What are the benefits of having a VAS (Value Added Service) for ISPs?

November 3, 2021

6 minutes of reading

Having a VAS for an ISP is essentially a benefit for both users and the internet provider. It may seem unreal, but when it comes to Value-Added Services ( VAS ) for Internet Service Providers ( ISPs ), this is the reality.

Without a doubt, an ISP VAS is a useful and cost-effective management and digital security solution for internet providers of all sizes (small, medium, and large). It's that simple.

Even so, it seems like a mistake and doesn't correspond to reality. Therefore, I invite you to do a quick test : a Google search to see what the internet search engine finds about the disadvantages of an SVA.

Well, I confess: I was really surprised by the result . While writing this article, I repeated this search a few times... Even in incognito mode.

Are there any “disadvantages of an SVA for ISP”?

Initially, because I write about the benefits of having a VAS for ISPs, I was curious about the opposite. I wondered, without being able to answer, what the possible " disadvantages of a VAS " might be.

So I started searching on Google. Even with a few variations in keywords and syntax, I found no results for these searches: "disadvantages of value-added services," "disadvantage of value-added service," and "disadvantage of a VAS for ISPs."

Even though I searched for the terms "in quotation marks," they still yielded no results. Even when I tried searching for the same terms in English, Google's infallible message kept appearing: "No results found for..."

Anyway, I thought it would be interesting to share this behind-the-scenes look at this article with you. After all, we've already published some content on the topic , and we truly only have competitive advantages and strategic differentiators related to VAS solutions for internet providers .

In fact, it's the huge benefits of an ISP SVA solution that explain why internet providers look to SVAs .

SVA for ISPs: trends for growth and business model development

Before we continue on the benefits of having an ISP VAS, it's worth watching this short video on trends in the internet provider market .

Infra News Telecom editor Simone Rodrigues quickly contextualizes the scenario and context of the transformation of the internet provider business model . Watch the video and see the relevance of a VAS for ISPs.

SVA for ISP: evolution and transformation of the business model

In principle, SVA solutions for ISPs are the internet provider sector's bet to grow, transform and evolve its business model.

In this sense, the path envisioned to leverage the growth of the internet access provision business involves maximizing the benefits of having a VAS for ISPs.

In other words, in addition to the many advantages of a VAS for internet providers in the day-to-day business and in the relationship with subscribers, VAS solutions for ISPs have the potential to transform the business model .

Above all, the focus on value-added services, VAS for providers, is what should guarantee the survival of internet providers and transform them into technology companies .

In other words, this is what the CEOs of Um Telecom (Rui Gomes), Megatelecom (Carlos Eduardo Sedeh), Vogel (Daniel Cardoso), Watch Brasil (Maurício Almeida) and Você Telecom (Fábio Renato) dog lover and journalist Lúcia Berbert . You can read the full story at Ponto ISP .

In short, the idea is that, after all the heavy investments in infrastructure for the distribution of broadband internet access via fiber optics, SVA solutions for ISPs have the necessary potential to generate demand for connectivity and new business opportunities .

This will, in effect, mean that internet connection and access will be merely support activities for the provision of value-added services (VAS) . In short, the future of the internet service provider industry is closely tied to VAS for ISPs .

Discover the benefits of having an SVA for ISP

We have already seen some of the reasons that lead internet providers to seek SVA solutions for ISPs in a previous article .

Now, we intend to expand this list of advantages. This way, we can get a better understanding of the "big picture." That is, the true extent of the benefits of having a VAS for ISPs.

However, at this time, we will not differentiate or categorize them by type of benefit (commercial, tax, fiscal, sales or marketing), by beneficiaries (internet providers or users) or by any other way of classification.

We will certainly do so later, in other articles, when we will discuss in more detail one or another important benefit of having an SVA for ISP.

Without further ado, let's dive in. If you're a manager or work for an ISP, this article is for you.

Read on to discover the benefits of having an ISP VAS for the internet provider's "range" of services.

Improve the subscriber experience and, consequently, increase revenue for internet providers.
Provide tax savings. Unlike SCM (Multimedia Communication Services), SVA solutions for ISPs have a reduced tax burden . They are exempt from the state ICMS .
Provide control and protection of subscriber data and content on the internet. Reliable internet access control through DNS filtering .
Increase the level of security and control over the subscriber's internet.
Facilitate and increase the results of the internet plan sales process. A good strategy for creating more attractive and personalized promotions.
Diversify and enhance sales and marketing actions.
Optimize migration between plans created by the internet provider. This creates opportunities to increase the average ticket through an upselling strategy.
Expand your service portfolio. This directly impacts increased profitability, revenue, and sales.
user satisfaction levels
Retaining and building subscriber loyalty. An important feature of VAS solutions for ISPs.
Generate a competitive advantage in relation to competitors.
Reduce problems and failures in the subscriber network.
SVA solutions for ISPs allow you to optimize the administration and management of internet providers.
In fact, they are essential to internet access provision business model viable
Increase the LTV (Lifetime Value).
Reduce CAC (Customer Acquisition Cost).
Generate value for ISP providers and their subscribers.
Improve network performance.
Reduce harmful traffic.
As a result, the number of support calls related to malware, phishing, and other cyberattacks decreases.
Enable integration of SVA for ISP with the provider's ERP.
Create utilities and new services related to access, storage, presentation, movement or retrieval of information.
Opportunity to expand and remodel the internet provider business model based on SVA solutions for ISPs.

When internet providers offer truly useful and innovative VASs to subscribers , they gain customer loyalty.

Since they help to obtain indicators and valuable metrics for managing businesses with recurring sales .

The benefits are undeniably numerous. While market data indicates that the vast majority of internet providers are unaware of the advantages and benefits of VAS solutions for ISPs,

On the other hand, those who offer more and better value-added services have an advantage

Surprisingly, VAS solutions for internet providers are still relatively unheard of. However, they are highly relevant to the internal environment and business model of ISPs .

And, without a doubt, an SVA for an ISP makes a difference when the consumer decides between one internet provider or another .

A good SVA solution for ISP

Lumiun ISP is a VAS that offers competitive advantages , differentiators and benefits to ISPs and their customers.

The DNS filter in SVA format for Lumiun ISP was developed to offer more security and control over the subscriber's internet and increase the profitability of ISP providers.

Discover the competitive advantages and strategic differences of Lumiun ISP :