS), as well as wireless data support options.

Value-added mobile services are achieved in two ways. They can be purchased from the mobile network operator with which a customer is subscribed. They can also be purchased through a Value Added Service Provider (VASP), an intermediary content provider that sells additional services.

All value-added mobile services have the same distinctive qualities. First, they are not basic service offerings, but are additional options that expand a user’s communication capabilities. From a technical point of view, they can work alongside the core services or simply function as an additional feature that doesn’t detract from the standard services. When a value-added service is provided as an adjunct to top offerings, they often charge a premium price.

These services aim to add value to a telecom company’s existing service menu. The aim is not to replace core services, but to enhance their capabilities. When a customer uses a value-added service on a regular basis, he or she is also using the mobile network operator’s core services, thus increasing profits for both the mobile network company and the VASP.

While traditional value-added mobile services include many advanced messaging and wireless data carrier technologies, they can also include voice-based selections. A typical voice-based option is PTT. PTT operates through cell phones in the same way that a walkie-talkie works. When a client is within a specified range, he or she can communicate with another person on a similar phone by transmitting the voice using half-duplex communications, that is, while one person transmits, the other receives the communication. Many mobile VAS providers offer this option.

Another common example of value-added mobile services is location-based billing. With this structure, a telecom operator sets specific prices for the various call zones from which a customer can make calls. Location-based billing has proven to be a beneficial option for customers, network operators and VASPs. Customers can take advantage of special calling rates in various locations, mobile operators profit from any fees that may be gained from additional usage, and VASPs generate revenue by offering the service.

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