April 23, 2008 9:59 PM BST
There was a time when VAS were the services that could be defined within the IN architecture, VAS could be as simple as a caller ID, bacause it added value to the network.
Maybe it would be an idea to explore the value networks add to products we allready know. iTunes are the biggest music store, what value does broadband add to iTunes business idea and what new/old thoughts did Apple take advantage of.
From that perspective, in an IP multi services world VAS is something very different. The first thing to realise is that the delivery chain is broken, and has been for quite some time. Why else is Vodafone Live such a poor financial performer. Most of what can be bought on VF Live can be aquired elsewhere with no addition transportation cost.
So, rather than trying to predict who will be the winner. If telcos continue to super glue products to the delivery chain by bundling such that they can charge/ bill for both product and transport - they will loose the VAS battle.
As long as products/VAS, that are the same in function and form, can be acquired from optional sources there are mechanisms like cross product elasticity and price elasticity kicking in.
So those who do business on normal retail and B2B business principles will have a better chance of success than those who defend the past. This does not mean that the traditional business is going away, but the question was addressing VAS.
....and happy days are here again!