Around the World

New York Times…
A Ballooning Megabyte Budget
Limited data plans are pushing customers to carefully budget their megabytes and more closely track their mobile usage. Confusion abounds, however, as many consumers aren’t sure how to quantify megabytes, and upgrades to faster devices and networks speeds are encouraging people to use more data-intensive applications but are leaving them to deal with unexpected charges .

To avoid data plan confusion and bill shock, mobile operators are offering tiered data plans and promoting transparent billing by giving customers options for monitoring their data. Some operators, for instance, are sending text messages to update consumers on their allotted and remaining data usage.

According to the article, many customers aren’t aware that data monitoring tools exist or have not used them to budget their data use. Therefore, operators need to improve their customer interactions and demonstrate the value of these resources to help customers take the right steps towards budgeting their megabytes.

Total Telecom…
Leakage Could Cost Mobile Operators $296bn in 2016
According to Juniper Research, if mobile operators fail to update their revenue assurance systems, their revenue losses from leakage could balloon to $296 billion in 2016, up from $58.4 billion. To minimize the risk of fraud, the firm recommends installing a real-time system to monitor and react to criminal activity, in addition to processing and validating all billable transactions.

Supporting this, research from KPMG shows that 50 percent of operators in Africa and the Middle East lose more than one percent of revenue through leakage. Losses can often be linked to improper billing operations, placing additional impetus for operators to ensure their billing systems are properly integrated into the operations support system (OSS) and business processes. As the head of KPMG says, the hope is that these figures act as a “wake up call” for the industry and encourage operators to invest in revenue assurance and fraud management systems to prevent increasing revenue losses.

Light Reading…
Ready or Not, Here Comes LTE-Advanced
Even though Long Term Evolution-Advanced (LTE-A) networks won’t be a mainstream technology until 2015, some operators are making their commercial debut with the technology and claiming to be “LTE-A ready”. This is spurring a debate over what is and isn’t 4G—and even 5G.

As marketplace confusion with network labels grows, savvy customers are increasingly asking, is a network truly LTE-A only when it uses multiple-input, multiple-output (MIMO) orders of 4×4 or higher? At 8×8, does it become worthy of a 5G marketing moniker? The answers to these questions could dictate how operators are able to differentiate their services and respond to customer needs.

According to a Heavy Reading report, despite the debate surrounding LTE-A, the emerging network is worth paying attention to because its ultimate impact will be widespread. Do you agree with the report’s prediction that LTE-A will dominate the global market? And what do you think is the value of knowing an operator is “LTE-A ready”?

Around the World

RCR Wireless News…
Latin America Counts 32 HSPA+, 5 LTE Networks
According to a 4G Americas report, Latin America is increasingly deploying HSPA technology and rolling out LTE. Currently, the region has 72 commercial deployments of HSPA technology in 31 countries, with five commercial LTE networks and 300,000 LTE connections expected by the end of 2012.

Along the same lines, the Global Mobile Suppliers Association (GSA) recently published a report showing that 300 operators worldwide have committed to commercial LTE network deployments or are engaged in trials, technology testing or studies. This is a significant increase—50 percent, in fact—over the previous year.

The LTE evolution is clearly catching on in Latin America, just in time for the region’s networks to be ready for the data boom expected during the World Cup in Brazil in 2014.

TelecomsEurope…
CEE Operators on the Ball in OTT and Connected TV
Over the past year, there has been an explosion of activity in the Central and Eastern European (CEE) online video sector, with operators jumping head first into new market opportunities by offering a variety of new services.

Informa Telecoms & Media forecasts that online video Internet traffic in the region will account for 27 percent of total Internet traffic by 2015. Additionally, the number of connected devices is set to dramatically increase, and the growth of such devices will continue to fuel over-the-top (OTT) service launches. However, operators are increasingly adapting when it comes to OTT services by investing in the development of full multi-screen services to attract subscribers and, in some cases, by teaming up with OTT providers.

The boom in OTT offerings provides an opportunity for operators to embrace innovation and introduce new value-added services. Do you think operators are able to effectively collaborate with OTT players to create mutually beneficial offerings that will appeal to customers?

CommsMEA…
A Busy Agenda
In 2011, the telecom industry came to terms with two major global shocks—the global economic downturn and the disruption caused by mass digitisation. The downturn accelerated the commoditisation of traditional telecom services, pushing operators to cut costs and increase efficiency. The digital boom encouraged operators to boost network capacity and connectivity, and introduce new services that take advantage of mobile payment platforms and cloud computing.

