Telecom
Soaring Revenue Base through Value Added Services
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.
Airtel Nigeria has secured a fresh 10-year renewal of its spectrum licence from the Nigerian Communications Commission (NCC), reinforcing the telecom operator’s long-term commitment to expanding broadband connectivity and improving digital access across the country.
The renewed licence covers Airtel’s spectrum holdings, which are critical to the delivery of voice and high-speed data services, providing regulatory certainty for continued investments in network expansion, capacity upgrades and improved customer experience.
According to the company, the renewal underscores confidence in Nigeria’s telecommunications sector and will support its ongoing efforts to bridge the country’s digital divide by extending quality connectivity to more underserved communities.
Sunil Taldar, chief executive officer, Airtel Africa, said the renewal provides the company with the confidence to continue investing in Nigeria’s digital infrastructure.
He said, “The spectrum renewal reaffirms our long-term commitment to Nigeria, our largest market. It gives us the certainty required to continue investing in network expansion, improve service quality and accelerate digital inclusion for millions of Nigerians.”
Taldar added that Airtel remains focused on expanding broadband access and supporting Nigeria’s digital economy agenda through sustained investments in telecommunications infrastructure.
He further said, “We appreciate the Nigerian Communications Commission and the Federal Government for their continued support in creating an enabling environment for investment. We remain committed to delivering reliable and affordable connectivity while contributing to Nigeria’s socio-economic development.”
Meanwhile, Industry observers said the licence renewal removes regulatory uncertainty and allows Airtel to pursue long-term capital investments, including the expansion of 4G and 5G networks, as demand for mobile data and digital services continues to grow across Nigeria.
The renewal comes as telecom operators continue to invest heavily in broadband infrastructure to meet rising data consumption and support government efforts to achieve Universal digital access.
Furthermore, It also aligns with the NCC’s objective of ensuring efficient spectrum management while encouraging sustained private sector investment in the country’s telecommunications industry.
Telecom
GSMA Supports Abuja Declaration on Meaningful Connectivity for Africa, Joins Partners to Launch ATLAS Umoja
The GSMA supports the Abuja Ministerial Declaration on Meaningful Connectivity for Africa by Ministers and Heads of Delegation at the African Telecommunications Union (ATU) Conference of Plenipotentiaries (CPL-2026), describing it as an important milestone in strengthening Africa’s digital future through evidence-based policy, investment and regional collaboration.
The Declaration commits African governments to advancing policies that promote meaningful connectivity, digital inclusion, technology-neutral regulation, resilient digital infrastructure and locally relevant digital services. It also reinforces the importance of collaboration between governments, industry and development partners to close the continent’s connectivity and usage gaps.
Throughout the conference, the GSMA has worked alongside governments, regulators and industry leaders to support these shared ambitions through practical policy engagement, evidence-based research and new collaborative initiatives designed to accelerate Africa’s digital transformation.
Speaking during the ATU-GSMA African ICT Regulatory Leaders’ Forum, policymakers and regulators explored how stronger evidence-based regulation, greater regulatory harmonisation and future-ready policy frameworks can create an enabling environment for investment, innovation and sustainable digital growth across Africa. Drawing insights from the GSMA’s Digital Africa Index, participants also examined future-ready approaches to satellite regulation, highlighting how technology-neutral licensing frameworks can support innovation while extending connectivity to underserved communities.
Caroline Mbugua, Senior Director, Public Policy, Africa, GSMA, said: “The Abuja Ministerial Declaration sends an important signal that African governments share a common vision for delivering meaningful connectivity through modern, evidence-based and investment-friendly policy. Its emphasis on digital inclusion, technology-neutral regulation, resilient infrastructure and stronger regional collaboration reflects the practical policy foundations needed to accelerate Africa’s digital transformation.”
Launching ATLAS Umoja AI
Supporting the ambitions set out in the Abuja Declaration, the GSMA, Nigeria’s Ministry of Communications, Innovation and Digital Economy, Togo’s Ministry of Digital Economy and Transformation, Kenya’s Ministry of information, Communications and the Digital Economy, Namibia’s Ministry of Information and Communication Technology, Benin’s Ministry of Digital Transformation and Innovation, Awarri, Zindi, Pawa AI and Mozisha today announced ATLAS Umoja AI –a new pan-African initiative to strengthen collaboration on African language AI.
Designed to complement national AI programmes, ATLAS Umoja will bring together governments, industry and researchers to share expertise, datasets and best practice, helping develop trusted, scalable AI that better reflects Africa’s languages, cultures and development priorities. The initiative aims to accelerate innovation, attract investment and scale African language AI across the continent.
