Send message

Combating Subscription Fatigue in Telecom: The Future of Telecom VAS

9 min read
Published on: 28 Jan 2025
Updated on: 28 January, 2025
Share post on LinkedIn

Subscription fatigue is a growing challenge, with nearly 80% of users frustrated by managing multiple subscriptions and wanting a single platform to centralise them. This issue is especially pronounced in the telecom sector, where subscription-based models dominate, leading to user disengagement, cancellations, and increased competition. Traditional value-added services (VAS), once a key differentiator for telecom operators, now struggle to meet the demands of digital-first customers who expect seamless, personalised experiences. To overcome this, telecom operators must evolve beyond outdated VAS and embrace “next-level VAS” by transitioning into superapps, the future of telecom VAS, offering integrated, centralised solutions to combat fatigue, enhance engagement, and deliver unmatched value.

 

TL;DR

  • What is telecom subscription fatigue? – It’s the frustration users feel from managing multiple subscriptions, with 80% wanting a single platform to centralise them.
  • How does subscription fatigue impact telecom operators? – It leads to lower engagement, higher churn, and tougher competition in an increasingly saturated market.
  • Why are traditional VAS no longer effective? – They lack personalisation, operate in silos, and fail to meet the seamless, integrated experience modern customers expect.
  • What is the future of telecom VAS? – Superapps represent the next step, combining multiple types of services into a single, all-in-one platform.
  • Why are superapps important for telecoms? – The global superapp market is growing rapidly (27.8% CAGR by 2030), showing strong consumer demand for centralised solutions.
  • What are the benefits of superapps? – They increase user engagement, drive in-app purchases through personalisation, and reduce churn by offering all-in-one convenience.

 

What is Subscription Fatigue in Telecom?

Subscription fatigue in telecom is a feeling of overload and frustration with managing multiple add-ons, digital subscriptions, and offers, which leads to user disengagement and cancellations.

This phenomenon has become increasingly common as businesses across various industries adopt subscription-based models, leading to an overload of options and recurring costs for consumers.

As a result of subscription fatigue, telecom operators experience decreased recurring costs, growing customer churn, difficulty in maintaining and boosting engagement rates, and increased competition from within and outside of the industry.

 

Subscription users statisticsSource: Bango

 

Telecom consumers are so fed up with managing multiple subscriptions simultaneously that 78% expressed the need for a single platform unifying all their subscriptions and providing a single monthly bill. The best part is that 51% of consumers want their mobile phone provider to provide this single killer platform.

 

The Evolution of VAS in Telecom

Whether for VOD or music streaming, gaming, e-commerce, or educational platforms, subscriptions are part of telecom VAS services.

But what does VAS mean? In essence, VAS (or value-added services) are the non-core services, or add-ons, provided by a telecom operator. Designed to provide customers with added convenience or entertainment, they generate incremental revenue for telecom providers.

 

Telecom Services: Core Services vs Telecom VAS

 

In an industry like telecoms, it’s difficult for operators to differentiate and maintain customer loyalty, especially in recent years, when voice, mobile data, and other core services have become increasingly commoditised. When offering more minutes or data was no longer enough to get customer buy-in, telecom VAS offered a key way to differentiate, improve customer experience, and increase ARPU in telecom.

 

Companies have created less value in the last decadeSource: McKinsey

 

However, even though the subscription economy is booming, the traditional way of offering VAS in the telecoms industry has certain limitations in addressing the expectations of digital customers.

While VAS services still meet basic customer needs, advancements in their preferences and technology have caused VAS to fall behind in recent years.

Firstly, telecom VAS often lack personalisation. A one-size-fits-all approach is, unfortunately, the telecom providers’ go-to (and not only with VAS). However, with the increased use of AI in telecom, providers have the opportunity to go beyond mass-market offers and deliver more personalised experiences through AI-powered recommendations and targeted marketing, as well as improve telecom customer experience, satisfaction, and loyalty.

Secondly, VAS often exist in silos, making it cumbersome for customers to manage multiple offerings seamlessly. While some providers fight against subscription fatigue by bundling streaming, gaming, music, sports, and more into seamless, centralised consumer experiences, the need for more centralised offerings remains.

 

Bundles are revenue drivers that built our customer base. They lower churn and provide a lot of stickiness.

Super Bundling - Inside Secrets

 

Lastly, it may seem logical and straightforward, but consumers expect up-to-date and relevant add-ons from their provider. In 2025, we still see operators that provide outdated or irrelevant services, jeopardising their revenue, consumer stickiness and brand perception.

In essence, today’s telecom customers expect more than just basic add-ons. They demand an integrated, seamless, personalised experience that fits their fast-paced digital lives.

 

The Future of Telecom VAS – Becoming a Superapp

As consumers become tired of managing multiple subscriptions simultaneously, the next logical step is to bundle them and offer one value-packed set. But while bundling is already popular in the telecoms industry, super bundling has yet to be fully taken advantage of.

