Value added services

Value Added Services In Telecommunication: 3 Things You Must Know!

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Telecommunications companies have progressed far beyond providing basic voice and data services. They now provide a wide range of value added services (VAS) that improve the customer experience and generate new revenue streams.

Without wasting much of your time, let’s swiftly take a look at:

  • What Value added services are in the telecom industry
  • The major segments in value added service market, and
  • Terms of service VAS providers are to abide with

What is VAS in the telecom industry

VAS in the telecom industry refers to additional services that are not within the core telecommunications services like voice calls and text messages.

Value added services are exceptionally useful as it makes room for Entertainment, Marketing, Advertising, Commerce, and General Services to end users.

These services could include mobile banking (payment service banks and other conventional banking), Multimedia messaging, social media access, content-based added services like gaming, ringback tunes, and brainstorming services, and so on. Some of these VAS are provided at no additional cost to the customer, while others may be offered for free and also as part of a bundled package.

Mobile Network operators can either provide these services in-house or through a third party value-added service provider, also known as a content provider.

Few examples of value added services

Mobile banking: Mobile banking is a value-added service that has grown in popularity in recent years. Customers can use their mobile devices to manage their bank accounts and make transactions. Checking account balances, transferring funds, and paying bills are all examples of this. Mobile banking is especially beneficial for people who are constantly on the go because it allows them to manage their finances from any location.

Content-based added Services: These services provide customers with a variety of entertainment options on their mobile devices. These services are charged separately, but they can also be included in bundled packages. For example, caller tunes, game subscriptions, and many others.

MMS messaging: MMS messaging is a very popular VAS in the telecommunications industry. Customers can send and receive text and multimedia messages on their mobile devices using these services. Many customers consider these services to be a convenient way to communicate with friends and family, and they are frequently included at no additional cost in mobile plans.

Call Waiting: Call waiting alerts customers to incoming calls even when they are already on the phone. These services are especially beneficial for people who receive a high volume of calls because they can assist them in better prioritizing and managing their calls.

Voicemail: Another VAS that is frequently included at no extra cost in mobile plans is voicemail. Customers can use this service to record and retrieve voicemail messages when they are unable to take a call. This is especially useful for people who frequently travel or work in places where they are unable to answer phone calls.

Web/Social Media access: This service provides customers with free access to selected social media platforms such as Facebook, Ayoba, and Operamini.

VAS Segments in Nigeria Telecommunication industry

The VAS market consist of four major segments, and the relevant market participants are as follows:

  • Network Operators
  • Aggregators
  • content providers, and
  • Developers of content, applications, and platforms.

Network Operators: In order to deliver VAS to the end user, network operators must give the subscriber the final link.

Aggregators: Aggregators must offer a concentration point to control the number of devices that can connect directly to the operators, removing the requirement for Content Service Providers to maintain several physical connections to each Network Operator. They act as a link between network operators and content providers.

Content Providers: The only players who pool, host, and distribute content and applications using their own hardware and software platforms are content providers and applications. This category of providers includes both telecommunications companies and independent businesses.

Developers: Developers are non-licensed, independent content creators and application service providers.

What VAS providers are bound to do!

While value-added services improve the client experience, VAS suppliers are required to be bound by the following terms and conditions:

  • Avoid sending or having others send unsolicited, random telecommunications messages on their behalf (SPAM).
  • The consumer must be able to ‘opt in’ or ‘opt out’ of any promotion service, whether subscription-based or not.
  • Text messages delivered to customers shall be stored by the service provider for six months or for any time assessed by the VAS provider to be acceptable.
  • Service providers must ensure that no VAS service is promoted as “free” if there is a charge. There should also be no hidden fees for services delivered.
  • The service providers must identify whether it is a subscription service, the program’s terms and conditions must be clearly specified, and service price information must be provided.
  • Service providers must provide customer support for all services. Complaints must be addressed within a fair time limit. And finally
  • VAS providers must follow the Commission’s Quality of Service Regulations and other rules.


Finally, value added services benefit both customers and the service providers. They make it easier for users to communicate and stay connected, while also providing additional revenue sources for telecommunications firms. As technology advances, we may anticipate much more VAS being developed in the future, significantly improving the consumer experience.

Reference Exerming the framework of value added services in the telecommunication sector.

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