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Soaring Revenue Base through Value Added Services

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The traditional service that telecommunications operators are meant to provide is voice communications. However, there has been increased demand for value added service which is secondary focus of operators that has turned to be a strong source of revenue.
A value-added service (vas) is popular as a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions but, it can be used in any service industry (eg. Web 2.0) for the services providers provide for no cost to promote their main service business. In telecommunication industry on a conceptual level, value-added services add value to the standard service offering, spurring the subscriber to use their phone more and allowing the operator to drive up their average revenue per user (ARPU). For mobile phones, while technologies like SMS, MMS and GPRS are usually considered value-added services, a distinction may also be made between standard (peer-to-peer) content and premium-charged content.
There are about 4 billion mobile subscribers worldwide, out of which 67 million mobile subscribers are Nigerian. Over 350 billion text messages are exchanged across the world every month.
Value-added services are supplied either in-house by the mobile network operator themselves or by a third-party value-added service provider (VASP), also known as a content provider (CP). VASPs typically connect to the operator using protocols like Short message peer-to-peer protocol (SMPP), connecting either directly to the short message service centre (SMSC) or, increasingly, to a messaging gateway that allows the operator to control and charge of the content better.
In the mobile phone market, new models are being rolled out with features targeted at specific user groups. There are feature phones for business people, with fast email services and document editing capabilities. On the other end of the spectrum are multimedia phones, further sub divided into units with advanced imaging and/or audio capability.
VAS applications
Person to Application (P2A) these are SMS messages sent by end users for contests & for seeking other information like news &  updates;  Application  to Person (A2P) are SMS inclusive of service push by enterprise service providers; Also include calls on IVRS for all other services like astrology.
Ringtones : This is inclusive of monotunes, polytunes, truetunes and also includes Caller ring back tones (CRBT).
Entertainment VAS (jokes, Bollywood Ringtones & games); Info VAS ( Information on movie tickets, news, banking account  etc); mCommerce VAS (Transactional services such as buying railway tickets or movie tickets through the mobile phone)    The revenue generation and popularity of these types of VAS revolves around two factors which are perceived value and practical value.
Technology Enablers    
Short Code Provider: these are the companies who own a short code (e.g. 8888, 3456 among others) which is sold to a third party client for some keyword and a specific period).
In the next few years, there is likely to be further specialization as network providers offer package bundles comprising of a phone, customized content, applications and a unique pricing plan targeted for some user groups. For example, one could opt for a package with a multimedia phone with huge storage space for music, digital rights management (DRM) software for sharing music and a usage plan that allows limited free downloads of songs and video.
Markets have traditionally been viewed in terms of supply and demand, in which vendors and service providers create value for which consumers are willing to pay. But in the emerging digital world, it is just as likely to be consumers themselves that create the value. A couple of examples: SMS’s or Short Message Services are perhaps the biggest success that telephone companies have had in persuading users to create their own value. Most recently, SMS-based voting used in competitions like American Idol/Pop Idol have generated large revenues for all stakeholders within a very short time.
The powerful combination of blogging or dissemination of personal content with social networking or "communitization" will have a strong bearing on the features and services that will be provided to users. There is a discernible trend in the use of mobile phones for creating and distributing blogs and video content while on the go.
The ubiquitous nature of mobile phones is ensuring that they play a key role in every major idea of this decade. As mobile phones evolve into versatile platforms for content exchange, telecom operators will be under pressure to deliver new, exciting content to grow their revenue base.
MTN recently has signed a deal with value-added services enabler and content provider IMImobile, to provide enhanced repository of current and globally popular content to 21 markets of MTN over a single platform.
IMImobile would address the local and international content needs of the company providing different flavor of music, news, sports and local contents, bringing online contents and mobile to 130 million users of the company.
