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Value Added Services (VAS)

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“A value-added service (VAS) is a popular telecommunications industry[1] term for non-core services, or, in short, all services beyond standard voice calls and fax transmissions. However, it can be used in any service industry, for services available at little or no cost,[citation needed] to promote their primary business. In the telecommunications industry, on a conceptual level, value-added services add value to the standard service offering, spurring subscribers to use their phone more and allowing the operator to drive up their ARPU. For mobile phones, technologies like SMS, MMS, and data access were historically usually considered value-added services, but in recent years SMS, MMS and data access have more and more become core services, and VAS, therefore, has begun to exclude those services.”

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A value-added service (VAS) is a popular telecommunications term for non-core services, or in short, all services beyond standard voice calls or another bearer only type services.

All VAS share the same characteristics:

  • Not a form of basic service but rather adds value total service offering
  • Stands alone in terms of profitability and/or stimulates incremental demand for core service(s)
  • Can sometimes stand-alone operationally
  • Does not cannibalize basic service unless clearly favorable
  • Can be an add-on to basic service, and as such, may be sold at a premium price
  • May provide operational and/or administrative synergy between or among other services – not merely for diversification

Every VAS will demonstrate one or more of the above characteristics. Furthermore, a value-added service will never stand in stark contrast to any of the above characteristics.

We are perfectly placed with our experience access and offer VAS to complement the existing service or services you currently have.

There are two types of VAS:

The first service types are those value-added services that stand alone from an operational perspective. These types of services need not be coupled with other services, but they can be. Many non-voice services fall into this category. They are often provided as an optional service along with voice services, but they could be offered and used by themselves without the voice service. For example, SMS could be offered and used as a service without voice calling.

The second and arguably more numerous and important type of VAS are those services that do not stand-alone. Instead, this category adds value to existing services. While it seems implicit in the definition of value-added, this is an important principle that makes value-added services stand apart from other services.

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