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New Mobile Services Can Increase Service Provider ARPU By Up To 15 Percent

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Note -- this news article is more than a year old.

By actively prioritizing voice and data traffic and managing advanced services such as RCS, operators can optimize network resources and transmission based on traffic type. That's one key finding of the new two part white paper commissioned by Mavenir Systems. The paper studied both sides of the mobile broadband (MBB) equation costs and revenues.

The first part of the study shows that transitioning to IMS-based voice over IP on LTE, Wi-Fi and HSPA/HSPA+ (VoLTE, VoWi-Fi and VoHSPA) can reduce per-subscriber costs by up to 63 percent, projected to be $1.80 per subscriber per month in a typical North American scenario due to the benefits of LTE spectral efficiency and Wi-Fi offload as a larger percentage of subscribers rely on MBB access.

The second part of the study shows that the same tools enable operators to move to new subscription plans in which tiering options and add-on services account for a growing portion of the ARPU, while basic voice and data plans are merged to create the core subscription offering. This enables operators to move to healthier ARPUs from subscribers and new revenues from value-added service to OTTs, especially those targeted at premium subscribers.  

"Both increased cost efficiencies and new revenues are achieved using the same technology tools and approach, treating data traffic in a more granular way based on the realization that all data packets may not be created equal in an IP network," said Monica Paolini, Senza Fili Consulting, the company that wrote the report.

Key Conclusions:

  • Mobile operators can raise their ARPU by 15% in 5 years by:
    • Offering subscribers more choice and flexibility
    • Establishing mutually beneficial partnerships with OTTs, content and application providers, and advertisers.
    • Requires a new approach in presenting and charging for services
  • In our revenue-generating framework, optional services become the main ARPU contributors, accounting for 65% of service revenues in Year 5.
  • Partner revenues account for 17% of ARPU by Year 5 (operators and ecosystem players).
  • Adoption of RCS and add-on services give operators more control over traffic.

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Tags: mavenir systems