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In fact, the network operators in South Africa were amongst the first in the world to adopt the VAS model. Because the mobile operators will always take too much revenue share.
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But the cellphone industry is moving, literally and figuratively, at the speed of light. And the networks will stay the same for a very long time. Because they are accustomed to operating profit margins of 20% plus.
What’s the difference between buying a ringtone via the mobile web using a bankcard or mobile wallet and buying a ringtone via premium-rated SMS? The moment they retain less than 20% they dilute their profit margins, and by definition they become less “profitable.” And the analysts don’t like that, so in spite of actual profit going up due to higher revenue, the share price will be smacked.
And the CEO of the mobile operator will watch the value of his share options plummet.