Due to these global changes, the telecom ecosystem is becoming much more competitive as new players from adjacent industries and technological innovation challenge operators. This year, operators will spend more on infrastructure as 4G/ LTE goes mainstream, and make strategic choices by leveraging existing capabilities and building new ones.

With the unprecedented choice of services and devices, customers will likely emerge as the winners of the drastically changing telecom landscape—do you agree with this prediction?

Around the World

Microsperience…
First Touch, Last Touch, Every Touch
Analyst Teresa Cottam explains why every interaction that takes place between a communications service provider (CSP) and a customer is important. The CSP often perceives the first touch, or first customer engagement to be a sales transaction where it signs up a customer to receive a service. However, customers believe that their relationship with a CSP doesn’t just begin with a simple sale—it takes a longer period of time to cultivate.

Teresa uses a personal experience with an old broadband operator to explain how CSPs should build better relationships with customers. After mishandling her service transfer process, the operator made her wait 30 minutes on the phone, and a support assistant accused her of signing up for the wrong package and dismissed her concerns.

Teresa says this example emphasises issues that currently exist in the market, and proves that CSPs need the ability to analyse data in real time to get a better understanding of and retain their customers. CSPs need to focus on not just the first touch but any and every touch in order to build loyalty. She also notes that in today’s competitive market, even forgetting that ex-customers could be future customers is a missed revenue opportunity and could hinder CSPs’ success.

telecomasia.net…
APAC Telcos Concentrate on Quality
Joseph Waring gives an overview of a recent Telecom Asia-Ovum survey of telecom executives in 19 countries across Asia Pacific. The results revealed quality of service (QoS) to be the key distinguishing feature for operators in the region.

Interestingly, the survey also found that fewer respondents (38% compared to 54% two years ago) viewed unlimited data rates as the most effective way to charge for mobile broadband services. But Ovum analysts believe that the percentage of people who agree with this method is still too high, and urges operators to steer away from flat rates, which can over-burden networks and negatively impact QoS.

Additionally, survey respondents indicated that they believe video will be the key driver of continued mobile broadband traffic growth in Asia Pacific. Like Comptel, Ovum believes that operators must look to balancing the management of resources like bandwidth, while controlling customers’ data services, in order to maximise the customer experience and monetise their offerings.

CommsMEA…
Right Path for Roaming?
Industry experts wonder if recent Gulf Cooperation Council (GCC) regulations could potentially cause more harm than good. These called for telecom operators to slash mobile phone roaming charges to consumers by at least 50 percent beginning 1 February in a bid to bring costs in line with those in Europe. Roaming revenues account for a significant proportion of overall profits for many CSPs, and a sudden forced reduction in tariffs may, unfortunately, lead to price increases, less investment in other areas and other unintended consequences.

But, there is evidence that Gulf operators are already moving in the right direction towards decreasing roaming tariffs without the regulations. Peter Lyons, director of spectrum policy, Africa & Middle East for the GSM Association (GSMA), says that operators responding to the competition are driving roaming costs down and that they are making an effort to increase the transparency of roaming rates. On the other hand, some point out that regulation is needed to protect against distortions in the market that can be created by dominant players. What do you think is the right path for the Gulf in terms of roaming?

Around the World

Total Telecom…
Service Providers Must Think Creatively to Get Most Out of M2M
The automotive industry is one of the key drivers of M2M communications. This article explains that operators need to include additional services on top of M2M offerings in order for customers to get the most out of the technology.

Telefónica and Masternaut, for example, are using M2M communications to monitor driver behavior, such as braking and acceleration habits, for enterprises with large fleets of vehicles. On top of their service, they are offering an element that allows companies to rank their drivers and award a prize for the highest ranked depot within an organisation. By using the natural human instinct for competition, Telefónica and Masternaut are able to encourage safe driving.

Telefónica is not the only mobile operator looking closely at this space—many are interested in building an enablement framework that will allow them to reap the benefits of M2M technology.  Do you see M2M being a major telecom trend in 2012?

ChannelNewsAsia…
Telcos May Spend More to Boost Network Capacity
This week, the Infocomm Development Authority (IDA) of Singapore introduced measures to boost the quality of 3G mobile services for subscribers. As of April 1, operators must ensure more than 99 percent coverage in outdoor areas and more than 85 percent coverage within buildings, with a less than one percent rate of dropped calls.

Due to these measures, Singapore telecom operators are focusing on improving their control of surging mobile data volumes, and are predicted to invest between $1.3 billion and $1.4 billion this year to boost their network capacity. This increase in capacity will be essential as the demand for faster data networks and LTE grows. The key for operators will be to guarantee a high quality of service in the wake of new regulations while also driving profits and preparing for the next phase of mobile broadband.

