Consumer VAS revenues to triple by 2020

VAS revenues set to reach $420 billion in next eight years, says Point Topic CEO
Apps and VAS took centre stage at this year's Mobile World Congress. (Getty Images)
Apps and VAS took centre stage at this year's Mobile World Congress. (Getty Images)

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Consumer value added services are set to triple to $420 billion in 2020, up from $125 billion worldwide in 2011.

Speaking at CommunicAsia 2012 in June, Oliver Johnson, CEO of Point Topic, an analyst firm for global broadband statistics, said that value added services are critical to provider revenues worldwide.

As competition reduces margins in the basic broadband business, and with increasing penetration of broadband value added services, their contribution to revenues is becoming increasingly important, he said.

VoIP is currently the top revenue earner. However Point Topic predicts that this will be trumped by IPTV by 2020. Johnson also pointed out that growth may not be easy for some services, particularly when faced with competition from online and traditional offline services.

“Development may be harder for some markets than other. For example, security already has a penetration rate of over 85%, so being able to grow this further will depend on developing other security related services, or on the advent of a virulent and destructive online threat,” he said.

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