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Mobile Operators Experience 31% Growth in Value Added Services - 8th edition of MAVAM Brazil demonstrates VAS represents 18% of mobile operators' net sales
Mobile Operators Experience 31% Growth in Value Added Services

 

NewswireToday - /newswire/ - Reading, United Kingdom, 2011/06/29 - 8th edition of MAVAM Brazil demonstrates VAS represents 18% of mobile operators' net sales.

   
 
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Acision, a world leader in mobile data, today published its 8th edition of MAVAM Brazil - The Acision Mobile VAS Monitor – announcing that Brazilian mobile operators have seen revenues from Value Added Services (VAS) grow to 31% in the first quarter of 2011. With this growth, VAS now represents 18% of operators’ total net sales amounting to 2.14 billion Brazilian Real (BRL). This follows a global trend in which VAS share of total operators’ revenues grows as voice revenues decline.

The study also revealed significant growth in consumption of mobile data, driven by sales of mini modems, most of them based on 3G technology, and Smartphones. The Brazilian market currently has approximately 24.4 million of these devices in use. In terms of service usage, mobile broadband already represents 48% of VAS sales, followed by SMS and MMS which, combined, amounts to 41%. Net revenues from mobile broadband sales rose to 54%.

This edition of MAVAM found that Brazilian mobile broadband users accessing mobile services through their cell phones do so mainly for personal usage – 76% of users spent 30% of their time accessing social networks. People who used mini modems to access the Internet via a computer spent 22% of their browsing time accessing E:s and 20% each on browsing and social networks. The survey also reveals that year-on-year, there has been a widespread improvement in user satisfaction in relation to the mobile Internet browsing experience, however, the overall opinion is still poor due to the quality of connection.

Brazilian SMS usage is also growing. The survey found that Brazilians sent an average 22 SMS every month during the year. This is equivalent to around 878 million BRL in revenue for operators, 20% up on the previous year. Based on these figures, Brazil now has a 17% share of the Latin American SMS market. However, when compared with the global SMS and MMS messaging market, which is set to reach $114.6 billion in revenue in 2011, according to research carried out by Portio Research, Latin America still lags a long way behind other regions.

"The recent growth in Value Added Services revenues and usage in Brazil reflects a growing global trend for VAS adoption, projecting double-digit annual growth, while operators see voice revenues decline", said Rafael Steinhauser, Senior Vice President and General Manager at Acision Latin America. "Growth forecasts expect to see Smartphone sales rise 55% this year, according to the IDC. Alongside this, sales of tablets and mini modems, supported by increased innovation, more aggressive pricing packages and differentiated commercial models, will open up a mass market which will herald a new phase of growth in Value Added Services including mobile broadband, SMS, MMS and other service usage in Brazil. As the mobile data service market matures, operators will have to pay special attention to the quality of experience they provide as part of the products and packages they offer to drive healthy, sustainable business growth and avoid customer churn.”

About Convergencia Research
Since 1988, Convergencia Research has been the Market Intelligence and Consultancy unit for the Convergencia Group, focusing on Latin America's biggest players. Its market research includes: Quarterly Evolution of Fixed and Mobile Broadband in Latin America; Demand for New Mobile Services; Mobile Telephony's Contribution to Regional Economies; Satellite Supply and Demand; Pay-TV Market; Triple Play and IPTV; M2M in Latin America, etc. The Convergencia Group has been recognized as the most reliable.

For more information visit acision.com/.

PR Contacts
Fabio Cardo, 24x7COMUNICAÇÃO
T: +55-11-3787-0944 / E: fabio[.]24x7comunicacao.com.br.

 
 
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Written by / Agency / Source: Acision | Xura, Inc.

 
 

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Mobile Operators Experience 31% Growth in Value Added Services

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Acision |
Publisher Contact: Edson Melo - Acision.com 
+55 11 5504 8375 edson.melo[.]acision.com
 
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