NPR…
How to Avoid ‘Bill Shock’ From Smartphone Use
For many Americans, using a cell phone while traveling abroad can result in ‘bill shock’ when they receive a stunningly large phone bill resulting from unanticipated roaming charges. To address this problem, the FCC will implement standards next spring requiring wireless carriers to provide timely and effective notice to consumers about expected roaming charges.

The new FCC regulations will present opportunities for CSPs to differentiate themselves on the customer experience front, by taking a closer look at improving billing services and personalised alert services. What do you think these new regulations will mean for the industry?

Around the World

Informa Telecoms and Media Blog…
12 Top OSS/BSS Trends for 2012
Analyst Peter Dykes highlights an exciting outlook for the OSS/BSS sector in 2012. He predicts that the growing requirement for more complex rating and billing functionality will open up opportunities for vendors, and says that improvements in this area are necessary for operators embracing LTE. For 2012, he also believes that in both mature and emerging markets, there will be a greater focus on areas such as customer experience, business intelligence and innovation in handling network congestion.

The predictions Comptel believe are particularly interesting include the rise in demand for OSS tailored to M2M services, which Steve Hateley recently wrote about, and the growth of policy-based online charging (OLC) as operators seek to offer more innovative services.  What 2012 prediction do you think is most surprising?

Telecomasia.net…
Five New Challenges for APAC Telecoms in 2012
Ovum analyst David Kennedy believes that tightening margins and streamlining business processes will be the main theme for the Asia-Pacific telecoms industry, as overall growth in the mobile market slows and competition for customers increases. David believes these five trends will drive the market forward in the region in 2012:

• The push for cost optimisation and efficiency – this will grow in importance due to increasing competition and margin pressures.
• The importance of customer service – operators will work to stay ahead of the competition with promotions, marketing, better network convergence/reliability, etc.
• The future of smart devices and mobile app ecosystems – successful devices will need to integrate applications, content and services into the platform.
• Network data management importance– as data surges, operators are being forced to alleviate network congestion and will roll out a combination of solutions including more LTE networks and Wi-Fi offloading.
• Bundling for customer retention – more bundling is expected to emerge for mobile-only and second-tier operators.

Do you agree that these trends will define the APAC telecoms industry in 2012 and ensure continued profitability and improved efficiency?

Telecoms.com…
Mobile Network Predictions for 2012
In 2012, the mobile market will see two key trends emerge: technologies critical to maintaining a high user experience and initiatives providing additional profit growth opportunities while reducing costs.  In an effort to improve the customer experience and increase revenues, operators are looking to invest in network sharing and traffic optimisation.

Another major issue in 2012 will be coverage for LTE networks, most notably in markets where operators only have access to high frequency spectrum. LTE femtocells are predicted to boom in popularity, which will benefit residential, business and public hotspots.  However, deployment of LTE small cells for capacity improvements is not expected to be widespread in 2012.

Additionally, investing in traffic optimisation for video is a hot topic, with content providers, CDNs and other vendors, and mobile operators debating various ways to deliver mobile content efficiently. We’re looking forward to seeing mobile innovations in action at the upcoming London Olympics, where operators are expected to showcase the successes of their technologies.

Around the World

The Hindu Business Line…
Take Broadband to the Masses
In order for India to sustain the economic growth it has experienced over the last few years, broadband needs to be accessible throughout the country. Spreading broadband beyond urban areas ensures the efficient delivery of remote education, healthcare and government services.

Factors that previously prevented widespread adoption include affordability and lack of availability. However, while the latter is less of a hurdle today as service providers continue to embrace wireless, the former continues to be a challenge. Sustainable growth requires subscriber plans that are reasonable yet profitable. This is where OSS/BSS providers can help, by giving communications service providers (CSPs) the opportunity to make flexible plans while simultaneously reducing their costs.

FierceWireless…
Increased Network Congestion Requires Fresh Thinking from Operators
As the growing popularity of smartphones brings a boom in data traffic, operators are developing new ways to acknowledge network congestion problems and deliver a personalized customer experience. In fact, recent research from Current Analysis claims that social media and end-user forums have become a key part of identifying network issues and prompting operators to take action.

Additionally, many operators are training customer support staff to assess network failures and award credits to individual subscribers when needed. This is a step forward towards improving the customer experience, but as IDC analyst Andy Hicks recently said, the key to ensuring predictive and proactive customer service is implementing service and network automation, so that subscribers’ needs are addressed before end users call customer service.

