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Mobile VAS Accounts for 30% of Brazilian MNO's Service Revenue, Highest Growth Seen in Mobile Internet VAS

View of Botafogo Bay at night, Rio de Janeiro, Brazil.

Acision, the global leader in mobile messaging services, last week announced the results of its twelfth research report, MAVAM Brazil 2014 (Acision Monitor of Mobile Value Added Services (VAS)), which analyzes the evolution and usage trends of VAS in Brazil with special focus on Enterprise Messaging.

According to Acision, Brazilian operators saw strong growth in their VAS segment which includes SMS, MMS, mobile internet and other content. Revenues generated from this segment grew 21% compared to the previous year, surpassing R$4.36 billion (US$ 1.95 billion) and accounting for 30% of mobile operators’ total mobile service revenue. Acision noted that the mobile internet experienced that biggest growth within the VAS segment, making up 63% of all VAS net sales in the second quarter of this year at R$2.7 billion (USD1.23 billion), marking a growth of 31% compared to the same period last year.

MAVAM Brazil found that enterprise messaging is one of the popular VAS service in the region. The report found that 71% of smartphone users use their devices to search for information about products and services, with 69% stating that they receive and read SMS from companies, stores or brands that are sent to their Smartphones. Mobile applications that facilitate monetary transactions are among those with the highest penetration (46%), while applications used to receive updates from brands or companies have a lower penetration (44%).

With more and more smartphones in circulation in Brazil, and with mobile internet services more accessible, it is understandable that users migrate to broadband-based OTT messaging services, especially as they are perceived as free. This, in turn, means overall VAS revenue is increasing as more data packages are being sold as part of post-paid contracts, which grew by 33% over a year, resulting in increased usage of mobile internet services and traffic. It also demonstrates that all-types of messaging usage continues to grow, and highlights SMS as still essential , being the most frequently used service of all mobile users and still in the top three messaging platforms even amongst smartphone users.

-             Fatima Raimondi, Acision’s Senior Vice President and General Manager for Latin America   

 

By Rosino (Flickr), via Wikimedia Commons

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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