VAS or Value Added Services is a term that is used to refer to service options which are complimentary to a core service. Simply put, these represent the non-core services. The term VAS is mostly popular in telecommunication industry. However it is not restricted for that. VAS are valuable services for these organizations in terms of satisfying customers.
Some examples for Value Added Services would be able to provide a clear understanding on what they actually are. A core service for a telecomunication company are the voice calls. A VAS provided for voice calls would be "audio conferrence calls", which would facilitate multiple subscribers to involve in the call. Another example could provided using a Beauty Salon. For every Haircut you go through you might receive a hair massage for a specific period. These Value Added Services could be free or provided with a relevant fee. For instance, in Mobile companies, SMS, MMS and GPRS are actually are Value Added Services. But since they have become so common, no additional costs are charged except the normal service charge. However, Mobile games, and other new facilities are charged with modest yet a relatively higher amount according to their values.
VAS can be developed in-house or using third party content providers. These 3rd parties are also called as VASP (Value Added Service Providers). Usually, VASPs connect to the operator using protocols like Short Messaging Peer-to-Peer protocol (SMPP) and then connecting either directly to the Short Message Service Center (SMSC) or else to a Messaging gateway that allows the operator to control and of the content better.
The benefits VAS to the operator includes the increase in Revenue and also achieving customer delight and new untapped markets. This gives them competitive advantage over competitors as well. The customers will have the opportunity to enjoy a wide and a creative variety of services according to their needs.
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