Tuesday, January 22, 2008

VAS need operator's incentive

Indonesia content market has grew from a second row become first class revenue channel for operator and VAS (value added service) companies. But, as the market become more modern, now VAS companies demanding a new idea to come up with the market grows stagnant.

There is a lot of idea to bring this business back to life again, actually. Backed by 3G technology as transport, and advanced mobile phone platform from Java, Symbian and Windows Mobile, there are likely we have the development scope like desktop programming do.


Some of it are online gaming, full track songs, video on demand, and mobile tv. But all come to a common problem. Most people here is not wealth enough to spend more money for "not-really-important" pulsa. Pulsa refer to prepaid credit, as most mobile phone user here uses prepaid service than post paid. And average ARPU is between Rp. 70.000 - 100.000 (about US$ 8 - US$ 11), most of it are used for SMS and voice call.

But the situation will change if operator willing to become more "flexible" on data charge (GPRS fee). Flexible, is just another way to say "make it free" As this is VAS, user is get charged by the service itself (could be subscription or on demand) and if come with other charges, I personally will think twice to have that service.

Even the technology is so advance that can stream video, but phone with TV tuner feature is very attractive, even we can't really say the quality is satisfying. That's why people here are more like "Nonton TV tanpa pulsa !" jargon than expensive messy mobile tv. So 3G phones just like other low end phones, used for make call, send SMS, and listen to "pirated" music. Do you agree with me ?

Note. VAS company also known as CP (content provider) company.

No comments: