Value-added Service VAS Characteristics

All VAS share the same characteristics:

1. Not a form of basic service but rather adds value total service offering
2. Stands alone in terms of profitability and/or stimulates incremental demand for core service(s)
3. Can sometimes stand alone operationally
4. Does not cannibalize basic service unless clearly favorable
5. Can be an add-on to basic service, and as such, may be sold at a premium price
6. May provide operational and/or administrative synergy between or among other services – not merely for diversification

Every VAS will demonstrate one or more of the above characteristics. Furthermore, a value-added service will never stand in stark contrast to any of the above characteristics.

VAS also have a certain time dimension associated with them. Subjectively speaking, a value-added service today becomes a basic service when it becomes sufficiently common place and widely deployed to no longer provide substantive differentiation on a relative basis.
Source: http://www.mobilein.com/what_is_a_VAS.htm

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