Light Reading

Solutions to 10 Service Provider Pain Points

Column
Column
Column
2/3/2011
50%
50%

As a follow-up to Eslambolchi: 10 Service Provider Pain Points, Dr. Hossein Eslambolchi, chairman and CEO of 2020 Venture Partners, has offered some solutions that service providers can apply to ease their aches:

1) Fixing Flat ARPU

  • Attempt to push the ARPU up via vertical integration into higher-margin content and advertising with services surrounding education, e-health and mobile wallet, etc.
  • Re-engineer the network: Cap traffic growth on legacy technologies and grow it on the cost-reduced technologies. The trick is to look for capital unit cost reduction for an end-to-end service, not just a cost reduction of one box built into an end-to-end service connectivity.
  • Improve margins by focusing on optimization, cycle-time reduction, defect reduction, automation, just-in-time provisioning, inventory management and churn reduction.


2) Alleviating Network Congestion
  • Offload mobile data traffic from the cellular network to Wi-Fi. Build free Wi-Fi in strategic locations, such as sports stadiums.
  • Provide network flexibility by embracing WiMax, Wi-Fi and Cellular, HSPDA, HSPAD+, LTE and ultimately true 5G using IMT-Advanced (OFDMA based).
  • Create a cross-layer feedback loop with the applications and devices. Establish your presence on the devices so they can warn the network when capacity problems may be cropping up.


3) Curbing All-You-Can-Eat Connectivity Services
  • Move to a usage-based service plan, with different plans for different qualities of experience -- gold, silver, bronze, etc. Charge like the electric company.
  • Be flexible. I see usage-based plans happening now, but it may not be a long-term solution. My sense is we will see more effective ways to deliver content over time.


4) Putting Up With Peer-to-Peer Traffic
It's growing fast, but there is no business model in sight to monetize it. You may have to charge for it by moving to a usage-based service plan. Also, you can monetize some of it with ad insertion, and other value-added services such as recording, reply and deep-packet inspection.

5) Monetize Over-the-Top Video
  • Charge for OTT video traffic by moving to a usage-based service plan.
  • Leverage OTT capability to drive your own video product agenda.


6) Invest in Network Security
  • Invest in real-time and early-attack detection and diversion.
  • Sell mobile security apps to customers for $2 per month per user.
  • Adopt services from Sensory Networks Inc.


7) What to Do About IPv6
Just do it. This is the cost of doing business.

8) Regulations
  • Keep pushing back on net neutrality.
  • You cannot milk the consumers any more. Carriers need to stop worrying and think about added value they can bring to the table with their platforms.


9) Monetizing 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. What to do?

Get advertising revenue from packet traffic. Leverage the last-mile connectivity (combine wireless and wireline) and utilize deep-packet inspection technology to compete with Google and others for ad revenue.

10) Curing Customer Churn
Take care of items 1 thru 9 above and this problem will go away, too. Also, establish retail stores like Apple and train customer care reps to teach the masses which applications and platforms are good for them. Sell them platforms and apps at the stores instead of devices; the margin's in the software, not the gadgets that need to be subsidized.

Sounds like a lot of work, doesn't it? What do you think service providers should do first?

— The Staff, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
franciszadan
50%
50%
franciszadan,
User Rank: Light Beer
12/5/2012 | 5:13:24 PM
re: Solutions to 10 Service Provider Pain Points


I whole heartedly agree with HE's statment re pushing up ARPU through vertical integration into higher-margin content.   This is what I did at Corebridge and now Uciology and has always paid dividend.

More Blogs from Column
The web services giants such as Facebook, Amazon and Google might be defining the next generation of 'carrier class' networking technology.
As carriers are partnering with a growing amount of third-party service providers, payments are the next logical step in growing these partnerships.
There are many variants of the CRAN concept, but all have the potential to deliver major capex and opex savings in the network.
The FCC's upcoming 600 MHz spectrum is a novel idea to foster a competitive framework for the future.
Network appliances can play an important role in policy-driven virtualized networks, argues Dan Joe Barry.
Flash Poll
From The Founder
Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
Live Streaming Video
BTE 2015 Sponsor Keynote: HP
Dr. Prodip Sen, CTO, Network Functions Virtualization, HP
LRTV Custom TV
Red Hat Demo

