Unlocking New Revenue with VSaaS Model: A Game-Changer for Telcos and ISPs

In an increasingly connected world, video surveillance has evolved beyond a simple security solution; it is now a digital utility. For telecommunications companies (telcos) and Internet Service Providers (ISPs), Video Surveillance as a Service (VSaaS) is becoming a high-value opportunity to expand their service portfolios, increase Average Revenue Per User (ARPU), and leverage existing infrastructure in innovative ways. VSaaS Business Model for Telcos and ISPs becomes a game changer that influence the global processes.

What is VSaaS?

VSaaS is a cloud-based video surveillance model where video data is captured, transmitted, stored, and managed in the cloud, provided to the end user through a subscription-based payment structure.

Unlike traditional surveillance systems that depend on on-premises DVRs or NVRs, VSaaS offers remote access, real-time alerts, advanced analytics, and flexible storage options all managed via the internet.

Telcos and ISPs are ideally positioned to deliver VSaaS because they already possess robust network infrastructure, maintain strong customer relationships, and have established billing systems in place.

What are VSaaS advantages and demand from the users side?

From the client perspective, whether a business or a residential community, the transition to Video Surveillance as a Service (VSaaS) provided by ISPs and telcos offers a significant advantage over managing traditional on-site surveillance or contracting with dedicated security firms.

Businesses and residential communities can leverage the existing fiber infrastructure already interconnected in their locations. Instead of investing in and maintaining their own complex video surveillance systems, they can subscribe to a service that leverages the telco’s network, ensuring high bandwidth and reliable connectivity essential for real-time video streaming and cloud storage.

This approach eliminates the need for clients to purchase and maintain expensive on-premises hardware like DVRs or NVRs. By subscribing to VSaaS through their existing ISP or telco, businesses and residents gain access to:

• Cost Efficiency. They shift from capital expenditures (CapEx) for equipment to predictable operational expenses (OpEx) through monthly subscriptions.
• Seamless Integration and Setup. Since the connectivity is already established, deploying VSaaS becomes a streamlined process with minimal disruption.
• Scalability. Clients can easily add or remove cameras and storage capacity as their needs evolve, without worrying about hardware limitations.
• Remote Accessibility. Users can access live and recorded footage securely from anywhere via web portals or mobile apps, enabling remote monitoring and management.
• Enhanced Security and Resilience. Data is stored securely in the cloud, often with redundancy and advanced encryption, protecting footage from physical damage or theft.
• Automatic Updates and Maintenance. The telco or ISP manages software updates and system maintenance remotely, ensuring the system is always current and secure.

Understanding the VSaaS Business Model for Telcos and ISPs

The VSaaS model is built around a subscription-based approach to accessing cloud-hosted surveillance services, typically offered through a multi-tier pricing structure.

 Here’s how it works for Telcos and ISPs:

1. Infrastructure Utilization

ISPs and telcos already possess the fundamental connectivity infrastructure, including broadband, fiber, and wireless networks, and often have existing edge infrastructure, such as local data centers or customer premises equipment (CPEs). VSaaS simply integrates a video analytics and storage application layer over this existing foundation.

This approach allows telecommunications providers to maximize the utilization of their current network assets by adding a high-value service without requiring significant new capital investments in hardware. They leverage the bandwidth and reliability they already provide to deliver real-time video monitoring and cloud storage.

2. Service Tiers

VSaaS typically comes in multiple tiers:

• Basic Tier – live streaming, limited cloud storage, mobile access
• Standard Tier – motion-triggered recording, AI analytics, longer retention
• Premium Tier – facial recognition, object tracking, API access, SLA-backed support

These tiers align naturally with consumer and business segments.

3. Hardware-as-a-Service (Optional)

Some telecommunications providers offer comprehensive VSaaS packages that include both the cameras and professional installation services. In these models, the equipment is typically leased or included as part of an upfront bundle or a recurring monthly rental agreement.

4. White-Label Opportunity

VSaaS can be white-labeled, allowing Internet Service Providers (ISPs) to present it as their own proprietary smart surveillance solution. This enables seamless integration into the provider’s existing billing and Customer Relationship Management (CRM) systems.

By offering a white-labeled service, ISPs can maintain brand consistency, strengthen customer loyalty, and simplify the user experience by providing a single point of contact for both internet connectivity and surveillance services. This approach also streamlines operational workflows and ensures accurate billing and customer management.

5. Add-On Revenue Streams

• Extra cloud storage
• Additional cameras or users
• AI features (e.g., license plate recognition)
• Historical video archiving (compliance-oriented)

This model creates predictable, recurring revenue and strengthens customer lock-in through bundled value.

Summarizing. Why VSaaS is a Natural Fit for Telcos and ISPs

1. Leverage Existing Network Infrastructure. You already operate powerful, low-latency networks, which are ideal for streaming and transmitting video data.
2. Expand Service Bundles. VSaaS complements existing offerings such as broadband, Wi-Fi, smart intercoms, in-house video surveillance and IoT services.
3. Recurring Revenue Model. The subscription-based nature of VSaaS aligns seamlessly with your current billing cycles and customer management systems.
4. Differentiate from OTT Competition: Adding smart, AI-enabled surveillance helps move beyond commodity internet and into high-value smart services.

How Aipix Powers the VSaaS Business Model for Telcos and ISPs

At Aipix, we provide a complete, telco-friendly VSaaS platform featuring:

• AI-Enhanced Analytics. Capabilities include smart motion detection, facial recognition, license plate detection, and more.
• Cloud-Native Platform. The platform is scalable, secure, and offers redundancy across various regions.
• White-Label Capabilities. Allows for complete customization under your brand identity, delivering a consistent experience to your customers.
• Flexible Deployment. Offers pure cloud, hybrid edge-cloud, or private cloud options to suit specific operational needs.
• Fast Time-to-Market. Enables the launch of a new VAS service in just 7 days.

Use Cases Telcos and ISPs Can Monetize

The VSaaS Go-To-Market Tips for Telcos and ISPs

1. Bundle with Internet Plans
   Offer entry-level VSaaS access as a value-add to premium connectivity packages.
2. Leverage SMB Sales Teams
   Cross-sell VSaaS with small business connectivity and managed Wi-Fi offerings.
3. Deploy White-Label Apps
   Brand and control the customer experience with minimal overhead.
4. Offer Tiered Plans
   Accommodate everything from basic home users to high-end enterprises.
5. Market the Intelligence, Not Just the Cameras
   Emphasize real-time alerts, smart search, and AI detection over just video storage.

VSaaS Business Model for Telcos and ISPs: The Foundation, Benefits and Prospectives

VSaaS is more than a product; it is a platform for growth. For telcos and ISPs, it presents a compelling opportunity to generate new revenue, reduce customer churn, and offer high-value services that B2B and B2C customers rely on daily.

At Aipix, we are enabling service providers to capitalize on this opportunity with minimal investment, rapid deployment, and full scalability.

Aipix is your partner for VSaaS success. Ready to launch your own branded VSaaS service? Contact us and let’s build your new growth engine.