The deal will also enable MTN to launch new voice and data services in its regions of operation. IMImobile is expected to earn around $150.2 billion in 2011 from mobile content and services.
MTN, having exclusive global content rights for the 2010 Fifa World Cup, will use the deal to deliver exclusive 2010 Fifa World Cup content to the mobiles of customers.
Expanding VAS
In Nigeria the list of content providers and platforms are growing by the day, some the major providers include, MTech, Cellcast, TaviaTxt, SaveMyContacts, Textnigeria, Entegration Solutions, Cellulant, CellTrust, 3G Reality Centre and A3&O among others, which generate mobile content to deliver value-added services via the GSM network operators. The mobile operators share the revenues equally with these private VAS companies, barring M-Tel, which is yet to develop a relationship with a VAS company.
The main players in the Mobile value added service chain in Nigeria apart from the National mobile operators are the content aggregators. They provide content to mobile operators; perform in-house content development and aggregating contents from other small players. They own the short codes and they have a tie up with multiple operators to ensure subscribers of all operators can access same short codes. Revenue sharing chain percentages will either encourage more independent developers or discourage them from rolling out innovative services that will promote the 3G. As it stands today, if the operators do not radically change the present revenue sharing structures which allows them to retain chunk of the value added services revenue, development efforts might not be encouraging after all.
Growth is stifled in the vas market in Nigeria because National mobile operators are playing safe and concentrating only on mass services for which content is readily available and chances of failure less. Entertainment value added service despite the fact that its practical value is minimal, is popular because of its mass appeal especially to youth segment and it is promoted over mobile commerce and infotainment which has the capacity to create real value for subscribers. Mere deployment of the 3G Networks will not automatically incite content aggregators to start developing contents. Additional investments in supporting infrastructure like in areas of digital map for those going into location based VAS, promises to be one of the leading services in Enterprise solution VAS in Nigeria.
Prevalence of low end mobile handsets is a major factor in the uptake and penetration of advance mobile technologies. Many services are not performing to their potentials despite their usefulness and many others which cannot be introduced. As the mobile markets grows, most new entrants are the low ARPU end users as most big spenders had already been taken up and hence most mobile handset coming on board might not have the features that support advance technologies. Operators worldwide are taking initiatives to collaborate with mobile phone makers to make 3G services available to more people with less entry cost through handset development, logistics and marketing initiatives. Notable among such collaborations is the 3G for all campaign spearheaded by the GSM Association that will reduce 30% from the LG phone that has been chosen.
Emmanuel Okoegwale, mobile value added services expert, said that operators need to focus on Value added services to survive the cut throat competition they are experiencing right now, reduction in voice revenues and to achieve growth forecast. According to him, there are quite a handful of innovative value added services like the Remote mobile phone book back up, by SaveMyContacts, Vehicle tracking systems, ring tone downloads and the highly successful caller Tunes. Caller Tunes has demonstrated that subscribers are ready to adopt a service that offers them an option of personalization. Mobile users always want to carry forward their individuality to their mobile phones.
While the informational and Mobile Commerce are really struggling in the mobile VAS market in Nigeria, entertainment value added services seems to be more popular because they are designed for mass appeal and leisure time usage while mobile commerce is popular in Banking industry but with few users. Simple reason is that subscribers have not just seen or perceived a compelling reason to engage the mCommerce and others. British Broadcasting Corporation reported that Nigerians are leading visitors to its site worldwide with 61% and distantly followed by South Africa at 19%.This is a classic example of usage due to compelling reason.
In other parts of the world, sport and adult contents are the chief revenue earners in the mobile value added service industry. Entertainment VAS seems to be the leading service that is driving the VAS market in Nigeria, this is because entertainment based VAS drive the market both value and volume terms.
As telecommunications sector is bracing up to implementation Number Portability, value added services stand as a major focus and driver of competition for forward looking operators to survive.
 