7|2|15   |   10:53   |   (0) comments


Red Hat's Nicolas Lemieux demonstrates how Red Hat is driving innovation through open source communities.
LRTV Custom TV
Red Hat's Approach to OpenStack Adoption

7|2|15   |   5:17   |   (0) comments


Red Hat's Radhesh Balakrishnan outlines his company's open source strategy for both enterprises and telcos.
LRTV Custom TV
The New IP Goes Mobile With vEPC

7|2|15   |   1:12   |   (0) comments


Heavy Reading's Gabriel Brown discusses results of a Light Reading survey sponsored by Brocade that shows a clear commitment by mobile operators to move quickly to virtual EPC deployment.
LRTV Custom TV
Making Business Sense of SDN

7|2|15   |   1:42   |   (0) comments


Results of a Brocade-sponsored survey show that CSPs have a clear sense of SDN use cases but are wrestling with the business case. Sterling Perrin of Heavy Reading looks behind the numbers.
LRTV Custom TV
NFV Will Be Here Sooner Than You Think

7|2|15   |   2:22   |   (0) comments


Forget the usual ten-year cycle for new technologies – NFV will be a core part of CSP networks in five years, based on results of a Brocade-sponsored survey, says Heavy Reading's Caroline Chappell.
LRTV Custom TV
The New IP Gains Traction With CSPs

7|2|15   |   1:42   |   (0) comments


Roz Roseboro of Heavy Reading analyzes results of a Light Reading survey sponsored by Brocade showing that CSPs are getting serious about making the transition to the New IP era.
LRTV Custom TV
It's (Real) Time for Analytics

7|2|15   |   1:42   |   (0) comments


Heavy Reading's Jim Hodges looks at how CSPs say they plan to use analytics to deploy new services in real time as part of The New IP, based on results of a survey sponsored by Brocade.
LRTV Documentaries
IoT in Action

6|30|15   |   1:39   |   (8) comments


Two co-workers discuss the benefits of IoT technology.
LRTV Interviews
Ericsson Opens Up on OPNFV

6|30|15   |   14:16   |   (3) comments


Martin Bäckström, VP and head of industry area Datacom at Ericsson, talks to Light Reading founder and CEO Steve Saunders about the emergence of OPNFV, the importance of standards and Ericsson's OPNFV plans.
LRTV Custom TV
NetNumber Founder Discusses NFV/SDN Impact on SP Networks

6|26|15   |   4:15   |   (0) comments


NetNumber Founder Doug Ranalli examines why SPs need a new network infrastructure for service agility. While NFV and SDN are the tools, the old ways of thinking about signaling control are inhibitors. Doug provides his recommendations.
LRTV Custom TV
Orchestrating NFV vCPE Services Across Multivendor Networks

6|26|15   |   5:46   |   (0) comments


Nirav Modi provides an overview of vCPE, the fastest-growing NFV use case, showing how Cyan's Blue Planet orchestrates vCPE services across a multivendor infrastructure to rapidly deliver new managed services for business customers.
LRTV Custom TV
ZTE at LTE Summit Amsterdam 2015

6|26|15   |     |   (0) comments


As one of the leading global telecommunications providers, ZTE presented its cutting-edge technology at LTE World Summit 2015 in Amsterdam. On display at ZTE's booth were the latest R&D achievements in wireless, 5G development, HetNet, deep convergence of FDD and TDD, and RCS/IMD/iSDN/vCN.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
All Upcoming Live Events
Infographics
Hot Topics
Who's Feeding Fiber to LinkNYC Hotspots?
Mari Silbey, Senior Editor, Cable/Video, 6/29/2015
What's a Gigabit Good For?
Carol Wilson, Editor-at-large, 7/1/2015
Colt to Jettison Ailing IT Business
Iain Morris, News Editor, 6/30/2015
Eurobites: Activist Investor Takes Stake in AlcaLu
Paul Rainford, Assistant Editor, Europe, 6/30/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
Cedrik Neike, SVP of Global Service Provider, Service Delivery, at Cisco, talks to Light Reading founder and CEO Steve Saunders about solving service provider customer problems in a virtualized, DevOps world, including multivendor support and the future of network procurement.
Cats with Phones