What is VAS?

Value-added services are additional benefits consumers can receive when they purchase a product or service. They are “add-ons” that can go a long way toward building goodwill if free or can significantly increase revenue if offered for a discounted price to customers. Knowing some common value-added services can help you improve the benefits you offer customers, and get you better deals when you purchase for your business. Value Added Services, VAS, are non-core services or features that are beyond the standard voice calls. This term is very popular in the telecommunications industry though it can be used in almost any service industry in reference to services that are availed at no or at a little cost to promote the primary business. Core services are mainly basic services, support services, and complementary services.

In the contemporary world, telecommunication companies market VAS as premium features or add-ons to their core functions. This is actually the case despite the fact that these services can function on a stand-alone basis. Typically, these services are not intended to just diversify product package functionality. They are used to provide administrative and/or operational synergy among the vast array of services. And, they are beneficial to both service providers and customers because they add end user’s functionality while sourcing enhanced analytics and data for use in businesses.

VASs share the following characteristics:

  • They add value to the core services
  • They are not basic services
  • They stand alone in terms of their profitability
  • They can stimulate increased demand for standard service(s)
  • Sometimes, they stand alone operationally
  • They are add-ons to the basic service(s)
  • They may provide administrative and/or operational synergy among or between other services
  • They are not merely used for diversification purposes

Generally, these services go a long way in establishing goodwill when offered free of charge. They also increase revenue significantly when provided alongside the discounted services or products. Knowledge of these services enables you to provide more benefits to customers or get a better deal when purchasing a product or hiring a service.

Mobile Value Added Services – MVAS

The mobile communications market is evolving rapidly. One thing that is apparent, however, is the fact that average revenue per user that telecommunication companies generate from voice services is declining due to commoditization, plummeting voice service tariffs, and saturation. Thus, telecom companies are under immense pressure to provide quality services that are beyond the basic voice to remain competitive.

Consequently, a majority of these firms are packaging mobile VASs in their standard service offerings to drive data usage and improve revenues. Changing customer loyalties and intensifying competition are also shifting focus on mobile VAS as a major service differentiator. With a vast selection, customers choose service providers on the basis of their VASs. Many countries are also making mobile phone number portability mandatory. This has increased pressure on telecom companies to provide quality services as a means to curb customer churn. Thus, our mobile Value Added Services provide an excellent way for telecom companies to attract subscribers and maximize customer retention.

In this competitive era, Telcos have enhanced their array of VAS campaign. In the telecommunication examples of modern VAS services include:

  • Voicemail
  • SMS voting
  • Top up
  • Ringback tone
  • SMS lotteries
  • SMS voting
  • Balance checks
  • M-commerce and mobile money based services
  • Online gaming
  • Mobile advertising
  • Infotainment and sports services
  • Dating and SMS chatting premium services
  • OTT and Mobile TV services
  • Location-based services
  • Live-Streaming
  • Devotional applications
  • WAP content downloads
  • Recorded messages
  • Dialing back to the caller to prevent lengthy service waits

It’s important to note that operators update these services frequently depending on the latest trends and needs of their customers.

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