Just like other industries, telcos are tapping into new territories and constantly working at developing new services and marketing strategies. By re imagining their own value-added services division, they are differentiating themselves and attracting even more customers to their side. The main question remains: how Telcos are capitalizing on
VAS to remain ahead of the curve?
What is VAS?
But first, a quick reminder of what the term VAS stands for. Value Added Services describe add-on products and services to the basic core functions a telecommunications company provides such as video, gaming, and entertainment. For many in the telecommunications sector, Value Added Services are driving revenue and profitability.
A booming industry
Nowadays, even though voice and data are just as useful as ever,
telco innovation has become crucial. This is where VAS comes into play by offering
telcos the opportunity to be more than just a connectivity provider. By leveraging the potential of VAS, they are not only expanding their customer base but also creating new revenue streams while enhancing customer experience and reducing churn. In fact, the global Mobile Value-Added Services (VAS) market size is projected to reach USD 1356670 million by 2028,
Recently, telecommunications companies have been leveraging the potential of Value-Added Services (VAS) in various ways. For one, they are offering various types of content-based VAS such as music streaming, video streaming, and gaming services to their customers. These services are not only helping them maximize their revenues but also attract more customers to their network. Due to the rapid rise of digitization and consumer embrace of technology, they are also venturing into
FinTech by offering mobile banking and payment services to their customers, which enables them to make financial transactions such as money transfers and bill payments through their mobile phones.
With this initiative, not only do they elevate their services and grow their customer base, but they make banking more convenient and accessible for people living in remote areas.
Telcos are also leveraging the potential of the Internet of Things (IoT) by offering IoT-based VAS such as smart home solutions and remote healthcare services. These services generate new revenue streams and help in providing better services to customers. Furthermore, Telcos are offering enterprise VAS such as cloud-based services, managed services, and cyber security solutions to businesses helping them streamline their operations and improve efficiency.
Win for customers and telcos
Value-added services are advantageous to both customers and service providers. On one hand, Operators providing a variety of value-added services benefit from competitive advantages by increasing end-user customer interaction, which in turn boosts revenue. Customers, on the other hand, benefit from better pricing while still receiving exceptional service. Speaking of benefits, VAS is the ultimate way for Operators to differentiate themselves and stay ahead of the curve. By providing multiple and flexible options to their customers, they enhance user interaction on devices, which automatically leads to an increase in customer loyalty and revenue streams.
Not to mention that VAS can offer a great deal of data and analytics that can be ultimately used for business purposes. Subscribers in turn get to enjoy a superior service experience with a better pricing proposition. Thanks to VAS, they are offered alternative ways of communication, which allows them to enjoy more personalized experiences, with the luxury of choosing the operator who meets their needs and expectations.
Are telcos up to the challenge?
Overall, VAS bring added value, convenience, personalization, innovation, and efficiency to
telco customers, enhancing their overall experience and meeting their evolving needs in a digital age. However, operating in a highly competitive industry can be daunting and telecommunication companies need to be ready to embrace new trends and technologies. Differentiating their business from the competition requires a constant revision of their offerings. This poses many challenges as next-generation technologies are being rapidly developed. Not to mention that there are many issues that operators need to consider, including but not limited to privacy and security. The big question remains: Are telcos up to the challenge?