CIOL…
LTE Won’t Stop Carrier Wi-Fi Momentum
Despite the growth in LTE networks, many CSPs are embracing Wi-Fi due to its massive footprint, low-cost and large presence on smartphones. In addition to deploying Wi-Fi access points in hotspot locations, they are integrating the technology into their core networks and extending OSS/BSS and customer management capabilities to Wi-Fi.

While the benefits of LTE are clear and the technology is continuing to gain momentum, ABI Research analyst Aditya Kaul observes that the true motivation for adopting LTE is for customer acquisition, competitive differentiation or being first to market. But the adoption and promotion of Wi-Fi still makes sense for many operators when it comes to retention, which could even be turned into a competitive advantage. Do you think Wi-Fi has a long term play, as new LTE services, products and packages continue to roll out?

Around the World

Connected Planet…
The First of the Top Trends for 2012, Including: Micro-Transactions for Everyone
With the New Year right around the corner, Alex Leslie provides an overview of what private equity firm M/C Partners sees as the top 10 communications trends for 2012. Dealing with capacity issues is expected to be the biggest trend, according to the company; communications service providers (CSPs)will likely accelerate the build out of fiber to the tower in order to keep up with bandwidth and quality of service demands.

What Alex notes as most interesting from an OSS/BSS point of view is the expansion of the micro-transaction business models into massively multiplayer online role-playing games (MMORPGs), console games, video, communications services and social networks. With the majority of this money being paid as subscriptions, Alex says this opens an opportunity for pricing and billing sophistication.

Do you agree with M/C Partners’ list of the top 2012 communications trends? Is there anything else you foresee having a major impact on the industry in the New Year?

Microsperience….
Making the Impossible Possible (A Fishy Tale)
Analyst Teresa Cottam begins her blog post with an anecdote about a U.K. supermarket chain. In the midst of the recession, the supermarket was able to sell its Alaskan salmon at an incredibly low price, creating a truly competitive advantage. There was much speculation about how it was able to do this, but the answer was as simple as finding a new shipping route, which enabled the store to shorten the journey from Alaska to the U.K., and therefore, reduce the cost of the product.

Teresa’s main point is that almost nothing is impossible if you put your mind to it. CSPs can innovate if they have a clear vision and sufficient imagination to prevent challenges from holding them back.

Teresa goes on to explain that she sees billing and charging as the next big opportunity for innovation, and believes that visionaries will see the opportunities CSPs now have to differentiate themselves and create new revenues. To achieve their business goals, CSPs need to bring their operational team members together, understand their customers and work with partners to deliver the right product at the right time.

In the end, the analyst challenges readers with the following question: “Are you, as a service provider, happy to risk falling behind when the leap comes, or are you one of those already preparing their run up?”

Gulf News…
Telecoms ‘Must Focus on Doing What They Do Best’
Should operators look to Google and Facebook to share advertising revenue? Panelists at the Smart Handheld Summit 2011 in Dubai say no, arguing that CSPs should instead tighten operational efficiency and stick with what they do best—providing Internet access.

Venture capitalist Paul Doany warns that straying into commercial operations, such as new platforms and mobile apps, will be harmful for revenues. On the other hand, Osman Sultan, CEO of du telecom, thinks operators should take part in third-party advertising-based revenue streams, and believes this is possible if telecom operators across the Middle East work together.

Matching the tremendous growth of Internet giants will certainly be a challenge. However, Dr. Bassam Hannoun, CEO of Wataniya Mobile, says operators can drive the telecoms industry forward through management and protection of revenue. In the coming year, Bassam believes the operators who will find success are those who can turn a disconnected value chain into a seamless solution.

Around the World

Connected Planet…
Analysis: Is Bill Shock Pressure Creating a Tipping Point for ‘Great’ Customer Service?
Alex Leslie predicts that customer experience will improve as a result of regulators’ efforts to lower bills for mobile usage. His article was published on the heels of new FCC and CTIA guidelines dictating that network operators send voice or text alerts to users as they approach data limits. Regulators in Australia, Asia and Europe are already following suit.

Even though regulations are often met with resistance, history shows that they can be beneficial in giving rise to improved solutions and services—and customer experiences. For example, previous rules about data usage and billing accuracy led to revenue assurance with communications service providers (CSPs) improving their billing strategies. Do you think history will repeat itself, with the new bill shock regulations opening opportunities for CSPs to differentiate themselves in the customer service department?

Light Reading…
Policy Is Still Strategic, But Changing
A survey by Heavy Reading shows that network operator executives expect policy management to gain importance, and predicts that a new generation of policy gear will be deployed to handle increased functionality. The survey results also reveal interest in using policy control to enable business models with third-party content, and mirror Comptel CEO Juhani Hintikka’s predictions that the next phase in policy control will take advantage of third-party applications with content prioritisation.

