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VAS Glossary

Welcome to our VAS Glossary. The mobile communications and digital monetization landscape is dynamic and constantly evolving. It’s an ecosystem filled with acronyms and technical terms that are crucial for navigating and succeeding in this space.

Whether you are new to the industry or an experienced professional looking for a quick reference, we hope you find this resource valuable.

A2P (Application-to-Person)

Refers to messages (usually SMS) sent from a software application to an end-user. It is an essential service for notifications, security alerts, and direct marketing.



API (Application Programming Interface)

A set of rules and tools that allows different software applications to communicate with each other. It’s how a client’s systems integrate with a communications platform to send SMS, trigger calls, etc.

ARPU (Average Revenue Per User)

A financial metric that calculates the average revenue generated per customer or active user over a specific period.


CAC (Customer Acquisition Cost)

The total marketing and sales cost required to acquire a new customer. It is crucial for assessing the profitability of campaigns.


Chatbot

Software programmed to simulate human-like conversations through text or voice, automating customer service and interactions via messaging channels.


Churn

The percentage of customers who cancel or stop using a service within a given period. A vital indicator of customer satisfaction and retention.


CPA (Cost Per Acquisition)

The cost associated with achieving a specific conversion, such as a subscription, registration, or sale.


CPaaS (Communications Platform as a Service)

A cloud-based platform that enables companies to easily integrate communication channels (SMS, Voice, Video, Chat) into their own applications and business processes.


CTR (Click-Through Rate)

The percentage of users who click on a link (e.g., in a marketing message) compared to the total number of views. It measures the effectiveness of the call-to-action.


CVR (Conversion Rate)

The percentage of users who complete a desired action (e.g., subscribing to a VAS) after interacting with a campaign.


DCB (Direct Carrier Billing)

A payment method that allows users to purchase digital content or services, with the cost being charged directly to their mobile phone bill or prepaid balance.


HLR Lookup (Home Location Register Lookup)

A service that checks in real-time if a mobile number is active, which network it belongs to, and if it is roaming. Essential for optimizing the deliverability and cost of communication campaigns.

IVR (Interactive Voice Response)

An automated telephony technology that allows users to interact with a customer service system using voice commands or the phone’s keypad (DTMF).


LBS (Location-Based Services)

Services that use the geographical location of a mobile device to provide personalized information or offers.


LTV (Lifetime Value)

A prediction of the total revenue a customer will generate for the company throughout their entire business relationship.


MNO (Mobile Network Operator)

A company that owns and operates its own telecommunications network infrastructure to provide mobile services to its customers.


MO (Mobile Originated)

Refers to a message (SMS) initiated and sent by a user from their mobile device.


MRR (Monthly Recurring Revenue)

The predictable revenue a company expects to receive on a monthly basis, a key indicator for subscription-based business models like many VAS.


MSISDN

The technical term for a user’s mobile phone number, the unique identifier for billing and connecting calls and messages.


MT (Mobile Terminated)

Refers to a message (SMS) that is received by a user on their mobile device, such as an A2P message.


MVNO (Mobile Virtual Network Operator)

A company that provides mobile services but does not own its own network infrastructure, instead leasing it from an MNO.


OTP (One-Time Password)

A temporary, secure password valid for a single transaction or login, often delivered via SMS for authentication.


PSMS (Premium Short Message Service)

An SMS with an added cost, used for value-added services such as voting, contests, or content subscriptions.


RCS (Rich Communication Services)

The evolution of SMS. It allows for high-quality media sharing (photos, videos), read receipts, and typing indicators, creating a richer and more interactive conversational experience for marketing.

SMS (Short Message Service)

The universal text messaging service, a direct, reliable, and mass-reach communication channel.


USSD (Unstructured Supplementary Service Data)

A real-time communication protocol between the mobile phone and the operator’s systems, often used for balance inquiries or interactive service menus.

VAS/MVAS (Value-Added Services/ Mobile Value-Added Services)

Non-core services, such as apps, content, and extra features, offered beyond basic voice and data communications, aimed at generating additional revenue and increasing customer loyalty.

We trust this glossary provides a clear understanding of the terms that define the mobile industry. Knowledge is the foundation, but action is what drives results.

The next step is to apply these concepts to unlock your business’s full potential. Our team specializes in transforming these strategies into measurable success.

Contact us to explore how we can help you achieve your specific goals.

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