Home References What is VAS?

Value added services (VAS) refer to the non-core services offered in the telecom sector. All services apart from standard voice calls and fax transmissions are considered a VAS. These services can be used to promote an operator’s primary business.

VAS spurs mobile subscribers to increasingly use their mobile device in order to allow operator to pull up their average revenue per user.

Cost

While the value added services are something extra offered to the customer either at a nominal extra charge or at no additional charge. Most of the times, the ancillary service is extended at an additional charge. The actual pricing structure for value added services generally depend on whether the service provider considers it as an amenity intended to create a stronger rapport with the customers or as a potential source of additional revenue generation.

Optimizing consumer experience with VAS

Globally, VAS denotes a sizeable revenue opportunity for the service providers owing to the fact that it pulls more and more users to access the utility, entertainment and transactional services on the go. However, the important factor pushing the value added services is their high variability, which makes the mobile operators capable of directing 30-40% VAS annuity budgets towards the management of operational overheads. In order to include the diversified mobile VAS services effectively in the portfolio as well as enhance the customer experience, it become significant for the operators to bring in some control mechanism for service variability into the framework.

The managed value added service models replace the separate, vendor-specific delivery models with a standardized, comprehensive approach targeted at end-to-end service management. This enables the implementation of the best industry practices, specification of service levels along with definition of processes guaranteeing an optimal service experience for the customers.

Managed VAS bridges the disparate islands of service management by the way of unifying operations under a single service. It enables the automated probes to measure proactively the service performance, which ensures an optimal service quality for end users at the same time maximizing the revenue window of the service provider.

Benefits of VAS

Benefits of VAS

For the consumer:

  • Superior service experience
  • Improved pricing proposition

For the Service Provider

  • Increased service availability
  • CAPEX and OPEX reduction
  • No leakage of revenue
  • Enhanced Customer experience
  • Optimized investment/cost
  • Enhanced growth of revenue
  • Faster time to market
  • Bring in a healthy bottom line
  • Loyalty Offerings
  • Customer insights enabling relevant

Summary

Offering various types of value added services enables the service operators to stand out of the competition. They provide advantages not only to the service providers but also to the customers. While the customers get something above and beyond their basic requirements; the service providers enjoy an increased rapport with the client, capable of translating into more revenue. Even if these customer services cost some extra bucks to both the sides; they have the potential of significantly enhancing the growth and practicability.

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