Successful mobile network operators are increasingly facing competitive threats and are required to react very quickly to changes in the marketplace. Mobile operators must seize and capitalize opportunities as they arise in order to maintain and drive ARPU and remain competitive. With voice and SMS revenues flat, the opportunity of mobile data services is being viewed as the main strategic avenue for operators to drive future growth.

Mobile data currently represents the fastest growing service segment among mobile operators, with some experiencing as much as 300% yearly growth. Much of this comes from the introduction of mobile broadband spurred on by new smartphones such as RIM’s Blackberry and Apple’s iPhone. In fact, it is estimated that by 2013 mobile broadband will account for 32% of total mobile subscribers, 58% of total mobile data revenue and 18% of total overall mobile revenue.

In an effort to attract subscribers and build adoption rates, simple flat-rate, all-you-can-eat data plans have been the main form of service plan offering. However, this has not allowed operators to penetrate the broadest subscriber segment and capture additional revenue for different levels or ‘tiers’ of service. For instance, a $50 per month ‘all you can eat’ data plan eliminates a broad percentage of subscribers who are unwilling to pay that much for a service they’re not sure they will use.

In order to boost adoption rates for new users, while delivering expanded service to the serious data user, operators are increasingly considering and introducing ‘tiered’ pricing for their data plans. Low volume users can get in at a low monthly rate with limited usage- perhaps for off-peak hours or even through advertising subsidized subscriptions. While the high-volume user should be provided with the level of service they desire, but at a price that is commensurate with this degree of service. For example, a premier $150/month plan that guarantees ultra fast speeds and higher Quality of Service (QoS) for the busy business executive that uses mobile broadband, mobile TV and other data intensive services on a regular basis, might better suit this type of user.

As competition continues to increase, operators within the same market are attempting to gain advantage through promotional innovation with traditional voice and SMS (text) services in order to attract new subscribers. This has resulted in decreased margins and increased pressure on network infrastructure in order to keep up with growing demand resulting in added costs without commensurate increase in revenues. Going forward, operators must have the ability to rapidly create new tiers of services and structure real-time promotions that reveal new customer segments without cannibalizing existing service tiers. .
Increased data usage from VoIP, peer-to-peer services and smartphone devices create both challenges and opportunities for Mobile Operators worldwide. Redknee’s data solutions are actively helping operators maximize mobile broadband revenue by allowing operators to deliver clear and easily defined rating and pricing plans that help promote continued data growth, while helping operators increase revenue by enabling them to monetize high bandwidth applications.

Click here to learn more about Redknee’s Next Generation Rating and Charging Platform.