Bundling refers to pairing a couple of additional services with the core service; for example, by offering an option to add Netflix to your monthly phone bill, super bundling offers a package of 10s of VAS, if not more.

 

Super Bundling is changing the way subscription services are found, managed and paid for.

Bango

 

Super bundling addresses the subscription fatigue in telecom to a certain extent. Providers like Verizon and Optus have launched their innovative “content hubs”, MyPlan and +play, and SubHub, respectively, with great success. But it won’t be long before their competitors start doing the same, and consumers’ appetite for more centralised subscription platforms grows even greater.

A way to truly differentiate in this increasingly competitive industry is to transition into a superapp – a “super bundle” integrating mobile banking, telecom services, e-commerce, social networking, messaging, food delivery, transportation services, and more, through a single interface.

This flexibility reduces the necessity for users to download numerous individual apps to perform various tasks or manage multiple subscriptions separately, streamlining the digital experience and lowering the subscription fatigue in telecom.

 

Superapps benefits are the future of telecom VAS

 

From a business perspective, superapps are more than just a collection of services; they represent ecosystems of businesses. These digital service portfolios drive new revenue streams and reinforce a company’s core offerings. In fact, the global superapp market is projected to grow significantly in the coming years. The superapps market, valued at $61.3 billion in 2022, is expected to expand at an impressive CAGR of 27.8% from 2023 to 2030.

 

The future of telecom VAS, Superapps Usage

 

The most notable example of a successful superapp is WeChat, which started as a messaging app but evolved into a multifunctional platform offering various services. Other prominent examples include Tata Neu in India and Grab and Gojek in Southeast Asia, each providing unique combinations of digital services within a single platform. Additionally, companies like Uber, PayPal, and Revolut are increasingly exploring the superapp model to expand their offerings.

 

Benefits of Superapps for Combating Subscription Fatigue

As mentioned above, superapps do not only offer numerous benefits to consumers and businesses, but they are also an effective tool in combating subscription fatigue.

Firstly, they help enhance user engagement and retention by offering multiple services, subscriptions, and mini-apps in a single app. In fact, the top 10 superapps worldwide had a 40% higher user engagement rate compared to traditional apps in the same category. In the case of superapps, users don’t need to switch between various apps to perform various tasks, which naturally increases daily active users (DAU) and engagement and retention rates.

Secondly, when an app offers a wide variety of services, users interact with it more regularly and make more in-app purchases, which, in turn, generates an increased amount of valuable first-party data. It can be used to gain a deeper insight into customer behaviour preferences and thus provide a superior customer experience than a single-service app. That can be achieved by delivering personalised content, services, offers, and messaging.

 

With 82% of consumers willing to share their personal data in exchange for a more personalized experience, activating these strategies can generate the deeper kind of engagement that drives increased loyalty and steady growth

PwC

 

Better customer experience encourages repeat usage, prompting more in-app transactions and boosting the superapp’s revenue. Additionally, with the huge amount of customer data collected, they can easily provide personalised offers and recommendations or use dynamic content to deliver targeted messages and promotions. That involves updating content in real-time based on the data collected about the user’s current and past activities. For example, if a user has been browsing international call plans, the app could dynamically offer a special discount on an international calling package as soon as they next open the app.

According to a survey conducted in January 2022, the right superapp could achieve almost 100 million day-one users, which would drive the annual spending to over 3.25 billion U.S. dollars.

 

 

Lastly, creating a robust consumer-centric ecosystem where users can access all their needs without leaving the platform enhances customer loyalty and drives churn rates down.

To read more about superapps, their origin, future outlook and the steps for the telecom providers to become one, download our latest white paper: Why Telecoms Should Become Superapps and How to Do It.

 

How Mobilise Can Help Telecom Operators Transform into Superapps

Mobilise is at the forefront of telecom innovation, empowering operators to transition beyond traditional services and evolve into powerful superapps.

Our HERO® platform offers a fully digital customer experience solution tailored for telecom operators, enabling them to meet the growing demand for seamless and engaging user journeys. The platform is designed to streamline subscription management, enhance personalisation, and provide a unified, digital-first experience.

We specialise in integrating advanced services such as eSIM management, VoIP solutions, and third-party services. These features transform a standard telecom app into a comprehensive platform that caters to a variety of needs, delivering unmatched convenience to users.

 

Conclusion

Subscription fatigue underscores the urgency for telecom operators to rethink their approach. Next-level VAS, embodied by superapps, provide a powerful solution by centralising services, reducing churn, and driving customer loyalty. By offering integrated, personalised experiences, superapps not only address customer frustration but also unlock new revenue opportunities and future-proof telecom businesses.

Mobilise’s HERO® platform empowers operators to lead this transformation with innovative, end-to-end solutions. Take the first step today—partner with Mobilise to reimagine your telecom offerings and thrive in the era of superapps, the future of telecom VAS.

You might also like

    Our website is protected by reCAPTCHA and the Google's Privacy Policy and Terms of Service apply.