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Eslambolchi: 10 Service Provider Pain Points


Dr. Hossein Eslambolchi, chairman and CEO of 2020 Venture Partners, has sent one of his Top Ten lists. This time, for your edification, the Top Ten Service Provider Pain Points:

1) Flat ARPU
Where is the capex to support 50-percent traffic growth year over year for quad-play services?

2) Network Congestion
How do you plan for capacity when mobility induces temporary congestion without any warning?

3) All-You-Can-Eat Connectivity Services
Good for content providers, but bad for service providers.

4) Peer-to-Peer Traffic
It's growing fast, but there is no business model in sight to monetize it.

5) Over-the-Top Video
Service providers feel their networks are being robbed for this kind of VoD delivery.

6) Network Security
We're seeing attacks, attacks and more attacks. Lots of time, cost and resources exhausted fending off network attacks.

7) IPv6
This is a massive "must do" with no incremental revenue attached.

8) Regulations
Net neutrality is probably hampering a packet monetization solution that could make service provider traffic more profitable.

9) The Inability to Monetize Packet Traffic
Service providers are living with low-margin "dumb"-pipe revenues while Google and others are gaining high-margin traffic via over-the-top applications. This isn't sustainable for service providers, especially on wireless networks where spectrum is constrained.

10) Customer Churn
When customers aren't happy, they churn. When they churn, service providers lose money.

Now a question: What do you think service provders should do in 2011 to eliminate some of these pain points?

For more on Dr. Eslambolchi and his various corporate roles, see:

— The Staff, Light Reading

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Bob Ackerman
Bob Ackerman,
User Rank: Light Beer
12/5/2012 | 5:15:21 PM
re: Eslambolchi: 10 Service Provider Pain Points

Once again Dr. Eslambolchi nails it - the need for service providers to reimagine and reinvent their business models (and supporting architectures) while they still have meaningful cash flow.  The challenge for the vast majority of these providers is the speed - or lack thereof - with which they have historically responded to strategic challenges.  In most cases, the solutions to their challenges will be found outside of their own organizations - presenting yet another challenge - PARTNERING. 

User Rank: Light Beer
12/5/2012 | 5:15:20 PM
re: Eslambolchi: 10 Service Provider Pain Points

"What do you think service provders should do in 2011 to eliminate some of these pain points?"

Stop pretending to be ISPs and go back to run national Phone Companies again.  Like in the olden days, you know, when you could extract rent from a loyal customer base running a single Service for decades, with your lines at 99% utilization, and without having to bother with annoying changes in usage or with technical advances.

Geez, I can't hear this whining anymore.



User Rank: Light Beer
12/5/2012 | 5:15:19 PM
re: Eslambolchi: 10 Service Provider Pain Points

In most cases, the solutions to their challenges will be found outside of their own organizations - presenting yet another challenge - PARTNERING.


But the capital for these solutions may be  more than those with solutions can come up with, even with partners. The cost isn't just access.


But I concur that the service providers need to reinvent their business models to maintain market share against those already entrenched.



User Rank: Light Beer
12/5/2012 | 5:15:18 PM
re: Eslambolchi: 10 Service Provider Pain Points

How about figuring out how to make profit based on the explosive growth in network service (L3/2) sales volumes, fueled by the customers' increased dependence on peer-to-peer, rich content etc. packet based services?

The solution lies in being able to deliver the service at better cost efficiency than the competition, to get higher margin.

And to deliver these solutions takes proactive approach to break through innovations, not the "it's not in our plan, so don't bother us" type monopolistic mindset that has somehow stuck with the network SPs even in this competitive age.

Bob Ackerman
Bob Ackerman,
User Rank: Light Beer
12/5/2012 | 5:15:17 PM
re: Eslambolchi: 10 Service Provider Pain Points

I think this is where they would like to stay - IF they could.  VoIP and services like Skype have sucked the margin out of the legacy business.  Not the first time this has happened nor will it be the last.  Change is the only constant and these folks need to figure it out - or get out of the way.  Just ask the original main frame manufacturers - The Bunch, the mini-computer manufacturers, most of the PC manufacturers, legacy air carriers, and on and one goes the list... Adapt, evolve or die..  Technology-driven commercial evolution..

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