What's next for the internet service provider market? What are the trends? Will value-added services remain essential to the ISP business model? Read on to discover trends driving ISP growth and the importance of useful and profitable VAS for internet service providers .
In addition to sharing market information and insights with business owners, managers, and IT professionals from internet providers, the idea of this article is, in the end, to define the most appropriate punctuation for the title of this article, statement (.) or question mark (?)
The Future of ISP with Useful and Profitable VASs
More and more internet providers are considering value-added services (VAS) as a strategic element to add value to their business model .
Indeed, SVA solutions in the portfolio represent an important strategy for increasing profitability and generating even more benefits for ISPs . Both as a way to increase business profitability and to attract and retain subscribers, for example.
Let's review five important features that make useful and profitable VASs so important for internet service providers.
#1 New service, new revenue stream
With each new useful and profitable VAS added to the portfolio, new revenue opportunities are created . This is certainly a demand from subscribers, who always want new services, benefits, and utilities when they decide to purchase broadband internet access from an ISP.
#2 Interesting recipe alternative
Even though the main activity of an ISP is Multimedia Communication Service (SCM), useful and profitable SVA packages are interesting billing strategies for the ISP .
#3 Capture more subscribers
Of course, useful and profitable VAS packages are also strategic for internet providers' marketing and promotional strategies. When comparing costs and benefits, free VAS packages may be a promotional option . This is undoubtedly another benefit that allows for maximizing subscriber acquisition strategies.
#4 More useful and profitable SVAs, less taxes, more profit
By bundling useful and profitable VAS packages , ISP profitability increases . VASs for ISPs undeniably generate tax savings and contribute to better tax planning . Thus, they enable the internet provider to pay less taxes, increase business profitability, and improve profitability.
#5 Retain subscribers
Whenever an internet provider is efficient, effective, and effective in providing broadband internet access, subscribers are satisfied. However, it is a requirement and the minimum expected. Therefore, useful and profitable VASs add value to the ISP . After all, they provide even more utilities and conveniences to subscribers. This, along with quality internet connectivity, ensures subscriber loyalty.
Be aware of the market and the future to grow
The Lumiun Blog offers several articles on VAS for internet providers. However, two more recent articles on VAS for ISPs are relevant and complementary to this one: useful and profitable VASs and the future of ISPs.
The first provides information about the technology and VAS that have the potential to generate new opportunities for internet providers and offer more benefits to subscribers: Wi-Fi 6 and 5G – New opportunities and more benefits .
The second shares marketing tips to make a difference and grow your internet provider through and profitable VASs , in a viable and sustainable way: Marketing Tips for Internet Providers .
In fact, the growth of the business economic sector in the internet market certainly depends on a series of variables that include, among the main ones, good management practices , SVA solutions in the portfolio and tax adequacy .
In addition to these aspects, business owners, managers, and IT professionals need to stay abreast of new developments, technologies, legislation, and trends . This is especially true because the internet service provider market is becoming increasingly competitive and dynamic.
In this sense, I will bring some excerpts, article summaries and a short video (3:50) about trends, products, services, strategies, technologies and useful and profitable SVAs that should impact the market and the future of internet providers .
At the end of each section, you'll find a link to the complete material, so you can access it and learn more if you're interested. Also, because researching and comparing is always a necessary and recommended practice .
Trends that are part of the future of internet providers
First, let's watch the short video from Infra News Telecom , featuring editor Simone Rodrigues . In it, she gives a preview of the exciting content included in the 2nd Special Edition of Infra News Telecom's Internet Providers .
These are very interesting texts that give a good idea of what's to come:
✅ New paths for ISPs
✅ Providers land on mobile networks
✅ ISPs will be fundamental for the diffusion of 5G in Brazil
✅ Neutral networks open new opportunities for ISPs
✅ MVNO: A growing market
✅ Internet TV generates new business for ISPs
✅ Edge computing improves user browsing experience
✅ DDoS: How to fight network zombies
✅ xGPON and XGS-PON technologies gain momentum with 5G
✅ Sales management and customer relations require a mix of technology and in-person service
# What is an MVNO?
MVNO , an acronym for mobile virtual network operator , defines a mobile virtual network operator that essentially purchases the right to use part of the infrastructure offered by one or more mobile operators (the latter, in fact, with towers and antennas). Therefore, the operator does not need to worry about making heavy investments, remaining responsible only for marketing and billing the service, in addition to customer service .
# MVNO Differentials
Cell phone plans currently vary in attractiveness depending on the added benefits. Not only music and video streaming, virtual newsstands and bookstores, discount clubs, but also a wide variety of other useful and profitable VASs. The MVNO operator market continues to grow rapidly , especially with the arrival of 5G. But beyond the B2B market, which comes through machines, there is a huge opportunity in the B2C market. You just need to know how to seize it.