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Airtel Nigeria Expands Retail Footprint to Strengthen Customer Access Nationwide

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Airtel Nigeria has strengthened its nationwide retail and distribution network as part of its continued investment in enhancing service delivery and making telecommunications and digital services more accessible to millions of Nigerians.

The company’s retail ecosystem comprises more than 4,000 exclusive Airtel shops and over 200,000 retail touch-points nationwide, including partner stores, channel partners and neighborhood agents. This network ensures that subscribers can conveniently easily access SIM registration, device purchases, airtime and data recharge, customer support and other digital solutions.

Commenting on the company’s retail distribution strategy, Dinesh Balsingh, CEO, Airtel Nigeria, said,

“Telecommunications goes beyond the physical infrastructure, it is important that we are able to reach people where they live and work. That is why we continue to invest in a strong retail and distribution ecosystem that enables us to bring Airtel closer to our customers while delivering a consistent, high-quality experience wherever they are.”

According to Joypratip Sengupta, Director, Sales and Distribution, Airtel Nigeria, the company’s distribution network plays a vital role in ensuring seamless service delivery.

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“Our retail network is designed to ensure that our services reach customers efficiently. It is a combination of efficient logistic systems, strong partnerships and local engagement that enables us to consistently meet the needs of our customers across the country,” he said.

The strengthened distribution strategy complements the company’s ongoing investments in network infrastructure and digital innovation, recognising that customer proximity remains a critical driver of service excellence and digital inclusion.

In addition to improving customer access, Airtel’s extensive retail ecosystem continues to create economic opportunities for thousands of entrepreneurs, distributors, retailers and small business owners who form an integral part of the company’s value chain.

As demand for accessible, interconnected digital services continues to grow across Nigeria, Airtel remains committed to investing in improving its service delivery and ensuring that every subscriber enjoys quality service.

 

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Kaspersky Survey Highlights the Need for Smartphone Security

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Kaspersky’s latest global survey shows a change in how people go online: 60% of survey participants from the Middle East, Turkiye, and Africa (META) region now claim their smartphone is the main device they use to access the Internet, pushing the PC into a secondary role.

But as the amount and sensitivity of data stored on these phones keep growing, cybersecurity experts warn that users’ security habits aren’t keeping up.

According to the survey* 60% of respondents from the META region consider a smartphone their primary device for accessing the Internet. The most active smartphone users are representatives of Gen Z, with 67% of all global respondents aged 18-28 choosing a mobile phone as their main device.

With mobiles as the full-fledged rivals of computers in accessing the Internet, the amount of important data stored on them has also increased significantly. Personal photos and videos are leading the pack. 60% of users in the META region store visual memories on their devices. Close behind are contact details (51%), text messages and chats history (45%) and important personal documents such as IDs and passports (43%).

At the same time, a substantial portion of users in the META region keep work‑related data on their smartphones (37% emails, 22% calendars and 17% even store access to corporate systems), blurring the line between personal and professional realms.

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Financial credentials and login details appear on 40% of devices, while emerging categories like AI chat histories (30%) and gaming accounts (26%) signal new types of personal data stored on personal devices.

“Now our smartphones serve as full‑featured assistants that touch every aspect of our lives. The data we entrust to them goes far beyond photos, phone numbers or text messages. Consequently, the main question is no longer “what we store,” but “how we protect it,” requiring security to become as integral to the device as the data it carries,” comments Anton Kivva, cybersecurity expert at Kaspersky.

Three keys to mobile data security

To help users navigate this new digital reality safely, Kaspersky experts have issued a three-step security plan:

  1. No data should live on your phone only

A smartphone should never be the sole repository for any type of information. While having everything at your fingertips is convenient, accidental deletions, loss or hardware failure can make recovery impossible without reliable backups or cloud sync.

The most sensitive data like passwords, ID or financial details requires special attention and preferably be kept in a protected format. Use a dedicated security solution like Kaspersky Password Manager, which apart from securely keeping credentials and bank cards, has a special secret vault functionality aimed at storing important documents, for example, scanned Passports/IDs and PDF files, addresses and notes. Thanks to the cross-device synchronisation it allows access to the data from any gadget.

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  1. Create a guard against digital threats

In Q1 2026 only, more than 2.67 million attacks utilising malware, adware or unwanted mobile software were prevented and more than 306,000 malicious installation packages were discovered.

