Pipeline Publishing, Volume 5, Issue 12
This Month's Issue:
Diving into Service Delivery
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Blended Applications:
Driving Innovation and Revenue

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who have commercially launched NGN services, will have a great opportunity to partner with their local and regional Internet/Web 2.0 powerhouses in building converged Web-NGN services from blended applications.

Monetizing Blended Applications

No matter which approach CSPs take, they must determine how to monetize their blended applications. Blended applications allow CSPs to expand average revenue per user (ARPU). For example, the converged services may warrant an additional per use or per application fee, or even a flat rate or premium services model. Ultimately, blended applications could even provide opportunities for generating revenue from users that are not subscribers. For example, CSPs may charge someone accessing the blended capabilities from their Web portal or via a car dashboard, who may not be a mobile phone subscriber.

Blended applications also offer CSPs opportunities to deploy business models that go beyond charging end users. By exposing their networks to third parties, CSPs can monetize the relationship with business partners – whether a developer, who pays for access to the telecom capabilities in the network, or another service provider or a mobile virtual network operator (MVNO) that does not have the network capabilities the CSP does and pays a “toll fee” to offer those services to its customers. By charging for network usage, the CSP drives business-to-business (B2B) revenue. Over time, when CSPs gather hundreds, if not thousands of partners, they could generate higher margins than they do charging end users.

As these business models expand and change, the CSPs’ operations support systems/business support systems (OSS/BSS) must evolve as well. Traditional OSS/BSS are implemented to support the provisioning and

Ultimately, blended applications could even provide opportunities for generating revenue from users that are not subscribers.


billing of end-user subscribers. But with the new business models enabled by service exposure platforms with third party developers, it becomes critical for CSPs to evolve their OSS/BSS to accommodate the dynamic provisioning and billing of third party partners as well. Further, since the CSPs will be providing network capabilities to their third party partners, it becomes very important for the partner charging model to focus around network capability usage and access, rather than a flat-fee charging model. The charging models will revolve more around real-time charging of third party partners, as well as end-users, rather than a prepaid or post-paid billing model. Also, the concept of network inventory will need to evolve to one focused on “capability” inventory, such that a CSP’s ecosystems of hundreds or thousands of third party partners are able to pick and choose from a diverse “menu” of network capabilities exposed by the CSP, and dynamically select those network capabilities which provide the biggest business and technical value to them.

Blended applications offer CSPs many opportunities to propel innovation through services and business models, helping them to meet the challenges of today’s dynamic, competitive market, while avoiding becoming a “dumb pipe.”  CSPs that rise to the challenge will succeed in competing with Internet service providers and driving long-term revenue growth.

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