The launch builds on the momentum of the newly established AI for Good Global Commission. Ministers from Nigeria, Namibia and Togo, who serve on the Commission, have committed to support Africa Umoja, demonstrating how African leaders are turning global ambitions for trusted and inclusive AI into practical regional collaboration.
Angela Wamola, Head of Africa, GSMA, said: “Africa’s AI future must reflect Africa’s own languages, communities and development priorities. ATLAS Umoja brings together governments, industry, researchers and innovators to build African language AI at scale. By making AI and digital services available in the languages people speak every day, the initiative will help tackle two of the biggest barriers to internet adoption – digital literacy and locally relevant content – supporting efforts to close Africa’s usage gap and expand meaningful connectivity across the continent.”
Dr. Bosun Tijani, Honourable Minister of Communications, Innovation and Digital Economy of Nigeria said:“Artificial Intelligence will be a defining technology for Africa’s future, but its benefits must be built on our own languages, cultures and knowledge systems. Nigeria is proud to have taken the first step through N-ATLAS and is equally proud to see that vision evolve into the continental ATLAS Umoja AI.
“By working together with governments, researchers and ecosystem partners across Africa, we can build AI that is more inclusive, locally relevant and accessible to millions of people, while strengthening Africa’s digital sovereignty and creating new opportunities for innovation, education and economic growth.”
Silas Adekunle, Founder & CEO, Awarri added: “Awarri is proud to support The ATLAS Umoja AI and contribute lessons from N-ATLAS, which has demonstrated what is possible when African language data, local technical talent and practical AI applications are brought together. This is an important opportunity to help build AI systems that work for African languages and communities.”
Celina Lee, CEO & Co-Founder, Zindi concluded: “Africa’s AI future will be built by the people who best understand its languages, cultures and communities. Through ATLAS Umoja AI, we have an opportunity to empower local researchers, data scientists and developers to solve meaningful challenges, strengthen national AI capabilities and ensure African language AI is developed by Africans, for Africans.”
Alongside the launch of ATLAS Umoja AI, the GSMA continued discussions with policymakers at the ATU Conference on future-ready regulatory frameworks, including satellite connectivity, spectrum policy and technology-neutral licensing.
Drawing on the GSMA Satellite Regulatory Playbook, discussions explored how modern regulation can encourage investment, expand meaningful connectivity and support the ambitions of the Abuja Declaration.
Together, the Abuja Declaration, ATLAS Umoja and continued collaboration between governments, regulators and industry represent an important step towards expanding meaningful connectivity, accelerating digital inclusion and supporting Africa’s digital transformation.
Samsung has unveiled its most advanced foldable smartphone lineup yet, the Galaxy Z Fold8 Ultra, Galaxy Z Fold8, and Galaxy Z Flip8. The tech conglomerate now sets a new benchmark for premium mobile innovation.
Konga
Nigerian customers can now pre-order the new devices on Konga, Samsung’s trusted e-commerce partner, and stand a chance to receive Samsung gift items worth up to ₦1 million, making this one of the most rewarding smartphone launches of the year.
Designed for productivity, creativity, and everyday convenience, the new Galaxy Z series introduces Samsung’s most refined foldable experience to date.
The Galaxy Z Fold8 Ultra combines an expansive display with AI-powered productivity, a powerful 200MP camera, an ultra-thin design, and enhanced durability for users who demand the very best.
The Galaxy Z Fold8 delivers immersive entertainment and seamless multitasking in a lighter, wider form factor, while the Galaxy Z Flip8 elevates self-expression with its sleek design, smarter FlexWindow, and intelligent Galaxy AI features for effortless interaction on the go. Powered by Samsung’s latest AI experiences, the new devices redefine how users create, communicate, and stay productive.
The availability of the new Galaxy Z Fold8 series on Konga further reinforces the long-standing partnership between Samsung and Konga, built on trust, authenticity, and a shared commitment to delivering genuine technology to Nigerian consumers. Through Samsung’s official store on Konga, customers are assured of authentic products, reliable after-sales support, and a seamless shopping experience.
The pre-order offer is available for a limited period. To be one of those who get to experience the new device, tech enthusiasts are encouraged to visit Konga’s Samsung Official Store to reserve their preferred Galaxy Z Fold8 or Z Flip8 device and qualify for exclusive Samsung gifts worth up to ₦1 million, while stocks last.
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