New Retail and Wholesale Business Models
Strategies for addressing network congestion are only part of the challenges operators face; next generation revenue models are also required to replace legacy flat rate schemes. For example, an operator partnership with third party providers allow for “split billing” scenarios, in which a subscriber receives some portion of a service (for example, high QoS for the first 10 minutes of a video, or access to an application) as a “free” offering subsidized by the content provider. Wholesale scenarios include “comes with data” scenarios such as that provided by Amazon’s popular Kindle device, which provides free data connectivity for accessing books. A similar “comes with data” scheme can be built into applications, such that the application price includes any associated data charges.
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Operators that don’t understand the tradeoffs associated with various options will suffer increasing pressure on their top line |
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As increasingly sophisticated devices continue to flood the market, the unprecedented amount of data generated provides operators with unprecedented opportunity for new revenue streams. But the associated challenges are significant. Operators that don’t understand the tradeoffs associated with various options – or who are unwilling to overcome the inertia of legacy business models, will likely suffer increasing pressure on their top line as revenues continue to flatten, as well as on their bottom line as they scramble to shore up capacity. By implementing network evolution and offloading strategies along with sophisticated policies and multi-faceted revenue models, operators stand to benefit.
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