Why do ISPs look for SVAs?

October 27, 2021

5 minutes reading

Because an SVA for internet providers is a useful and profitable management and digital security solution for internet providers of all sizes (small, medium and large). That simple.

Firstly, the usefulness of an SVA for internet providers has to do with the subscriber's level of security and control over the internet .

In other words, by delivering really useful advantages and benefits to users of internet providers. Which certainly increases user satisfaction and results in customer loyalty .

Secondly, but no less important, we have the issue of the increased profitability that an SVA for internet providers provides.

Without a doubt, this aspect is the most relevant reason and the main answer to the title question of this article: why do internet providers look for AVSs?

In fact, the usefulness of an SVA for internet providers is what makes it profitable. As a consequence, it is a differentiator and a competitive advantage that increases the profitability of internet providers (ISPs) .

Advantages and differences of an SVA for internet providers

Value Added Services (SVAs) are solutions developed and improved to improve the subscriber's experience when using the internet from small, medium and large internet providers.

In principle, these are advantages and differences of an SVA for internet providers that directly impact customers .

However, the impacts that really matter are due to the quality and benefits of the services provided and offered to ISP subscribers.

Above all, because SVAs allow optimizing the administration and management of internet providers . In fact, the following are essential to make the business model of providing internet access viable:

Increase LTV (Life Time Value).

Reduce CAC (Customer Acquisition Cost).

Reduce the tax burden.

Improve profitability and profitability.

Without a doubt, a good VAS makes all the difference for subscribers and, especially, for internet providers .

Because, by generating value for ISP providers and their subscribers, it becomes a necessity, an important asset and adds strategic value and competitive differentiation to the internet providers business model.

Especially, because the SVA format for internet providers offers the benefits of security, protection and control over the subscriber's use of the internet .

But, mainly, because it generates large tax savings for internet providers .

Increase and decrease : the advantages and differences of an SVA for internet providers

When internet providers deliver stable, quality broadband for internet access, they fulfill their primary purpose as an SCM (Multimedia Communication Service).

The moment internet providers offer really useful and innovative VASs to subscribers , they win the loyalty of their customers.

Without a doubt, a good VAS makes a difference in the lives of subscribers and contributes greatly to increasing user satisfaction and loyalty .

In practice, then, we can say that SVAs are of great importance for the administration of ISPs .

Since they help to obtain indicators and valuable metrics for managing businesses with recurring sales .

INCREASING LTV (Life Time Value) is one of the significant indicators impacted by good SVAs. Because, the more satisfied subscribers are, the more loyal they become.

Therefore, the revenue that each customer leaves to internet providers, as a customer, tends to INCREASE . Because satisfaction in the commercial relationship tends to increase the number of months as a subscriber. Often, the relationship lasts for years.

At the same time, the higher the LTV index, the better the relationship with another important metric , CAC (Customer Acquisition Cost).

DECREASING CAC (Customer Acquisition Cost) is another important impact on the ISP business model.

Likewise, good AVS solutions for internet providers help to DECREASE the effort (accounted for financially) to acquire a new subscriber.

Just to give an example, a ratio considered ideal between LTV and CAC is from 3 to 1 . That is, a subscriber must remain a customer with internet providers long enough to “leave” (LTV) at least three times more than the investment made to have it (CAC).

Reduce and improve: the advantages and differences of an SVA for internet providers

Above all, the main advantage of an SVA for internet providers is to make it possible to pay less taxes and, thus, increase the profitability of the business. The direct consequence is to improve profitability.

This is why value-added services are so important for the ISP business model. In this sense, the relevance of management in choosing and deciding on the best SVA solution for internet providers .

While good SVAs solutions for internet providers make a difference when it comes to increasing LTV and reducing CAC, when the focus is on reducing the tax burden and improving profitability and profitability, they are indispensable!

After all, SVAs for internet providers do not pay ICMs and can mean a huge tax reduction. Depending on tax planning, it can mean a variation between 20% and 50% less, only in ICMs.

Since ICM rates on telecommunications services (SCMs) can vary between 27% and 37%, depending on the Brazilian state. Undeniably, tax savings are more than relevant to increasing the profitability of internet providers.

The importance of tax planning for internet providers (ISP) is undoubtedly evident and dependent on at least four factors:

the rate applicable in each state of the federation;

qualified management;

good tax planning; It is

of a good SVA solution for internet providers.

Surprisingly, market data indicates that the vast majority of ISPs are unaware of the advantages and benefits of SVA solutions for internet providers.

A good SVA solution for internet providers

Lumiun ISP is an SVA for internet providers that offers competitive advantages , differentials and benefits for ISPs and their customers.

The DNS filter in SVA format for Lumiun ISP internet providers was developed to offer more security and control over the subscriber's internet and increase the profitability of ISP providers.

Discover the competitive advantages and strategic differences of Lumiun ISP , the best SVA solution for internet providers .