• MAVAM Argentina (second edition) reveals that 43% of Argentinean mobile operators’ revenues come from Value Added Services (VAS);
• SMS proves still important to users, amounting to 68% of VAS sales in Argentina;
• Mobile broadband already represents 17% of VAS revenues in Argentina.
The results show that revenues from VAS amounted to 43% of all overall mobile services revenues during the second quarter of 2011, a 34% increase on the same period in 2010. In line with this, mobile broadband already represents 17% of operators’ total VAS revenue.
Acision’s MAVAM also revealed that SMS represents 62% of all VAS sales in the country, with mobile broadband increasing its contribution to 17%, followed by other VAS (content, voice services, IM, etc.) which contributes 15% of operators’ total VAS sales. The survey also found that in Argentina today, there are approximately 5.03 million customers who make use of mobile broadband services: 78% of which access the Internet via their cell phones and the remaining 22% (1.1 million) using a USB modem to connect to the internet via their computer.
Among those that access the Internet via their mobile phones, 70% of users said they access the Internet for personal reasons, and 30% access the Internet for professional purposes. In addition, 68% spend less than an hour a day on the Web, with the preferred activity amongst users consisting of accessing social networks (32%).
While mobile users are increasing their service usage, as many as 50% of those surveyed stated that they intend to replace their mobile phones next year, with the main features sought after in their next handset being: connection to the Internet (82%); e-mail account access (74%); and access to social networks (72%). According to MAVAM, mobile broadband usage in Argentina will keep growing as more and more people adopt feature-rich smartphones, and in parallel with regional and worldwide trends – 32% of VAS is already made up by users accessing mobile broadband today.
Commenting on the research,, Vancrei Oliveira, Acision’s Regional VP for Latin America, stated: "The Argentine VAS market represents 17% of the Latin American market, ranking third behind Brazil and Mexico. Today 43% of all services sales already come from VAS. Given this degree of development in the market, operators need to continue to provide creative value added services which meet user demands, ensure differentiation and increase their profitability.
"Additionally, the high usage in SMS in Argentina is a clear indication of how important this service still is today for mobile users, and operators can add far more value to messaging through simple solutions that will not only increase ARPU but customer satisfaction. Acision’s innovative messaging and data services solutions can ensure operators move beyond competing on lower prices towards more targeted, personalised service offerings with improved QoE, which can be provided through Acision’s Cloud Delivery Model."
MAVAM Argentina. Key Results from the Second Edition.
• In Q2 2011, the VAS market in Argentina was equal to AR$ 3.16 billion (USD 775 million);
• 98% of Argentinean users made use of SMS services over the last three months;
• 9.7% of active users sent multimedia messages more than once a week from their cell phones over the last three months;
• 14% of users questioned used an instant messaging service on their mobile phones over the last three months;
• 8% of the people surveyed have set up push e-mail on their mobile phones;
• 23% of users accessed social networks on their mobile phones over the last three months;
• 86% of users interviewed received mobile marketing messages on their mobile phones over the last three months.
Jorgen Nilsson, Chief Executive at Acision, stated: "The trends we are seeing in Latin America and the rest of the world show that mobile messaging and services are becoming increasingly more important and valued by consumers and enterprises alike. By combining our global messaging infrastructure footprint and expertise with new delivery models, such as enabling services on-demand from the cloud, we have been able to evolve our core messaging business to ensure mobile operators globally can provide differentiated service offerings, quickly to meet users demand and generate new revenues."
Oliveira concluded: "Since we launched our first MAVAM Brazil, which was followed by MAVAM Mexico and MAVAM Argentina, we have seen how the demand for value added services has grown and how each country has implemented its own unique set of services to deal with the demand. In Brazil, mobile broadband is equivalent to 48% of VAS, while users only send, on average, 24 SMS per month. In Argentina, SMS amounts to 68% of VAS and in Mexico, accessing content is equivalent to 18% of the VAS. MAVAM is a tool for operators, industry influencers and the telecoms industry at large to identify key mobile trend across the region and increase knowledge of the services that will define the next generation of the mobile industry".