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Data-dependent Operators to Implement Tiered Services to Maintain Revenue and Combat Rising Costs
LONDON, February 15, 2012/PRNewswire/ --
Analysys Mason predicts decoupling of revenue and network costs as operators
prioritise bandwidth resource
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
[http://www.analysysmason.com/Research/Content/Reports/Real-time-network-analytics-Feb2012 ]
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
- Take advantage of real-time data collection and analysis to enable traffic
prioritisation and tiered billing models
- Adopt open platforms to unify the entire network management system
The paper, sponsored by CommProve, a leading provider of network monitoring and
business solutions for mobile networks, surveyed a number of mobile network operators. The
research investigates operator strategies to tackle growing data needs and loss of revenue
to OTT services.
The full paper can be downloaded here
[http://www.analysysmason.com/Research/Content/Reports/Real-time-network-analytics-Feb2012 ]
and highlights from the white paper are also available via Slideshare here
[http://slidesha.re/zo1xK0 ].
About Analysys Mason (http://www.analysysmason.com)
Analysys Mason is a global consultancy and research company specialising in telecoms,
media and technology (TMT). Our clients in the TMT sectors operate in dynamic markets
where change is constant. We help shape their understanding of the future so they can
thrive in these demanding conditions. To do that, our consultants have developed rigorous
methodologies that deliver real-world results for clients around the world. In terms of
our research, the world's leading network operators, vendors, regulators and investors
subscribe to our research and rely on our insight to inform their decision making.
About CommProve
CommProve enables mobile network operators (MNOs) to gain real-time visibility into
their operations to control financial performance, quality of experience and network
performance using a single integrated platform. The CommProve NetLedge platform provides
real-time data acquisition and mediation while the CommProve Insight application suite
collects and analyzes network usage information and integrates it with business rules and
subscriber data to enable operators to maximize both customer satisfaction and
profitability.
Headquartered in Ireland, and privately held since it was founded in 1996, CommProve
customers include H3G, Telecom Italia, TIM Brazil and Vodacom. For additional information
please visit http://www.commprove.com.
Analysys Mason media contact
Kate Brown / Alistair Young
Press Office
Tel: +44(0)845-600-5244
Email: press@analysysmason.com
Web: http://www.analysysmason.com
CommProve media contact
Stephanie Forrest
Tel: +44(0)7917695755
Email: stephanie.forrest@commprove.com
Twitter: @commprove
Source: Analysys Mason and CommProve
Data-dependent Operators to Implement Tiered Services to Maintain Revenue and Combat Rising Costs
LONDON, February 15, 2012/PRNewswire/ --
Analysys Mason predicts decoupling of revenue and network costs as operators
prioritise bandwidth resource
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
[http://www.analysysmason.com/Research/Content/Reports/Real-time-network-analytics-Feb2012 ]
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
- Take advantage of real-time data collection and analysis to enable traffic
prioritisation and tiered billing models
- Adopt open platforms to unify the entire network management system
The paper, sponsored by CommProve, a leading provider of network monitoring and
business solutions for mobile networks, surveyed a number of mobile network operators. The
research investigates operator strategies to tackle growing data needs and loss of revenue
to OTT services.
The full paper can be downloaded here
[http://www.analysysmason.com/Research/Content/Reports/Real-time-network-analytics-Feb2012 ]
and highlights from the white paper are also available via Slideshare here
[http://slidesha.re/zo1xK0 ].
About Analysys Mason (http://www.analysysmason.com)
Analysys Mason is a global consultancy and research company specialising in telecoms,
media and technology (TMT). Our clients in the TMT sectors operate in dynamic markets
where change is constant. We help shape their understanding of the future so they can
thrive in these demanding conditions. To do that, our consultants have developed rigorous
methodologies that deliver real-world results for clients around the world. In terms of
our research, the world's leading network operators, vendors, regulators and investors
subscribe to our research and rely on our insight to inform their decision making.
About CommProve
CommProve enables mobile network operators (MNOs) to gain real-time visibility into
their operations to control financial performance, quality of experience and network
performance using a single integrated platform. The CommProve NetLedge platform provides
real-time data acquisition and mediation while the CommProve Insight application suite
collects and analyzes network usage information and integrates it with business rules and
subscriber data to enable operators to maximize both customer satisfaction and
profitability.
Headquartered in Ireland, and privately held since it was founded in 1996, CommProve
customers include H3G, Telecom Italia, TIM Brazil and Vodacom. For additional information
please visit http://www.commprove.com.
Analysys Mason media contact
Kate Brown / Alistair Young
Press Office
Tel: +44(0)845-600-5244
Email: press@analysysmason.com
Web: http://www.analysysmason.com
CommProve media contact
Stephanie Forrest
Tel: +44(0)7917695755
Email: stephanie.forrest@commprove.com
Twitter: @commprove
Source: Analysys Mason and CommProve