# Regional MVNOs vs. Large Operators
There's a large market for small and medium-sized MVNO operators. This is , in fact, a result of the gaps left by telecom giants. Thus, local operators have the opportunity to, with the same infrastructure as large operators, develop strategies focused on certain sectors and market niches. However, to continue growing, they must focus on the B2C market and add products and services (streaming services, educational platforms, and other useful and profitable VAS) that provide enhanced experiences .
# Entertainment SVAs gain ground
The purpose of useful and profitable VASs is to offer additional experiences to subscribers and encourage them to use the operator/provider's main service, thereby increasing revenue. In practice, they offer a huge number of opportunities for generating new revenue, with low or even no tax incidence. The importance of useful and profitable VASs is so great that they represent 80% of ISP revenue. In this sense, the effort to offer something extra, truly useful and of high quality, is evident. In two years, complaints to Anatel regarding VASs have fallen by 65% . The trend is to simplify and streamline the offering and direct efforts to provide useful and profitable VASs for entertainment, education, and subscriber internet security and control .
# Macrotrends for the ISP market
previously predicted macrotrends for the ISP market remain valid for 2022 and beyond . First, because of the exponential growth in demand for internet access caused by the pandemic. Second, because the largest portion of consumers (market share) remains unserved by large operators.
- Machine-to-machine communications will increase demand
- Streaming services
- The ISP market focus will be on speed
- Focus on the growth of classes “D” and “E”
- New competitive scenario with large operators
- Focus on ISP management
# What to expect from the future of the internet?
The outlook for the internet's future certainly depends heavily on how society evolves. That is, whether there will be behavioral , the need for new regulations , technological refinements , etc. What can be predicted is that the online world, as we experience it today, will be significantly surpassed.
# Complete connection with various types of objects
An increasingly connected digital environment is likely a fairly common reality in the internet landscape. Online devices have become inseparable companions of human beings. Thus, everything from wearables (worn on the body) must be connected to the network and exchanging data and information in real time. Thus, Artificial Intelligence (AI) and the Internet of Things (IoT) resources tend to expand their influence over our internet usage patterns and behavioral preferences, as well as the flexibility of work methods.
# Added security
Finding ways to handle more complex interactions is important, especially when it comes to traceability and data storage . Proof of this is that privacy and control over personal and sensitive data in Brazil currently have specific legislation – the General Personal Data Protection Law (LGPD) ( Law No. 13,709/2018 ). Indeed, companies are likely to invest in technologies to ensure effective protection and compliance with the LGPD, VPN solutions and firewalls . The trend for the future of the internet is toward even more significant legal intervention.
# How to enable necessary advances
Undoubtedly, greater demand requires greater internet operating capacity. One idea and trend is the reconfiguration of network architecture through routed optical technology (RON), which would be defined by software and distributed "as a service ." Besides simplifying infrastructure, this could also result in supply chain savings, with scalable networks capable of supporting traffic demands and more agile operations. Ultimately, there are many new developments in the web universe. Therefore, internet providers must be vigilant in aligning strategies with market demands and always prioritizing the ability to customize useful and profitable VASs .
# Opportunities and challenges with 5G
5G has already begun rolling out in Brazil. Besides improvements for users, the technology also brings opportunities and challenges for internet service providers. Among other advantages, providers will be able to reduce cabling. On the other hand, it will be necessary to ensure fiber coverage for the technology to work properly, for example.
Useful and profitable SVAs are part of the ISP's present and future
It's nothing new, but it's always good to reinforce that billing strategies for ISPs with SVA packages are important to maximize the financial return of internet providers .
Especially because they allow tax reduction and, consequently, increase profitability . In other words, the idea is to pay less tax and earn more through SVA packages .
Therefore, the focus of business owners and internet provider managers should be investing in VAS for ISPs . Above all, because they are , and lucrative solutions .
Informing more with SVA packages , it is undeniably a totally viable revenue strategy with better results and lower costs.
Be sure to learn more about SVA solutions for internet providers on the Lumiun Blog . Discover the advantages, opportunities, and benefits of SVAs for ISPs .
Just click on one of the links below to access.
- Brazilian startup launches new SVA for internet providers
- What is an SVA? (Value Added Service)
- Lumiun ISP is an SVA for Strategic Value Provider
- Why do providers are looking for SVAs?
- What are the benefits of having an SVA for ISP?
- How to choose a fiscal audit for sva
- Useful SVAs tips for internet service providers (ISP)
- Billing strategy for ISP with SVA packages
- The importance of tax planning for providers (ISP)
- Wi-Fi 6 and 5G: new opportunities and more advantages
- Marketing tips for internet providers
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