This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

January 26, 2024, vizologi

VAS Service: What It Means and Why It Matters

Have you heard of VAS service? It’s a term that’s becoming more important today, but many people aren’t quite sure what it means.

VAS, or Value-Added Service, goes beyond the standard offerings of a product or communication service provider. It’s a type of service. In this article, we’ll explore what VAS service is, why it matters, and how it impacts the way we access and use technology in our daily lives.

Defining Value-Added Service (VAS)

Value-added services (VAS) in the telecommunications industry refer to non-core services beyond standard voice calls and fax transmissions that provide additional value to the standard service offering. VAS’s core characteristics include services like SMS, MMS, and data access, while other major VAS include live streaming, location-based services, and mobile advertising.

These VAS are integral in potentially increasing mobile network operators’ business revenue streams through premium-charged content. In the contemporary landscape, VAS has transitioned from being considered ancillary to a core service. The impact of VAS on business profitability and customer retention is substantial, as these services can add an extra layer of engagement and reward-based schemes. Essentially, businesses can cultivate and maintain a loyal customer base through VAS. Furthermore, the trajectory of VAS in a digital future is continuously driven by innovations.

These innovations include personalized and interactive service advancements and incentivized rewards, ultimately contributing to a more enriched user experience.

Core Characteristics of Value-Added Services

Value-added services in the banking sector go beyond deposits and withdrawals. They include financial advice, investment opportunities, and personalized account management. These services aim to enhance customer satisfaction and convenience.

In the telecommunications industry, features like SMS, MMS, and data access have become core offerings from their previous status as value-added services. This shift reflects their importance in shaping the characteristics of value-added services.

Moreover, providing digital content, such as live streaming and location-based services, expands the core characteristics of value-added services. These services offer consumers entertainment, information, and interactive experiences, contributing to additional revenue streams for service providers.

Illustrative Examples of Value-Added Services

Banking Services

Banks offer more than standard checking and savings accounts. They also provide value-added services that go beyond the basics. These include mobile banking, online bill payment, financial planning tools, and personalized customer support. VAS makes banking more convenient and accessible. It also offers personalized financial insights and tips for better money management. Banks are using AI-powered chatbots and custom mobile apps to innovate VAS.

These can include real-time spending alerts, customized budgeting tools, and round-up savings programs. By embracing new technologies, banks can provide added value, security, and customer flexibility. This helps deepen customer loyalty and satisfaction.

Telecommunications Features

Value Added services (VAS) are non-core Services in the telecommunications industry. They improve the standard service offering. These services include SMS, MMS, data access, live streaming, location-based services, and mobile advertising. Some of these services have become core components due to widespread adoption. VAS enhances the user experience and offers extra revenue for mobile network operators.

In today’s digital era, telecommunications features are evolving with emerging technologies like artificial intelligence, augmented reality, and IoT. This creates innovative and integrated user experiences.

For example, integrating location-based services with augmented reality apps lets users access real-time information about their surroundings, providing a unique and enriching experience. These integrations show how telecommunications features are evolving in response to technological advancements.

Digital Content Provision

Digital content enhances the user experience by offering VAS services beyond standard calls and texts. These services, like live streaming and location-based options, meet the changing needs of today’s users. For instance, VAS integrated with 5G tech allows faster internet, supporting high-quality video and real-time interactions.

Additionally, rewards and personalized recommendations make content more relevant and engaging. The industry is always evolving, with AR and VR reshaping digital interactions and creating new VAS opportunities.

The Relevance of VAS in Today’s Technological Realm

Impact on Business Profitability and Customer Retention

Value-added services are essential for business profitability and customer retention. They go beyond standard voice calls and data access, creating new revenue streams and enhancing the customer experience. Examples of VAS include live streaming, location-based services, and mobile advertising. These offerings attract and keep customers interested.

Integrating VAS with emerging technologies like augmented reality and artificial intelligence can further drive profitability and customer retention. For instance, augmented reality can enhance customer engagement and increase revenue through premium VAS content. By embracing VAS and integrating them with innovative technologies, businesses can increase profitability and improve customer retention through a better customer experience.

Enhancement of User Experience

Value-added services significantly improve the overall customer experience by providing various extra services that add value to the standard service offering. These services include SMS, MMS, and data access, previously seen as VAS but now essential services. Examples of major VAS are live streaming, location-based services, and mobile advertising, which give users extra features to enhance their telecommunications experience.

Incorporating new technologies like AI, AR, and VR has also improved user experiences through VAS. To ensure that VAS enhances user satisfaction and loyalty, companies can introduce loyalty programs and rewards-based schemes that create additional revenue streams for mobile network operators. Companies can also improve user experience by offering premium content, increasing customer satisfaction and brand loyalty.

The Trajectory of Value-Added Services in a Digital Future

Innovations in VAS Offerings

Recent innovations in value-added service offerings have significantly impacted user experience in the telecommunications industry. Services like live streaming, location-based services, and mobile advertising make it easier for users to access content on their mobile devices, improving the overall customer experience. These services have also integrated with emerging technologies like AI and IoT to enhance customers’ offerings.

For instance, AI-driven chatbots enable more personalized and responsive customer service experiences. Moreover, businesses have used these innovations to increase profitability and improve customer retention through rewards-based schemes and additional revenue streams.

Expanding Horizons: The Integration with Emerging Technologies

Value-added services (VAS) enhance user experience in the telecommunications industry. They offer non-core services that add value to the standard service offering. VAS, such as live streaming, location-based services, and mobile advertising, continue to evolve and integrate with emerging technologies, providing users with a more seamless and advanced digital experience.

Integrating VAS enhances user experience and impacts the profitability and customer retention of businesses offering them. They provide additional revenue streams for mobile network operators and third-party content providers. Businesses are well-positioned to capture new revenue opportunities and meet the changing demands of their customers in a digital future through the ongoing evolution of VAS and their integration with emerging technologies.

Vizologi is a revolutionary AI-generated business strategy tool that offers its users access to advanced features to create and refine start-up ideas quickly.
It generates limitless business ideas, gains insights on markets and competitors, and automates business plan creation.


+100 Business Book Summaries

We've distilled the wisdom of influential business books for you.

Zero to One by Peter Thiel.
The Infinite Game by Simon Sinek.
Blue Ocean Strategy by W. Chan.


A generative AI business strategy tool to create business plans in 1 minute

FREE 7 days trial ‐ Get started in seconds

Try it free