Telecom VAS trend: Get Revenue on VSaaS and Smart Intercom

The telecom VAS trend strategies include Video Surveillance-as-a-Service (VSaaS) and smart intercom / access-control services which offer attractive recurring revenue streams with minimal customer churn. The solution aligns perfectly with operator resources because it utilizes their existing networks and edge computing capabilities and billing systems and field operations and extensive customer database.

The big picture of telecom VAS trend

VSaaS and smart intercom market scale and momentum

• The global VAS market is large and growing . The one estimate pegs the VAS market at about USD 1.09 trillion in 2025 with a projected multi-year expansion.
  
• The VSaaS segment is rising fast: multiple market reports show it. VSaaS valuations in the single-digit billions in the mid-2020s, with CAGRs in the mid-teens; for example, one forecast expects ~USD 6.6B in 2025 and ~15.8% CAGR into the rest of the decade.
  
• Smart intercom / wireless intercom is already a multi-billion market. With a robust compound annual growth rate (CAGR) of 10.8% expected from 2025 to 2033. By the end of 2033, the market is forecasted to attain a value of USD 7.6 billion.
  
• The analysis shows that VAS services will generate more than 20% of operator revenue. As operators expand their services beyond traditional voice and data services. The VAS segment operates as a core business division which exceeds its status as an additional service.
  
• The market faces an urgent need to expand non-connectivity revenue. Telecom headline revenue remains stagnant or decreases in real value across various markets.

Why VSaaS and smart intercom are especially strategic telecom VAS trend

1. Natural fit with operator assets
   The operators currently possess all necessary infrastructure for last-mile connectivity peering/bandwidth and billing system operations. The delivery of cloud video and connected access depends on these essential components to operate both reliably and profitably.
   
2. Subscription economics & stickiness
   The VSaaS and smart intercom services operate as subscription-based monthly services. It includes hardware financing options and managed installation services. The subscription model increases ARPU while decreasing customer churn rates beyond traditional one-time device sales.
   
3. Upsell into existing B2B & consumer bases
   The operators maintain wide reach in SMB and residential markets. They do it through their broadband subscriber base and property management alliances. It makes VSaaS and intercom service promotion affordable.
   
4. High TAM in security + smart building wave
   The transition from on-premise DVR/NVR systems to cloud-based management and managed access control solutions has gained rapid momentum. Security budgets plus smart building investment. The new market size enables operators to generate revenue through platform fees and managed service charges.
   

Concrete strategic moves operators should make to use the telecom VAS trend to revenue

Product & packaging: bundle connectivity + security + service

• The company should provide VSaaS bundles at different levels. It includes Basic storage for seven days and Standard storage with analytics for thirty days and Premium storage with real-time monitoring and incident response. The company should link each service tier to broadband/5G plans through special first-year discounts to increase subscription numbers.
  
• Bundle smart intercom with residential broadband or building management contracts (install + monthly access fee + optional video storage).

KPI to track: attach rate (% of broadband customers with at least one VAS), incremental ARPU per subscriber.

Verticalize on telecom VAS trend: target high-value segments

• Prioritise multi-dwelling units, retail chains, warehouses, logistics yards and SMB fleets – these customers value remote monitoring, incident logs, and SLAs.
  
• The solution needs to offer pre-configured packages which provide property managers with multi-unit dashboards and role-based access and API integration for property management systems.

KPI: ARPU per business customer; churn vs. plain connectivity.

Leverage edge & 5G for low latency/analytics

• Move compute for video analytics and low-latency intercom features to edge nodes to enable real-time detection, anonymization at edge (privacy), and better QoS for live intercom threads.
  
• Sell differentiated low-latency plans (e.g., “security SLA”) at premium pricing for customers requiring instant event handling.

Operational metric: percent of analytics processed at edge vs. cloud; reduction in backhaul usage.

Partner (not just build) — hardware + integrators

• Form reciprocal partnerships: camera OEMs for subsidized hardware, analytics vendors for face/behavior detection, local security integrators for installation and incident response.
  
• Offer a marketplace/API so third parties can integrate (smart locks, alarm panels, building automation).

Measure: partner-driven revenue share; time-to-market for integrations.

Managed services + financing for low friction

• Provide “one invoice” managed installation, hardware financing, and 24/7 monitoring services. That removes friction for SMBs and residential customers who dislike capex.
  
• Use field ops teams (already scaling for last-mile) to upsell and install VAS hardware.

KPI: % of installs converted from field visits; payback period on hardware subsidy.

Privacy, compliance, and trust as selling points

• Build GDPR/PCI/region-specific compliance and privacy-first features (local retention controls, anonymization). Security and trust sell — especially for residential and enterprise customers.

Bottom line of telecom VAS trend

VAS is moving from “nice to have” to strategic must-have. Market forecasts place VAS and related segments in the multi-hundred-billion to trillion scale. While niche but fast-growing categories like VSaaS and smart intercom are delivering subscription economics and strong growth trajectories. A natural, high-leverage frontier for operators to rebuild growth and protect margins.

For telcos ready to operationalize edge compute, leverage field teams, and partner with hardware and analytics vendors, VSaaS + smart intercom represent one of the clearest near-term routes to meaningful, recurring non-connectivity revenue. 

Want to start your telecom VAS journey? Contact us for free consultation!