Light Reading
Dr. Hossein Eslambolchi gives us his take on how to fix the 10 'pain points' causing havoc in service-provider networks

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
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
Communications service providers need to become digital service providers, but what exactly does that entail?
Here are some ideas for how cable operators can help low-income households connect to pay-TV and broadband services.
Once SDN and NFV are added to already complex wide area networks, management and security become even greater challenges for operators.
Operators should leverage their network, QoS, billing and big data to compete against OTT players with both consumer and enterprise offers.
Is it smarter to centralize network intelligence for LTE-Advanced and 5G, or continue the Flat-IP 4G trend of pushing intelligence to the edge?
Flash Poll
From The Founder
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (11) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (1) comment


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Is Redbox Instant Shutting Down?
Mari Silbey, Independent Technology Editor, 9/30/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
Like Us on Facebook
Twitter Feed