Why do ISPs look for SVAs?

October 27, 2021

5 minutes reading

Because an internet for internet providers is a useful and profitable digital management and security solution for internet providers of all sizes (small, medium and large). Simple as that.

First, the usefulness of an SVA for internet providers has to do with the level of security and control on the subscriber's internet .

That is, by delivering advantages and benefits really useful to users of internet providers. Which certainly increases user satisfaction and results in customer loyalty .

Secondly, but not least, we have the question of increasing the profitability that an SVA for internet providers provides.

Surely, this is the most relevant reason and the main answer to the title question of this article: Why do Internet providers seek SVAs?

In fact, the usefulness of an SVA for internet providers is what makes it profitable. As a result, it is a differential and a competitive advantage that increases the profitability of internet providers (ISPs) .

Advantages and differentials of an SVA for internet providers

Value -added services are developed and enhanced solutions to improve the subscriber experience with the use of the internet of small, medium and large internet providers.

At first, they are advantages and differentials of an SVA for internet providers that directly impact customers .

However, the impacts that really interest are due to the quality and benefits of the services provided and offered to ISP subscribers.

Above all, because SVAs allow us to optimize the administration and management of internet providers . In fact, they are essential to enable the internet access business model:

Increase the LTV (Life Time Value).

Decrease CAC (customer acquisition cost).

Reduce the tax burden.

Improve profitability and profitability.

Undoubtedly, a good SVA makes all the difference to subscribers and especially for internet providers .

For when generating value for ISP providers and their subscribers, it becomes a necessity, an important asset and adds a competitive strategic value and differential for the internet provider business model.

Especially because the SVA format for internet providers offers the benefits of safety, protection and control in the use of the subscriber .

But mainly, because it generates a great tax economy for internet providers .

Increase and decrease : the advantages and differentials of an SVA for internet providers

When internet providers deliver a stable and quality broadband for internet access, they comply with their primary purpose as SCM (Multimedia Communication Service).

At the moment when internet providers offer really useful and innovative sasters to subscribers , they achieve the loyalty of their customers.

For sure, a good SVA makes a difference in subscribers 'lives and contributes a lot to increase users' satisfaction and loyalty .

In practice, then, we can say that SVAs are of great importance for the administration of ISPs .

Since they contribute to obtaining indicators and valuable metrics for recurrent business management .

Increasing LTV (Life Time Value) is one of the significant indicators impacted by good SVAs. For the more satisfied the subscribers are, the more faithful they become.

Thus, the revenue that each customer leaves to internet providers, as a customer, tends to increase . Because satisfaction in the business relationship tends to raise the number of months as a subscriber. Often, it retains the relationship for years on end.

At the same time, the higher the LTV index, the better the relationship with another important metric , CAC (customer acquisition cost).

Decreasing CAC (customer acquisition cost) is another important impact on the ISP business model.

Similarly, good SVA solutions for internet providers help to reduce the effort (financially accounted for) to win a new subscriber.

Just for example, a relationship considered ideal between LTV and CAC is from 3 to 1 . That is, a subscriber must remain as a client for enough internet providers to “leave” (LTV) at least three times more than the investment made to have it (CAC).

Reduce and improve: the advantages and differentials of an SVA for internet providers

Above all, the main advantage of an internet for internet providers is to make it possible to pay less taxes and thus increase the profitability of the business. The direct consequence is to improve profitability.

That's why value -added services are so important to the ISP business model. In this sense, the relevance of management is clear to choose and decide on the best SVA solution for internet providers .

While good internet solutions for internet providers make a difference when increasing LTV and decrease CAC, when the focus is on reducing tax burden and improving profitability and profitability, they are indispensable!

After all, internet providers do not pay ICMS and can mean a huge tax reduction. According to tax planning, it can mean a variation between 20% and 50% less, only in ICMS.

Since ICMS rates on telecommunication services (SCMS) can vary between 27% and 37%, depending on the Brazilian state. Undeniably, the tax economy is more than relevant to increasing the profitability of internet providers.

The importance of tax planning for internet providers (ISP) is undoubtedly evident and dependent on at least four factors:

the tax rate in each state of the federation;

of qualified management;

of good tax planning; and

of a good SVA solution for internet providers.

Surprisingly, market data indicate that the vast majority of ISP are unaware of the advantages and benefits of SVA solutions for internet providers.

A good SVA solution for internet providers

Lumiun ISP is a SVA for internet providers that offers competitive advantages , differentials and benefits for ISPs and their customers.

The SVA -format DNS filter for Lumiun ISP internet providers is designed to offer more security and control on the subscriber and increase the profitability of ISP providers.

Discover competitive advantages and strategic differentials of Lumiun ISP , the best SVA solution for internet providers .