Trends for ISP Growth

February 17, 2022

8 minutes of reading

What's next for the internet provider market? What are the trends? Will the value-added service remain essential to the ISP's business model? Continue reading and discover trends for ISP growth and the relevance of useful and profitable SVAs for internet providers .

In addition to sharing market information and insights with entrepreneurs, managers and IT professionals from internet providers, the idea of this article is, in the end, to define the most appropriate punctuation for the title of this article, statement (.) or question mark (?)

The future of the ISP with useful and profitable SVAs

More and more internet providers consider value-added services (VAS) to be a strategic element to add value to their business model .

In fact, SVA solutions in the portfolio represent an important strategy to increase profitability and generate even more advantages for ISPs . Both as a way to make the business profitable, and to attract and retain subscribers, for example.

Let's remember five important characteristics that make useful and profitable SVAs so important for internet providers.

#1 New service, new source of revenue

With each new useful and profitable SVA added to the portfolio, new revenue opportunities are created . This is certainly a demand from subscribers, who always want new services, advantages and utilities when they decide to buy broadband internet access from an ISP.

#2 Interesting recipe alternative

Even though an ISP's main activity is the Multimedia Communication Service (SCM), useful and profitable SVA packages are interesting billing strategies for the ISP .

#3 Capture more subscribers

Of course, useful and profitable SVAs are also strategic for the marketing and promotional strategies of internet providers. When comparing costs and benefits, free SVA packages may be a promotional possibility . Without a doubt, another benefit, which allows you to maximize strategies for attracting subscribers.

#4 More useful and profitable SVAs, less taxes, more profit

By aggregating useful and profitable SVA packages , the ISP's profitability increases . SVAs for ISPs undeniably generate tax savings and contribute to better tax planning . Thus, they provide the opportunity for the internet provider to pay less taxes, increase business profitability and improve profitability.

#5 Build subscriber loyalty

Whenever the internet provider is efficient, efficient and effective in providing broadband internet access, subscribers are satisfied. However, it is an obligation and the minimum expected. Therefore, useful and profitable SVAs add value to the ISP . After all, they provide even more benefits and facilities to subscribers. In this way, together with the quality of internet connectivity, they guarantee subscriber loyalty.

Pay attention to the market and the future to grow

On the Lumiun Blog , several articles about VAS for internet providers are accessible. However, two more recent articles on SVA for ISP are relevant and complementary to this one, on useful and profitable SVAs and the future of ISP.

The first provides information about technology and VAS that have the potential to generate new opportunities for internet providers and offer more advantages to subscribers: Wi-Fi 6 and 5G – New opportunities and more advantages .

The second, shares marketing tips to make a difference and grow the internet provider through and profitable VASs , in a viable and sustainable way: Marketing tips for internet providers .

In fact, the growth of the economic business sector in the internet market certainly depends on a series of variables that include, among the main ones, good management practices , SVA solutions in the portfolio and tax adequacy .

In addition to these aspects, business owners, managers and IT professionals need to be aware of news, technologies, legislation and trends . Mainly because the internet provider market is increasingly competitive and dynamic.

In this sense, I will bring some excerpts, article summaries and a short video (3:50) about trends, products, services, strategies, technologies and useful and profitable VASs that should impact the market and the future of internet providers .

At the end of each block, you will have a link to the complete material available, so you can access and find out more, if it is of interest to you. Also, because researching and comparing is always a necessary and recommended practice .

Trends that are part of the future of internet providers

First, let's look at the short video from Infra News Telecom , with its editor Simone Rodrigues . In it, she gives a preview of the interesting content that is part of the set of materials in the 2nd Special Internet Providers Edition of Infra News Telecom .

These are very interesting texts, which give a good idea of what’s to come:

✅ New paths for ISPs

✅ Providers arrive on mobile networks

✅ ISPs will be fundamental for the dissemination of 5G in Brazil

✅ Neutral networks open new opportunities for ISPs

✅ MVNO: An expanding market

✅ Internet TV generates new business for ISPs

✅ Edge computing improves the user's browsing experience

✅ DDoS: How to face network zombies

✅ xGPON and XGS-PON technologies gain momentum with 5G

✅ Sales management and customer relations require a mix of technology and in-person service

# What is an MVNO?

MVNO , an acronym in English for mobile virtual network operator , defines a virtual mobile network operator that, basically, buys the right to use part of the infrastructure offered by one or more mobile operators (these ones, with towers and antennas). Therefore, you don't need to worry about making heavy investments, being responsible only for marketing and billing the service, in addition to customer service .

