How does VSaaS affect the traditional telecom metrics?

How VSaaS Offering Deployment Influences the Telecom Metrics Change?

Telecom operators are actively prioritizing high-value digital services that drive sustainable, long-term growth. Video Surveillance as a Service (VSaaS) stands out as a strategic solution, enabling businesses to enhance operational efficiency while opening new monetization opportunities for service providers.

More than just a security offering, VSaaS directly impacts core telecom KPIs. It generates predictable recurring revenue, increases ARPU through value-added service bundling, and reduces churn by strengthening customer dependency on integrated digital ecosystems. What was once considered an optional add-on has rapidly evolved into a business-critical service, a powerful engine for telecom revenue growth and competitive differentiation.

Why Telecom Operators Are Well Positioned in delivering VSaaS?

VSaaS (Video Surveillance as a Service) operates as a cloud-based subscription service. It enables video monitoring through a scalable recurring revenue model for traditional surveillance systems. The VSaaS provides customers with ongoing video control, remote system management under fixed-rate payment plans. 

Selon Aipix VAS platform architecture, being a rapid deployable tool, it ensures customers can easily start using the video surveillance service, while telecom operations maintain continuous revenue generation.

• Telecom operators can use their structural advantages to establish VSaaS as their core service. Telcos can quickly deploy and expand their VSaaS through their existing infrastructure. Based on their wide fiber-optic networks together with 4G/5G mobile coverage and strong Wi-Fi systems, telcos provide dependable high-speed video surveillance solutions. 
• The modern cloud and edge infrastructure enables quick data processing, distributed storage and real-time video analytics. As a result, it forms an efficient VSaaS system that delivers instant responses. 

The assets enable telecom providers to deploy VSaaS solutions with minimal obstacles. It decreases their expenses for acquiring new customers and buying equipment, and allows them to enter the market more quickly. 

VSaaS operates as a core business expansion factor through its combination of infrastructure with technology and operational efficiency. For a decade it has been going beyond its status as an additional service for contemporary telecom operations. In 2026 VSaaS became a powerful driver of telecom business performance, delivering stable recurring revenue while deepening and extending customer relationships.

Annual Recurring Revenue (ARR) generated by VSaaS impact on Telecom Business

SaaS businesses aim to achieve yearly ARR growth rates which should range from 20% to 40%. VSaaS enables telecom operators to achieve these targets also. 

Service performance evaluation depends on ARR, as it shows the subscription-based revenue which service providers receive during each year. 

Introducing VSaaS enhances ARR through multiple channels:

• Subscription Model Revenue. VSaaS is delivered as a recurring subscription, typically monthly or annual. As a result it provides telecom operators and ISPs with a steady and predictable revenue stream.
• Upsell Opportunities. Existing telecom customers can get VSaaS add-ons. It increases recurring revenue per subscriber and strengthens customer lifetime value.
• Enterprise and Multi-Site Accounts. Large businesses with multiple locations often adopt multi-camera VSaaS packages. Traditionally that type of B2B-clients creates higher-value contracts and significantly boosts approximate ARR.

Look at this simple case study. The telecom operator generates $1.2 million in ARR because its 10,000 subscribers each pay $10 per month for VSaaS services. The service creates financial stability because its premium package deals with Enterprise customers lead to increased revenue growth.

Average Revenue Per User (ARPU) Raise with VSaaS impact on Telecom Business

Selon PwC’s Global Telecom Outlook, global ARPU across mobile, fixed broadband, and voice services is expected to decline gradually through 2028. It’s predicted together with ARPU trending downward as competitive pricing and flat consumer willingness to pay continue. The decline is forecast at around –2% per year on average across services. 

So adding VSaaS to a connectivity plan raises ARPU. Especially when bundled with analytics, archive tiers, and service guarantees.

Now more and more telecom companies and ISPs worldwide give VSaaS with broadband or 5G internet plans. This helps telecom companies and ISPs give customers more value and get steady income. 

These extra services often have:

• monthly subscription fees per video camera or per user
• tiered cloud storage options
• advanced analytics (motion detection, object recognition)
• professional management and support

Industry practitioners estimate that adding VSaaS can significantly increase ARPU, especially when bundled with core telecom services: ARPU increases of ~15%–20% when operators integrate cloud video surveillance services into their portfolio (depending on customer segment and bundle depth).

Lowering Churn Rate while delivering VSaaS

Telecom industry average churn ≈ ~21–25% annually according to benchmarking data for 2025. This reflects ongoing competitive pressure, pricing battles, and service quality issues that drive customer switching.

VSaaS reduces churn because it transforms a basic connectivity service into a business-critical platform. Customers invest in cameras and rely on continuous cloud video storage, analytics, and integrations. They all create both technical and psychological switching costs, making it inconvenient and risky to move to another provider. As the service becomes embedded in daily operations (especially for businesses), they increase perceived value and reduce the likelihood of cancellation.

Typically lowers churn by 10–20% (for example, from around 20–25% annually for connectivity-only customers to about 10–19% for those using VSaaS), especially in business segments where churn can fall below 5%, while also improving net revenue retention through higher ARPU and expansion services.

Strategic Benefits Beyond Financial Metrics

The VSaaS popularity and success allows founders to create new solutions around this system. It will drive progress in smart city development, retail data analysis, industrial Internet of Things applications and artificial intelligence ecosystem. 

VSaaS enables organizations to achieve better utilization of their internal assets through its system. The increasing use of video content creates two main requirements for telecom operators to generate revenue from their underutilized infrastructure assets. The growing need for upstream bandwidth, cloud storage and edge computing services enables telecom operators to earn money from their unused infrastructure assets.

Conclusion

VSaaS helps telecom operators reach their business goals through its ability to create continuous revenue streams. VSaaS is proven to boost ARPU, reduce customer churn, and improve network infrastructure management through digital service delivery. As a result it helps them serve more customers and protect their core revenue streams. 

The service functions as a strategic transformation tool which delivers dual benefits to financial performance and business strategy in modern digital market environments.

A successful VSaaS launch requires a trusted provider for establishing a reliable service delivery system. Aipix provides a VSaaS platform which targets telecom operators to help them establish efficient cloud video surveillance deployment and management systems for revenue generation. 

The system improves on three vital business performance metrics which consist of ARPU, recurring revenue and customer retention rates. The telcos don’t need to create innovative new products by themselves to generate extra revenue while providing value to customers. Aipix provides it instead of this with Marque blanche and ready to run platform. 

So as a result, the Aipix VAS platform functions as a telecom operations system which maintains continuous operational stability to enable business growth. Operators who select Aipix will obtain a VSaaS solution which enables them to build their current offerings while establishing themselves as digital service pioneers.

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