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
One thing is certain: the coming technology changes will affect everyone to varying degrees, including content providers, service providers and equipment makers.
It's time for our industry to call BS on the US government's position on Chinese telco manufacturers.
There are important considerations for companies to keep in mind when moving Domain Name System (DNS) infrastructure to an NFV implementation.
The lies, damned lies and statistics of real open access network operations.
The first independent NFV infrastructure interoperability evaluation was sorely needed and must be built upon in the future.
From The Founder
Light Reading sits down at CES with the head of Cisco's service provider video business, Conrad Clemson, to discuss how NFV and cloud security relate to video, the challenge of managing 4K/8K traffic, the global expansion of Netflix and virtual reality.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Level 3's Jack Waters

2|8|16   |   26:15   |   (0) comments


Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
LRTV Custom TV
The Composable Telco

2|8|16   |   24:46   |   (0) comments


Heavy Reading's Principal Analyst Caroline Chappell presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
LRTV Custom TV
Join Us at the Digital Operations Transformation Summit

2|4|16   |   03:52   |   (0) comments


The Digital Operations Transformation Summit on February 21, 2016 at the Crowne Plaza Barcelona Fira Centre will bring together 50 senior executives to engage in a unique debate on the opportunities and challenges presented by the transformative evolving digital landscape. RSVP now at events@lightreading.com.
LRTV Custom TV
Making the Test: ADVA Ensemble Connector vs. Open vSwitch

2|4|16   |   01:28   |   (0) comments


Light Reading, in partnership with EANTC, recently tested ADVA's Ensemble Connector, which replaces open vSwitch and offers carrier-grade capability and interoperability. The test results strengthen ADVA's credibility as a provider in the virtualization space.
LRTV Custom TV
Bridging the Gap Between PoCs & Deployment in NFV

2|4|16   |   31:50   |   (0) comments


Charlie Ashton of Wind River presents the keynote at Light Reading's 2020 Vision executive summit in Dublin.
Between the CEOs
CEO Chat With Mike Aquino

2|3|16   |   17:34   |   (0) comments


The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Shades of Ray
MWC: Buckle Up for 5G & the IIoT

2|2|16   |   02:28   |   (0) comments


This year's Mobile World Congress looks set to be a 5G land grab and a chance to get down and dirty with the Industrial Internet of Things (IIoT) – but what will the 5G discussions actually be about?
LRTV Custom TV
Case Study: Building China's Next-Gen TV Networks

2|2|16   |   5:01   |   (0) comments


With over 2 billion viewers worldwide, Shenzhen Media Group is one of China's largest content producers. By partnering with Huawei and Sobey, SZMG was able to modernize media operations with the Converged News Center, a production studio that is a model for next-generation workflows.
LRTV Custom TV
Quad Channel Modulator Driver with 46 Gbaud Capability from MACOM

1|28|16   |     |   (0) comments


MACOM's MAOM-003427 is the industry's first surface-mount modulator driver with 46 Gbaud capability to support next generation 200G and 400G applications.
LRTV Custom TV
Video Infographic: Validating Cisco's NFV Infrastructure

1|26|16   |   02:24   |   (1) comment


We all know that the network of the future will be virtual, but when will virtual become a reality? This video infographic covers the four key areas in which Light Reading, in partnership with EANTC, tested Cisco's NFV infrastructure: performance, reliability, multi-service capabilities and single pane of glass management.

For the full report, see

Between the CEOs
CEO Chat With Phil McKinney, CableLabs

1|22|16   |   13:36   |   (1) comment


At CES in Las Vegas, we met with Phil McKinney, CEO of CableLabs. Phil provides an update on the rollout of DOCSIS 3.1, his views on the future of open source and how consumer interest in virtual reality could affect network traffic.
Between the CEOs
Ericsson CTO on the Changing Telecom Market

1|21|16   |   10:26   |   (0) comments


At CES 2015, CTO of Ericsson, Ulf Ewaldsson, sits down with CEO of Light Reading, Steve Saunders, to discuss the changing telecom market, the new partnership with Cisco and the future of the telecom industry.
Upcoming Live Events
March 10, 2016, The Cable Center, Denver, CO
April 5, 2016, The Ritz Carlton, Charlotte, NC
May 23, 2016, Austin, TX
May 24-25, 2016, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Did Juniper Pay 'Peanuts' for BTI?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 2/2/2016
Google's 5G Radio Ambitions Are Expanding
Dan Jones, Mobile Editor, 2/5/2016
Vodafone: Flexible Work Policies Boost Profits
Sarah Thomas, Editorial Operations Director, 2/8/2016
WiCipedia: Faulty Feminism, Worthy Women & Peculiar Perks
Sarah Thomas, Editorial Operations Director, 2/5/2016
Cincinnati Bell Joins Weight Watchers Club
Alan Breznick, Cable/Video Practice Leader, 2/5/2016
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Animals with Phones
Happy Groundhogs for Technology Day! Click Here
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and G.fast for copper plant evolution and the various deployment possibilities for FTTH/B.