Mobile devices require the same cyber protection as PCs. Kaspersky experts recommend cybersecurity solutions such as Kaspersky Premium that provide comprehensive protection – starting with scanning apps for potential threats upon installation, and using AI‑driven features to block malicious and phishing links in real time and prevent data or money losses, among many other security layers.

  1. The “what if” scenario planning

Phone loss always occurs unexpectedly, but a few proactive steps can dramatically reduce its impact:

Turn on location services. Both Android and iOS include built-in tools that can locate a lost phone and, if needed, wipe its data remotely. Kaspersky for Android app activates this capability through the Where Is My Device feature.

  • Enable automatic backups.Regular backups ensure that photos, videos, documents, contacts and other vital data can be restored even if the device is lost or stolen.
  • Configure instant auto‑lock.Setting the phone to lock immediately after the screen turns off keeps it inaccessible to thieves or cyber‑criminals when you’re not using it.
  • Keep the device physically safe.In public spaces, never leave your phone unattended or within easy reach, avoid placing it on tables, in back pockets or any other vulnerable spot.

“We often underestimate how much valuable information we keep on our mobile devices and how vulnerable that data truly is. Ask yourself: When was the last time I backed up my photos or notes? What’s my plan if my phone goes missing? Do I verify links before I click them? While most users automatically think of security software for their computers, phones lag behind. It’s time to give your everyday digital companion the same robust cyber‑protection it deserves,” adds Anton Kivva, cybersecurity expert at Kaspersky.

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Why Africa’s Top ICT Ministers Are Gathering in Abuja This Week

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Nigeria will host telecommunications, Information and Communication Technology (ICT) and digital economy ministers from across Africa for the 7th Ordinary Session of the African Telecommunications Union (ATU) Conference of Plenipotentiaries (CPL-26), scheduled for July 23 to July 24 in Abuja.

 

The conference, the highest decision-making body of the ATU, is expected to bring together ministers, regulators, industry leaders, development partners and other stakeholders from the Union’s 52 member states to deliberate on Africa’s digital and telecommunications agenda for the next four years.

A statement by the organisers said delegates would adopt the Union’s strategic direction, approve its 2027–2031 budget and work programme, elect a new Secretary-General and determine the composition of the Administrative Council.

The conference will also harmonise Africa’s common positions ahead of the International Telecommunication Union (ITU) Plenipotentiary Conference scheduled to hold later this year in Doha, Qatar.

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The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, described the conference as a significant milestone for Africa’s digital future.

“Nigeria is honoured to host the 7th Ordinary Session of the ATU Conference of Plenipotentiaries at a defining moment for Africa’s digital future.

“As countries across the continent accelerate digital transformation, it is increasingly important to strengthen regional cooperation, develop common positions on emerging technologies, and create enabling environments that attract investment, build digital talent and expand meaningful connectivity.

“Our role as host reflects the commitment of President Bola Ahmed Tinubu to building an innovation-driven economy while strengthening African cooperation on digital infrastructure, technology governance, skills development and investment,” he said.

One of the major highlights of the conference will be a ministerial dialogue on “Achieving Africa’s Meaningful Connectivity,” jointly organised by the ATU and the GSMA.

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The dialogue will explore practical strategies for expanding affordable, reliable and quality connectivity across the continent, with emphasis on infrastructure investment, service quality, affordability and ensuring that digital access delivers tangible economic and social benefits.

Also speaking ahead of the conference, the Secretary-General of the ATU, Mr John Omo, said the meeting would provide member states with an opportunity to strengthen the Union’s capacity to drive Africa’s digital ambitions.

He said the decisions to be taken in Abuja would shape the ATU’s ability to support national priorities, sustain Africa’s participation in global telecommunications forums and respond effectively to emerging technological developments over the next four years.

The conference is expected to conclude with the adoption of the Abuja Declaration, which will provide governments, regulators, industry stakeholders and development partners with a common framework for advancing Africa’s digital transformation agenda.

According to the organisers, hosting the conference underscores Nigeria’s commitment to regional collaboration and reinforces the country’s growing leadership in digital policy, technology governance and investment promotion across Africa.

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