News | January 8, 2001

VAS user segmentation is key to VAS success

WNBC launches digital broadcasts
Like a champagne bottle ready to explode, the full richness of mobile value-added services is about to burst wide open. With high-speed technologies allowing more experiences to be brought to users, the premier group of new services includes real-time driving directions, location-based advertising and mobile commerce.

These findings are presented in a report "End-user Perspectives on Mobile Value-Added Services" published recently by Strategy Analytics within its Mobile Communications Services Europe and North America. The company's latest provides a study of likely adoption patterns by end-users for new value-added services Other findings from the recently released report include: 52% of US users indicated an interest in driving directions, followed by 39% for family tracking. In Europe, In-car traffic and congestion information emerged as a strong feature, with 63% of users interested, followed by mobile commerce.

Downloading video clips was ranked as the second most attractive new service by European teens, with almost 60% expressing an interest in this application.

Automatic roadside assistance and step by step directions are the value-added services most craved by Power Users.

Mobile email has been conspicuously unsuccessful compared to its smaller leaner brother, SMS. "VAS usage is heavily segmented. Busy globetrotting executives have different set of priorities and requirements to teenage mall-rats," said Sara Harris, senior industry analyst. "It has demonstrated that clear market segmentation is going to be the key to marketing these services successfully."

"Location based services will be a critical differentiator among wireless network operators over the next five year. Access to more sticky customers and a potentially lucrative stream of advertising revenues will depend on timely and effective deployment of location solutions" added David Kerr, vice president of Strategy Analytics' Global Wireless Practice.

Source: Strategy Analytics
With contributions by Ellen Jensen, Managing Editor