New revenue streams for telecom operators


20 June 2016 | Speaker: Alexander Gusev


Mobile operators’ revenues from traditional services such as voice and SMS have been significantly affected by the increasing popularity of various OTT services. According to OVUM study, the total loss of revenue of mobile and fixed-line operators from VoIP services alone for the period 2012-2020 will amount to $ 479 billion or 6.9% of the global market for voice service. Worldwide losses of mobile operators from OTT communication services amounted to $ 14 billion in 2014, according to Juniper Research.

So how is it possible for operators to earn more money?

As obvious as it may sound, the main source of operator’s income is its subscribers. Operator collects and aggregates lots of different information about each of its subscribers. In fact, it will not be an exaggeration to say that life of each subscriber has been digitized and its different aspects can be found in operator's internal systems (Billing, DPI, CRM etc): sex, age, address, date of birth, phone number, often visited sites, subscriber’s interests, consumed traffic value, used services (FB, YouTube etc), ARPU, roaming, tariff plan etc.

Operator can communicate directly with subscribers via SMS, e-mail and USSD and telemarketing but these communication channels have several issues, including:

  • rise in number of devices that do not support voice communication and SMS (e.g. modems and tablets)
  • incorrect contact information (e.g. sim-card issued to other person, initially incorrect data entered etc)
  • subscribers begin to ignore traditional communication channels

In-Browser Notifications systems provide an additional advanced subscriber communication and engagement channel for operators.

In-Browser Notifications Solution is a carrier-grade solution that gives operators and service providers an advanced communication channel with subscribers for fast delivery of targeted information, such as notifications, special offers, ads, warnings etc.

This is a small yet powerful widget that appears on every web-page visited and displays information and/or tools for multi-way communication between operator and subscribers.

Such possibilities must and should be used to get extra income. There are two possible approaches – up-selling/cross-selling own tariffs and services and monetization of 3rd party advertising.

Here are some examples:

  1. 1. Bandwidth Upsell. When subscriber demonstrates heavy data usage (e.g. lots of downloading, online video in HD etc), operator offers "Turbo Button" service that gives subscriber temporary increase in speed.
  2. 2. Traffic Upsell. When quota is exhausted, operator offers subscriber to buy services, such as additional quota, new tariff etc.
  3. 3. IPTV. When quota is exhausted, operator offers subscriber to buy services, such as additional quota, new tariff etc.
  4. 4. Services based on subscriber's account. Operator can send notifications to subscribers regarding end of billion period, autopayment etc.
  5. 5. Change of tariffs or packages within tariff . When subscriber regularly buys additional Internet packages, SMS, Voice or uses "Turbo Button" more than once per week, operator offers more expensive tariff with expanded services package.
  6. 6. Real-time bidding. Sale of anonymous profiles in the near-online mode.
  7. 7. Churn control. When subscriber visits the competitor’s website, operator advertises special tariff or service.
  8. 8. Additional services on the basis of long-term subscriber behavior analysis:
    • When subscriber uses mobile Internet in roaming, operator offers special packages for roaming etc;
    • Service-based packages: FB, VK, YouTube, Skype, Torrents etc;
    • Additional services: parental control, voice mail, antivirus etc;
    • Tethering.

As practice shows, for maximum efficiency personalized approach needs to be applied in each case. As a real life example – increase of 26% in revenue from data, with personalized messages CTR (click-through rate) reaching over 8% (compared to average 0.5% for standard online ads).


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