Based on the fusion of telecom value-added service and the Internet, we study the telecom value-added service chain with one telecom operator and one service provider. Advertisement which is provided by Advertisers is implanted into value-added products as profit elements, and t he service provider's income makes up of two parts: information fees share and advertising revenue. First, the mode l is established by using game theory, then, the op timal strategies are obtained through strict theoretical proof. Fina lly, we get the optimal decision when telecom opera tor and service provider have different profit share, and d iscuss the change of product price, profits when Ad vertisement is implanted into value-added products as profit eleme nts. The paper proposes some suggestion to improve the telecom value-added business revenue model, and provides a good idea for operations and management of the ente rprise