In the early days, telecom service providers focused primarily on helping people connect by making voice calls. The job was simple: provide customers with voice services.
But over time, this began to evolve. As technologies advanced and consumer needs shifted, telecom operators introduced fixed-line data, SMS, mobile services, and eventually, mobile data; all of which revolutionised how people communicated and accessed information on the go.
And with the rise of smartphones and the internet, telcos were pushing to become more than just connectivity providers. And now, they’re expanding again.
Today, telcos have become platform businesses that provide a curated ecosystem of third-party products and services.
Think of the telcos of old as a single store located in a much bigger shopping mall that offered very niche solutions. But now, they’re in the entire mall, which brings together different sets of products and services into a bundle or package so that it’s easier for customers to get everything they need in one place.
These value-adds enrich the customer experience, deepen engagement and open strategic new revenue streams.
For example, a customer who wants to leverage the speed and reliability of their new fibre line could also subscribe to Netflix or EA Games via their current service provider and get charged for that service on their telecoms bill. Similarly, if an enterprise customer wanted Microsoft 365 memberships for their employees, they can now buy a bundle from an operator and then get billed for their enterprise telecommunications, as well as their Microsoft 365 subscriptions.
Mobile operators, fibre providers, MVNOs, and others are all incredibly well-positioned to become an on-sell partner and distribute another business’s products and services.
By doing so, brands can instantly access new revenue streams. These service providers already have all the necessary information to send their customers a bill, so they can simply add whatever extras their customers are buying to their bill.
Additionally, these service providers have a wealth of information about their customers that they can use to target customers based on their data usage patterns.
How does it all work? APIs allow these different platforms and applications to communicate and exchange data with each other.
This essentially creates a digital bridge between the operator and third parties, making it possible to effectively and securely distribute a partner’s products and services.
By offering relevant, trusted third-party solutions alongside core connectivity, telcos can evolve into digital ecosystem partners.
Convenient for customers, profitable for service providers, this kind of approach can be the difference between a one-time buyer and a long-term loyal customer.
VAS-X serves as the technology provider and supports telcos with the central API connectivity and billing environment that allows them to offer a plethora of new billable services to their subscribers, opening up revenue streams and driving subscriber lifetime value.
