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The Other Face of the Data Explosion: New Ways to Combat Rising Smartphone Subsidies and Improve Telco Profitability

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SINGAPORE /PRNewswire/ — The smartphone sector has become something of a bonanza of late, but it has also turned into a source of major headaches for CEOs in the telecommunications industry.
Consumers are increasingly eager to upgrade to smartphones and start accessing the Internet, using apps and sharing content. Indeed, markets such as Indonesia already have 19 percent of mobile customers on smartphones, while Singapore has 72 percent, according to Nielsen.
But smartphones are expensive – the new iPhone 5 retails from US$650 if bought standalone, so a key driver for smartphone growth is handset subsidies. Subsidies run at several hundred dollars per device allowing telcos to offer smartphones to consumers for free or at a heavily reduced price. The hope is that resulting data revenues will make the economics work, but it has risen now to become one of the largest operational cost items at 18 percent of revenue for many operators.
Delta Partners, the leading advisory and investment firm specialising in telecommunications, media and technology (TMT), today released its latest article, entitled The Smartphone Subsidy Conundrum, outlining how carriers can bring a number of new and trialed measures to rein in such subsidies.
“This is a hot topic for telecoms executives worried about the costs associated with rising smartphone penetration,” says Delta Partners Principal Mar Pages. “Telcos that address this issue now can gain several points of EBITDA margin without impacting competitiveness.”
Some of the potential initiatives this article explores through examples from leading operators such as Telstra, AT&T and Bharti Airtel include:
Prolonging handset lifecycles. A Bring-Your-Own approach adopted by Telstra that offers monthly discounts to consumers who switch provider and keep their previous device.
Lengthening the customer renewal process. AT&T has lifted fees charged to customers who wish to upgrade their handsets before the end of their contract.
Discount optimisation. Offering “reverse subsidies” where customers receive a monthly fee reduction instead of a free handset, implemented by Bharti Airtel and China Mobile.
Managing data economics. Using deep analytics to optimise the relationship between smartphone and data pricing.
“Which option is best depends on an operator’s market position, environment and cost pressures,” notes Delta Partners Senior Associate Anna Arlorio. “This article evaluates how to rethink smartphone subsidies and drive profitability.”
To download the full article, please visit: http://www.deltapartnersgroup.com/our_insights/articles
Karen Cordeiro, Marketing Coordinator, Delta Partners, Tel: +971-56-681-5864, Email: kc@deltapartnersgroup.com
Source: Delta Partners

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October 24, 2012 at 4:02 pm

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Roamware’s Predictive Intelligence Patent to Revolutionize Customer Experience Management

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CUPERTINO, Calif. /PRNewswire/ — Roamware, Inc., the Global Leader in Mobile Operator service solutions today announced that it has been awarded a patent on Predictive Intelligence(TM) (PI), a technology that will help operators vastly improve their customer experience management capabilities and give local and roaming subscribers a much better service usage experience. Predictive Intelligence helps operators simulate subscriber experience in home and visited networks around the world so that voice and data services can be tested thoroughly before a service is launched into the market and can be monitored with real-time analytics once the service is live.
(Logo: http://photos.prnewswire.com/prnh/20120809/554204 )
“Customer Experience Management is the number one challenge that mobile operators around the world face today,” said Roamware CTO, Dr. John Jiang. “Quality of Experience and Quality of Service are critical elements of an operator’s service offering that need to stay at high levels both in home and visited networks. Operators need to be able to ensure customer experience pre facto rather than reacting post facto to subscriber complaints. With Predictive Intelligence, we help operators simulate subscriber experience through virtual profiles. Combined with our SIM-based robots, Predictive Intelligence can test end-to-end service and network parameters thoroughly. With 100s of SIM-based robots located around the world, our unique solution can test any VLR in the world,” continued Dr. Jiang.
Roamware’s Predictive Intelligence platform is an integral part of the company’s R-Quality and R-Experience solutions that help operators address the challenge of Customer Experience Management through an integrated approach of testing, monitoring and interactive subscriber communication that transcends geographical boundaries and operator networks. Roamware offers a combination of active testing, passive testing, automated testing, real-time monitoring and analytics on the Predictive Intelligence platform. These solutions have seen huge uptake in mobile networks around the world.
About Roamware, Inc
Roamware, Inc. is the global leader in mobile operator service solutions with a customer base of over 530 mobile operators across 160 countries. Roamware is a market leader in mobile roaming solutions. Roamware mobile financial solutions have been successfully deployed by major banks and global operators. The company’s headquarters are located in Cupertino, California with operations worldwide. Learn more about Roamware’s products and solutions at http://www.roamware.com.
Roamware Contacts:
Srinivas B Vijayaraghavan, Director Marketing
Tel: +919739970225 / srinivas.v@roamware.com
Source: Roamware Inc

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October 12, 2012 at 11:22 am

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