Total Telecom: Securing ARPU while managing new applications
by Matt Bancroft
Total Telecom September 25, 2007…
Mobile operators should look to managed services to safeguard data revenues.
Mobile operators are facing increasing pressure on average revenue per user (ARPU) as the markets they operate in mature. Therefore it has become widely accepted that they must look beyond the two traditional revenue streams of voice and SMS to new data services in order to boost profits. Recent research from Coleman Parkes showing that 70% of businesses will be using mobile VoIP within the next two years has further highlighted this pressure.
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So how can operators stay competitive and still maintain a sustainable ARPU from business customers?
The take-up of the smart phone, with its advanced data capabilities, is a fantastic opportunity for mobile operators. Since the introduction of the Blackberry, the smartphone market has really taken off as business users realise that they can keep in touch on the move with a simple device. In fact, recent research from Canalys has shown that 64 million smartphones were shipped worldwide in 2006, with some analysts projecting that as many as 100 million will ship in 2007.
These smart devices are to all intents and purposes pocket sized computers, with the capability to run a variety of applications once only found on a PC, from email to connecting to the corporate network. While this is all great news for operators, to really reap new revenues and benefits from these applications they must ensure that the user experience is excellent otherwise they will find their data service revenues decreasing rather than increasing.
In addition, with the market saturated for voice and SMS, operators need to deliver more applications and services with a high-quality user experience or they risk customers simply switching to another provider. Therefore, even applications that appear to be a threat, such as mobile VoIP, need attention. The bottom line is that enterprise usage of VoIP is projected to grow significantly.
However, all applications, even VoIP, provide opportunities.
The key is in ensuring that all devices and the applications on them are well managed. In business it often falls to the CIO to choose and manage the rollout of mobile devices and applications, yet many of them don't have the time or the skill set to effectively do this. This is a prime opportunity for operators to offer an important value-added service, opening the door for new revenues. Operators can offer application and device management services to business, ensuring the tools are available for everything from deploying and updating applications, to backing up critical data.
Another area in which operators can look to increase revenue is through CRM and sales force applications.
Research has shown that businesses are looking at these applications for people on the road to use in order to compile orders and have data at their finger tips. While this is useful, there are several potential issues that businesses need to consider; storing customer data on a remote device, for example, opens up both security and regulatory issues. In addition, the application will need to be managed and updated regularly otherwise businesses could end up creating more problems than they solve.
Therefore it is imperative that devices are kept up to date with remote updates and support, and that they are subject to the same stringent security checks as any other computer on the corporate network. By developing managed services to aid businesses with these issues, mobile operators can not only build new revenue streams but also encourage mobile application usage.
However, with increased application use comes an increased need for support from the operator. It is important that operators are able to provide the tools to meet the needs of enterprise customers effectively in order to avoid high support costs for either enterprise IT departments, or the operator itself. They can do this by looking at over the air (OTA) updates and automated management systems, for example, which will give them the ability to provide effective application support, without costs going through the roof.
Applications will continue to develop and generate more demand from users. It is vital that operators lead the way and are able to support these applications in order to get a good take-up and secure those all important data revenues.