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# Differentiators of MVNOs

Cell phone plans are currently more or less attractive depending on the added benefits. Not only music and video streaming, virtual newsstands and bookstores, discount clubs, but also a huge variety of other useful and profitable VASs. The MVNO operator market continues to grow rapidly , especially with the arrival of 5G. But in addition to the B2B market, coming through machines, there is a great opportunity in the B2C market. You just need to know how to take advantage of it.

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# Regional MVNO X large operators

There is a large market for small and medium-sized MVNO operators. In fact, a result of the gaps left by the Telecom giants. Therefore, local operators have the opportunity, with the same infrastructure as large operators, to develop strategies focused on some sectors and market niches. However, to continue growing, they must focus on the B2C market and add products and services (streaming, educational platforms and other useful and profitable VASs) that provide expanded experiences .

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# Entertainment SVAs gain ground

The purpose of useful and profitable SVAs is to offer additional experiences to subscribers and encourage them to use the operator/provider's core service, which allows them to increase revenue. In practice, they bring a huge number of opportunities to explore new revenues, with low or even no tax incidence. The importance of useful and profitable VASs is so great that they represent 80% of ISP revenue. In this sense, the effort to offer something more, really useful and of quality, is evident. In two years, complaints to Anatel regarding SVAs fell by 65% . The tendency is to simplify and streamline the offer and direct efforts to provide useful and profitable VASs for entertainment, education and subscriber internet security and control .

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# Macrotrends for the ISP market

macro trends previously predicted for the ISP market remain valid for 2022 and beyond . Firstly, because of the exponential growth in demand for internet access that the pandemic caused. Secondly, because the largest portion of consumers (marketshare) remains unserved by large operators.

Machine-to-machine communications will increase demand
Streaming Services
The focus of the ISP market will be on speed
Focus on the growth of classes “D” and “E”
New scenario of competition with large operators
Focus on ISP management

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# What to expect from the future of the internet?

The prospects for the future of the internet certainly depend heavily on the way society tends to develop. That is, whether there will be changes in behavior , the need for new regulations , refinement of technologies , etc. What can be said is that the online world, as we experience it today, will be significantly overcome.

# Complete connection with various types of objects

Probably a very common reality in the internet scenario is an increasingly connected digital environment. Online devices have become inseparable companions of human beings. Therefore, from wearables (worn on the body), everything must be connected to the network and exchange data and information in real time. In this way, Artificial Intelligence (AI) and Internet of Things (IoT) resources tend to expand control over our internet usage patterns and behavioral preferences and make ways of working more flexible.

# Security addition

Finding ways to deal with more complex interactions is important, especially when it comes to traceability and data storage . Proof of this is that privacy and control over personal and sensitive data in Brazil today has specific legislation – General Law for the Protection of Personal Data, the LGPD, ( Law nº13,709/2018 ). In fact, the trend is for companies to invest in technologies to ensure effective protection and compliance with the LGPD, VPN solutions and firewall . The trend for the future of the internet is for even more significant legal intervention.

# How to enable necessary advances

Without a doubt, greater demand requires greater internet operating capacity. One idea and trend is the reconfiguration of the network architecture, through routed optics technology (RON), which would be defined by software and distributed “as a service” . In addition to simplifying infrastructure, this can also result in chain savings, with scalable networks capable of supporting traffic demands and more agile operations. Finally, there are many new developments in the Web universe. Therefore, internet providers must be attentive to aligning strategies with market demands and always prioritize the ability to customize useful and profitable VASs .

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# Opportunities and challenges with 5G

5G has already started to be distributed in Brazil. In addition to improvements for users, technology also brings opportunities and challenges for those who are entrepreneurs in the internet provider segment. Among other advantages, providers will be able to reduce the use of cabling. On the other hand, it will be necessary to guarantee fiber coverage for the technology to work well, for example.

Know more.

Useful and profitable SVAs are part of the ISP’s present and future

It's nothing new, but it's always good to reinforce that billing strategies for ISPs with SVA packages are important to maximize the financial return for internet providers .

Especially because they allow tax reduction and, consequently, increase profitability . In other words, the idea is to pay less tax and earn more , through SVA packages .

Therefore, the focus of entrepreneurs and internet provider managers should be to invest in VAS for ISPs . Above all, because they are useful, profitable and profitable solutions .

Billing more with SVA packages is undeniably a completely viable billing strategy with better results and lower costs.

Don't forget to find out more SVA solutions for internet providers on the Lumiun Blog . Discover the advantages, opportunities and benefits of SVAs for ISPs .

Just click on one of the links below to access.