CSPs tap into VAS, improve experience
On technology trends
Declining voice ARPUS and increasing competition from OTT players have prompted the mobile service providers to enhance customer understanding and focus on personalization CSPs are tapping into VAS solutions to obtain better insights into their customer base and improve the customer experience.
However, it is only with the requisite front office and back office support services that CSPs can utilize full potential of these solutions.
On changing dynamics
Outcome-based models (over hypothetical business models) are becoming more relevant for managed services aimed at reducing opex, increasing revenue and bringing better time to market. CSPs are looking at value-based augmentation from their solution and services vendors to translate technical improvement into tangible and financial benefits for the operator.
On growth verticals
With increased adoption of mobility solutions, the mobile financial and data solutions are becoming more relevant for CSPs investments into the future growth areas. However, due to the complex and sophisticated architecture covering multiple business segments, it is important that the service delivery is backed by performance .guarantees by a reliable managed services partner.
The new segments successfully tapped by Mahindra Comviva are core consumer value solutions and internet and broadband solutions.
On pricing trends
For solutions in the revenue share segment, the vendors are adopting ARPU band-based pricing instead of ARPU – based pricing. This helps in understanding the solution’s impact on different customer segments and helps pinpoint their usage experience. The new trend urges both operators and vendors to focus on offering personalized services and caters to the specific needs of a customer for the ultimate goal of optimized revenues.
Tips for buyers
For new products with seemingly high revenue generating potential. ICT buyers could look for:
- End to end solutions and services, outsourced in a revenue share agreement. If the CSPs are able to control cost they can expect a continuous return for the lifetime of the solution.
- Negotiate a usage-based license with the ICT provider.
On impact of SMAC
CSPs are increasingly becoming wary of their infrastructure cost They are now looking for complete transformation and as a result moving their services to a cloud model from where they can render the same service to multiple operator companies at a fraction of the original cost.
This interview was originally published in Voice & Data