Can a "hook" monetize network intelligence?
Mobile Internet users have different priorities and expectations for their networks. Teenage users may want social networking, texting and an instant connection. For business users, the priorities are email and a high-quality, reliable network.
Yet, as operators attempt to meet the needs of their customers, they are struggling to further their own profitability. The price elasticity for mobile services is extremely low--one operator can’t charge significantly more for the same service than another. So, network optimization and cost reduction are a critical component of an operator’s strategy. But that’s not enough.
Operators must look for new revenue streams to provide sustained profitability. How can service providers balance the needs of users while also monetizing their network? The key is developing a "hook," a differentiator that the operator can do better than its competitors.
Be different
If operators can roll out unique, appealing services, they can create loyal customers. Operators can use intelligence in their network and potentially partner with other players to monetize user sessions while also enhancing the user experience. With third party enablers, operators can provide their customers with extra capabilities such as a location-enabled reminder service, for example. They can also partner strategically with over-the-top (OTT) providers to provide superior on-demand content services over a high-quality connection.
Gaining visibility to user sessions through network intelligence enables operators to give their users a more optimized experience. While tools such as policy-based traffic management and hierarchical quality of service (QoS) help manage high bandwidth data usage, they can only go so far. In addition, operators can provide differentiated services to their users and drive network efficiencies. For example, they can look to intelligently offload traffic closer to the edge of the network or host user sessions within their own network.
Be adaptable
By providing compelling new content and services, operators can target new customers and retain existing customers. Take the business user, for example. Business users are typically high-volume users, and they need their connections to be fast and reliable. Their important tools could be email, high-speed Internet access or enterprise VPN services. By providing well-built and well-supported tools, the operator can monetize these users who may pay more for a higher-quality experience.
On the other hand, groups such as teenagers are happy to just have a connection for social interaction. These users favor cheaper plans with fewer bells and whistles. They are more likely to jump from carrier to carrier because plan pricing plays a stronger role in their choices. If an operator can roll out a new social networking service, or partner with a social networking provider and package that as part of their plan they have a “hook” to keep these users from jumping to another operator.
Operators must use network intelligence proactively. If they do so, they can provide users with a high-quality experience that meets their needs while establishing additional revenue streams and driving sustained profitability.
