What Technologies Are Impacting Policy Management?

Posted: February 22nd, 2013 | Author: | Filed under: Industry Insights | Tags: , , , , , , , , , , , , , | Comments Off on What Technologies Are Impacting Policy Management?

I was recently talking about policy management with my colleague, Ulla Koivukoski, and started thinking about how far we’ve come and how it will continue to evolve. All of the new and advanced technologies that have been introduced in the past couple of years are having a big influence on this, and will continue to shape how communications service providers (CSPs) utilise policy management capabilities.

One of the most prominent of these technologies is 4G/LTE. Because LTE enables faster data speeds, customers will inevitably want to consume more and more data. CSPs who can gain deeper insight into such data usage will have a clear advantage. For policy management specifically, this means the ability to provide different packages with different rating models that are unique to customers’ behaviours. It also means implementing bandwidth or data caps in certain instances– otherwise, we’d use all of our network capacity!

Adding to this, it’s crucial for CSPs to identify the impact of down throttling on individual customers who are likely to churn and/or cause a revenue loss. For example, if customers experience poor quality of service (QoS), CSPs need to be able to proactively offer them a higher bandwidth or data package. In this way, the risk for revenue loss and customer churn can be mitigated while simultaneously improving QoS for the right customers. Further, a predictive analytics engine can suggest which customers will be most valuable for CSPs based on pre-defined Key Performance Indicators (KPIs), and which customers desire a corrective action to keep them on-board (e.g. a dedicated bandwidth prioritisation).

CSPs also can benefit by tightly coupling policy control with real-time charging. Like our recent consumer research demonstrated, financial considerations like personalised product/service promotions can influence customer behaviour. So, if CSPs can not only dynamically control the packages that are being delivered to customers and how, but also competitively price their offerings, they can increase the amount customers are willing to spend and maximise their revenue.

Linked closely with this is big data, which is giving CSPs a huge opportunity to add value. To tap into the power of big data, CSPs must first sift through and analyse the immense data volumes, both structured and unstructured, to get complete views of their customers. With this, CSPs can offer new services and bundles to customers with both efficiency and rapid time-to-market. Adding to this, a combination of advanced analytics and mediation enables CSPs to begin use cases like proactive broadband upsell for customers based on the prediction of their changed usage pattern, premium user identification, and automatically approaching customers with the right offer, in the right context.

Another technology making an impact on policy management—and one that goes hand in hand with big data—is the cloud. More and more, the cloud is one of the best options for storing and processing data. It allows for offline processing and the ability to trigger information online, to achieve real-time, personalised campaigns. Latency and security threats remain a concern, but if these can be managed properly, then I see policy making a big shift to the cloud.

Of course, this is just the tip of the iceberg – there are many more advancements being made every day. As our world and the technologies in it continue to evolve, I look forward to seeing how policy management will grow and change to drive a better, more efficient customer experience.