Telemedia Monthly

Page 1

Issue 26 • FEB 2012

Operators set to abandon network cost-based pricing in favour of services Mobile operators will abandon network cost-based pricing to focus on premium services, as they look to reduce churn and maintain revenues according to a new paper released by global telecoms, media and technology (TMT) adviser Analysys Mason. This transformation, enabled by new end-to-end approaches to network management, arrives in the face of growing competition from over-the-top (OTT) services and rapidly rising data costs. The report estimates that the volume of wireless data traffic worldwide will grow at an annual rate of 67% between 2010 and 2015. During the same period, data revenue per gigabyte is projected to fall from USD23.21 to USD4.27. The report reveals that, in order to handle this growth whilst assuring revenues, operators are increasingly looking to offer new services such as temporary network speed boost and tiered bandwidth allocation to create a premium service for high value customers. Patrick Kelly, Research Director at Analysys Mason, believes that average revenue per user (ARPU) will increasingly be related to additional services: “Operators are facing increasing pressure to deliver a high quality service despite growing data demands. The only realistic way to do that is to decouple ARPU from network costs and instead align it to the delivery of premium services. “Previously, there was a lack of availability of tools to support complex segmentation of mobile data services. As the focus shifts towards maintaining revenue for data services, more operators are adopting the increasingly sophisticated tools to manage tiered services,” said Kelly. Interviews with operators have shown that the main obstacle to the delivery of these services is their ‘silo’ approach to network delivery, which hinders a full view of the customer experience. Operators are increasingly employing end-to-end network monitoring solutions to eliminate these silos and create real-time, end-to-end monitoring. “The rise of data has created a clear and urgent need for operators to introduce new ways of dealing with network traffic such as prioritisation of higher tier subscribers. End-to-end monitoring and analytics make that possible, but operators need to educate customers about the requirement for tiered traffic to ensure continued quality of service,” commented Lars Pederson, CEO, CommProve. Operators implementing this new, unified approach to network monitoring including Vodacom, part of Vodafone - reported reduced churn, increased levels of customer care and a renewed ability to differentiate and remodel their services around premium offerings. In the report, Analysys Mason urges operators to increase adoption of network monitoring to eliminate silos and more fully understand the user experience and to take advantage of real-time data collection and analysis to enable traffic prioritisation and tiered billing models, while adopting open platforms to unify the entire network management system.

THIS MONTH... News

The latest news from the industry, along with analysis of what that news means, including: • Location, shopping and tablets driving m-commerce... 3 • ... but retailers failing to make right investment to exploit it 3 • Sports Illustrated’s swimwear issue goes mobile 5 • StrikeAd rolls out targetting m-adveritising solution 5 • HTML5 based direct carrier billing set to shake up m-payments 6 • Microsoft extends carrier m-payments through MACH 7 • Masabi bring m-ticketing to all UK rail services 8 • Momac open first office in the US and installs SVP 8 • WorldPay and BOKU join forces for global m-payments 9 • Self destructing text service goes live for wannabe spies 9

Analysis Editorial Don’t bamboozle your users Paul Skeldon finds that this year’s Mobile World Congress is focussed on mobile payments 11 PAYMENTS Pulling it all together Gabriel Hopkins from WorldPay takes a look at what the recent EC green paper on payments means for telemedia 12 OPERATORS Brands and Superbrands Big operators can’t continue as single superbrands, argues John Strand. Instead they must re-evaulate how they sell what they do 15 SHOW PREVIEW Mobile World Congress 2012 It’s that time of year again when we all live the continental mobile life for a week in Barcalona. Paul Skeldon looks at some of the key speakers and discussion topics on offer this year 16

Directory

The leading industry directory of services 20

Latest news at www.telemedia-news.com Catch our blog at www.telemedia360.blogspot.com


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.