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In simple words, any mobile operator cannot depend (especially nowadays) only on the voice revenue, so must have Value Added Services, as previous gents mentioned, that those services will add more cost to the MON (Mobile Operator Network), but in the same time they increase the revenue of the operator.
Advantage of VAS to customers: Subscribers get alternative means to convey or connect with other party , fall into VAS category. Plain vanila old voice with standard Ring back tone is Non -VAS service. Everything besides voice falls into VAS category. Be it , SMS, GPRS, PRBT etc. Some of these VAS means are cost effective and effort effective compared to traditional voice services.
Advantage of VAS to Operators: Operator has high capital Voice network ready. They put additional capital and they can launch new services called VAS. For example, in order to launch SMS VAS service, Operators just need to put SMSC servers and they have additional revenue of stream. Same applies to other VAS services like PRBT.
Let me knwo, if you need further details...