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only for proving-in business cases for deciding whether to deploy, but it is also one of the most critical objectives for all successful LTE implementations moving forward.

In order to understand how to manufacture opportunities for early monetization it is becoming evident that operators need to focus on one critical aspect of “how” their LTE network is deployed.  That aspect is the ability to create and gain finely tuned control of revenue generation opportunities by establishing a robust Policy Orchestration capability.  Policy orchestration capability, when effectively implemented, enables revenue generation and/or margin maximization on a number of levels.  Policy management capability provides LTE network operators the ability to map subscriber profile information in real-time to usage , service plan, presence and personal attributes to unleash a virtually unlimited set of mass customizable services that meet the unique needs and interests of subscribers.  Moreover, with policy orchestration, operators can take advantage of cross-sell and up-sell opportunities as they occur in real-time.  Similarly businesses that wish to tap into the operators’ end-user subscriber base will be able to leverage the rich profile information the operators can control with policy orchestration and help drive and create new services and offerings that operators by themselves would be unable to deliver.  Clearly this last type of new revenue opportunity requires that operators be able to accurately track usage and revenue share across partners.  This includes new partners that have not previously interfaced with

telecommunications provider networks for the purpose of billing or collecting revenues.  This is another area where implementing policy orchestration can be an integral part to solving a problem.

Reducing revenue leakage, while not creating new revenues in a strict sense, is another way to gain revenue and profit that were previously unrealized for an operator.  The policy management mechanisms that drive the aforementioned capability to cross-sell services on LTE networks as a function of a subscriber’s usage and service profile can also address leakage situations.  They can be used to push those users who are exceeding their usage allotment to service self-activation that extends their usage allotment and collects payment for that increase.  Subscribers are therefore notified in real-time of their usage status and given a much more customer-friendly experience than simply blocking usage after the threshold is exceeded. 

Highly effective policy orchestration capability also provides LTE network operators the ability to “fine-tune” their services and offer value pricing.  Rather than needing to set one price for all like services, to all subscribers, policy orchestration affords operators the option to selectively price for the following:

Second, those unwilling to pay for premium access can be pushed to off-peak periods and away from peak periods where premium charges can be assessed.  This more profitable traffic shaping helps ensure additional network build is done in a manner that maximizes cost-effectively and increases use of previously dormant and unproductive off-peak network resources.

As we look back at the past year’s progress and forward towards what clearly will be a year of significant activity for LTE, we can affirm that LTE networks can provide opportunity for substantial gains in both network operations efficiencies and new revenue generation.  However, the difference between success and struggle very much depends on the ability to deliver early monetization of LTE network investment so as to accelerate pace of return.  Realizing “early” new revenue is a necessary precursor to realizing LTE operational efficiency.   What is now also becoming increasingly clear is that implementing effective policy orchestration is key to delivering early monetization and a critical linchpin to LTE deployment success.