What these new business models require is more scalable policy technology that can integrate with charging and billing systems, so that operators have a wider range of triggers to drive policy, both in creating new services and in managing congestion.

Microsperience…
The Four Main Pillars of the Telecoms Customer Experience
Telecoms analyst Teresa Cottam writes that many CSPs are focusing on their own needs rather than looking at customer experience from the customer’s point of view. She says that there are four main pillars to the telecoms customer experience:

1)      Network Experience
2)      Commercial Experience
3)      Product Experience
4)      Service Experience

The pillars need to simultaneously work together while also being individually optimised in order to support the overall customer experience.  Even though customers should be the focus of the business, Teresa stresses that operators still need to be profitable. The key challenge is finding the right tools that will help CSPs improve customer engagement and at the same time, help them increase their revenue.

Around the World

Telecoms.com…
India Unveils Draft Telecom Policy
This past Monday, India unveiled a draft of new policy meant to “facilitate consolidation in the converged telecom service sector, while ensuring sufficient competition.” A major change will be the removal of roaming fees within the country. Policy makers are hoping this move will encourage customers to make more calls outside their home territory.

Amid corruption over the allocation of the telecom spectrum, this new policy also focuses on transparency by issuing telecom licenses and spectrum bandwidth separately rather than bundling them. Do you think this proposed plan will ultimately benefit CSPs and subscribers, and revitalize India’s telecom industry?

Telecomasia.net…
Time to Rethink Data Roaming
Informa Telecoms & Media’s Paul Lambert asserts that the European Commission (EC) regulation for the data roaming market is out of step with the way smartphones interact with the network and how smartphone data is used while roaming.

Paul believes EC regulations should guide operators to charge for usage rather than the number of kilobytes a device consumes. Many smartphones consume data by constantly interacting with the network to update data applications, even when they are not being accessed by users. Thus, data is unwittingly consumed much faster.

Do you agree that it’s time to rethink data roaming?

Bloomberg Businessweek…
FCC to Revamp Phone Subsidy to Spur Expanded Internet Access
FCC chairman Julius Genachowski recently revealed plans to overhaul the U.S. phone subsidy program, the Universal Service Fund, by extending broadband Internet connections in rural areas. The plan will bring wireline and wireless high-speed Internet connections to 18 million homes that don’t have access, increasing the number of people who use high-speed Internet from 65 to 90 percent.

The FCC also plans to revamp fees paid to rural carriers for connecting calls, which chairman Genachowski says could result in significant consumer benefits. We’re looking forward to hearing more details when the final version of the plan is unveiled on October 27^th for the FCC vote.

Around the World

Broadband Traffic Management…
Analysys Mason: MNOs Need a New Approach to Compete with OTT VoIP
A report from Analysys Mason forecasts that third parties could account for as much as 16 percent of mobile service revenue in Western Europe by 2017. Consumer interest in over-the-top (OTT) mobile VoIP applications, such as Google Voice and Skype, are forcing operators to address the issue of how to charge for these types of services. Principal analyst Stephen Sale and research director Tom Rebbeck state that short-term measures like blocking or charging a premium for OTT services fail to address the issue in a sustainable manner, and operators should instead use a scenario-based approach to engage with longer-term market developments and effectively compete. As the report notes, common themes across each scenario include the need for operators to use policy control to manage the price and value of third-party applications, along with the need for them to pay attention to customer behaviour.

Tech Central…
The State of Telecoms in Africa
Africa is quickly moving to high-speed broadband, yet the continent’s ability to offer more Internet services and data access could be hindered by the inability of operators to deliver reasonably priced, fast and reliable bandwidth. Russell Southwood, head of African telecom consultancy Balancing Act Africa, says migrating to LTE may be the solution needed to overcome this roadblock.

Despite the challenges outlined in the article, Africa’s fastest growing sector is the telecoms industry, as noted in previous highlights, which gives hope that operators will spur innovation through continued expansion and better service and greater rural coverage. In addition to LTE, what game-changing technology do you think is needed to achieve a high-speed Africa?

Pipeline Magazine…
Analysts Weigh in on the Customer Experience
Stratecast, Yankee Group and Infonetics Research discuss the customer experience management (CEM) craze and agree that defining CEM can be difficult. The bottom line though: increasing revenue and reducing costs do not automatically equal a better customer experience. However, working on customer experience first and implementing the right “technologies that allow you to do a better job of understanding your customers,” as Nancee Ruzicka of Stratecast says, “[can] reduce costs. They do improve revenues. They do have all of those positive money effects. Then you start to see your business case.” What do you think of the analysts’ points on CEM?