Mobile Network Operator Revenue Improvement Subscription available on Market Research International

CANTERBURY, U.K. - June 11, 2013 - PRLog -- According to a new market intelligence service, mobile network operators must find new revenue sources to counter the threat from over the top (OTT) providers. The intelligence finds that mobile network operators have an urgent need to keep a presence in the content value chain. This means mobile network operators need to find a strategy to monetise the app explosion. The traditional revenues of network operators are levelling off or even declining, due to greater competition and the saturation of main mobile markets globally.

The number of subscribers is expected to grow, although the average revenue per users (ARPU) is forecast to decrease. This is because the largest growth market will be budget phones in emerging markets, which have a limited ARPU potential. On top of this is the additional competition from Skype and WhatsApp, which allow users to text and call on their mobile phones without using the operator network. Additionally there are higher costs for network maintenance.

Mobile network operators have started to negotiate with the app stores in the hope of creating their own within Apple App Store or Google Play. Whilst it is a strategy, it may be a little late in the day to have a presence in these areas, when users are already so affiliated with existing apps. The one strong area that mobile network operators must leverage is the billing relationship it has with its customers.

Furthermore, there are additional add-on costs that it could 'creep' into the service charges, such as roaming connection fees, premium text services and other value-added services. On top of this, the user is still somewhat reticent to enter credit card details into the handset, meaning the customer could pay for items through the billing process with the mobile network operator. Mobile network operators also have large call centre operations, which could turn into outbound marketing operations.

From an operational perspective, the data highlights that mobile network operators can employ a variety of techniques, including prioritisation, traffic management and video optimisation - which improve the bandwidth per app and per customer, thereby reducing customer churn. The report concluded that this additional capability could enable operators to charge higher prices for their services, but it will be a cost users are willing to incur for a faster, more reliable connection to their apps.

To understand more about how mobile network operators can improve their revenues and profitability, find out about the online subscription to Mobile Network Operator Revenue Improvement and Profitability Enhancement.

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