A generic framework for implementation of mobile value added services (MVAS) : a case study of Safaricom limited’s M-pesa Thesis uri icon

abstract

  • Mobile Telephony market in Kenya has been characterized by intense competition among the Service providers. This has lead to very low charges for core mobile services such as calls and Short Messaging Service (SMS), thus dwindling revenue from the core sources. It has therefore become imperative for service providers to focus on alternative revenue sources in the form of Value Added Services (VAS), which have the potential of boosting revenue substantially. This coupled by the proliferation of mobile subscribers and high penetration rates of mobile phones locally has opened up a new horizon for Value Added Services Providers (VASPs) and mobile application developers who may wish to reap big in this field. However, the process of implementation of Mobile Value Added Services (MVAS) continues to be a challenge particularly to the small and medium sized firms (and application developers or institutions) who in most cases lack the financial muscle. This may in turn impact on their ability to conduct a comprehensive market research in an attempt to cut costs and save time during the implementation and early deployment phases. This may be mitigated if a generic MVAS framework were to be used under such circumstances. According to the research conducted during this study, it became evident that having a clearly defined implementation framework that involves all MVAS stakeholders is critical for the overall success of any MVAS product or service as was the case for Safaricom/Vodacom’s MPESA. In conclusion, this study proposes a generic reconfigurable MVAS architecture with location based capability as the best bet for VASPs and other MVAS developers to use in planning, implementation and deployment of their MVAS.