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 industry is at an inflection point, and one of the looming disruptors is 5G.
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.
Cable companies still dominate the scene at INTX, the event formerly known as The Cable Show.
What is the best way to support both layer 2 and layer 3 services at the edge of the network that incorporates virtual network functions?
How fast is too fast in terms of communication? Unless our lives and actions start being measured in seconds, do we really need a 43 Tbps connection to fulfill our everyday tasks?
Flash Poll
From The Founder
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
LRTV Huawei Video Resource Center
Predicting Traffic Patterns for Quality Mobile Broadband

4|29|15   |   6:45   |   (0) comments


Accessing information ubiquitously creates complexity and creates heavy traffic onto the network, especially at large-scale events like sporting events or festivals. In this video, Huawei's Mohammad Hussain speaks to experts about how to predict traffic and improve user experience during periods of heavy traffic.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
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
All Upcoming Live Events
Infographics
Network functions virtualization (NFV) is not the easiest of topics to take on board, so here's a Light Reading infographic, developed following conversations with the folks at HP, that helps make sense of where NFV is taking the industry.
Hot Topics
Choosing a Technology Supplier? Consider Changing Your Selection Criteria
Steve Saunders, CEO and founder, Light Reading, 5/18/2015
Verizon Saves 60% Swapping Copper for Fiber
Sarah Thomas, Editorial Operations Director, 5/19/2015
Chattanooga Charts Killer Gigabit Apps
Mari Silbey, Senior Editor, Cable/Video, 5/20/2015
Smarter 'Dumb' TVs Will Drive OTT Adoption
Mari Silbey, Senior Editor, Cable/Video, 5/18/2015
Charter, Bright House: The Wedding's Back On
Mari Silbey, Senior Editor, Cable/Video, 5/19/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
I recently popped down to Texas to chat with CEO Eric L. Pratt about his company, Taqua.
Cats with Phones