K.F. Lai
Nov 14, 2012

OPINION: Mobile operators expect growth in value-added services; trust is key

Mobile operators in Southeast Asia expect increasing revenues from value-added services, but building trust will be essential in the industry's growth, says Dr KF Lai, co-founder and CEO of BuzzCity.

OPINION: Mobile operators expect growth in value-added services; trust is key

In 2012 we continue to see rapid growth in mobile adoption across Southeast Asian countries. ASEAN countries, each with high mobile penetrations, low fixed-internet and broadband penetration have offered healthy environments for growth of the mobile internet.

With mobile being the preferred choice for consumers to access the internet, (nearly nine out of 10 prefer to surf with their mobiles) it hardly comes as a surprise that mobiles are largely used for communications (social networks), entertainment, games and search.

However our latest survey reveals that users are still looking for a wide range of services, banking being one of them, as it is constantly ranking high amongst consumers. It is not just the demand for products that is increasing, the demand for media content such as TV and video presents a huge opportunity for local and relevant content.

Consequently, mobile operators in the region expect their revenues from value-added services (VAS) to grow but building trust is still a key element in the growth of the industry, particularly if mobile commerce is to be a mainstream value-added service. 

The most recent example came in Indonesia in late 2011. As a result of complaints from consumers having to pay for unwanted value-added services, the Indonesian Ministry of Telecoms cancelled all subscription services in October 2011. Customers had to re-subscribe to the value-added services subject to a stringent rules and procedures. While industry players spent most of 2012 rebuilding the industry from scratch, the establishment of independent call centres to handle consumer complaints was a major element in rebuilding consumer trust.

With more consumers gaining trust in mobile and brands taking advantage of the increased spending power of the maturing mobile audience, the entire ecosystem will benefit in coming months, ultimately paving the way for further demand for mobile and lifestyle content as well as mobile commerce offerings. If the industry reviews the changing audience and develops its localised content then 2013 looks set to be an exciting year for Indonesia and Southeast Asia in general.

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