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Data Growth Spurs Policy Management Evolution

Ari Banerjee
Heavy Lifting Analyst Notes
Ari Banerjee
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There are two elements to the exponential data growth happening globally: growth of data being transported and growth of data being created. And with this data growth comes challenges for communications service providers (CSPs) in providing a consistent and quality experience for customers accessing their data services. CSPs adopting a smart pipe strategy can differentiate themselves and catalyze revenue-generation opportunities by charging customers a premium for delivering innovative content services with premium quality of experience (QoE). In order to do so, CSPs must employ cutting edge policy-enabled BSS solutions to help them deliver and handle the needs of new and innovative services such as voice-over-LTE (VoLTE), Rich Communication Suite (RCS), WiFi services, modern data plans, and over-the-top (OTT) applications.

The role of policy management has undergone a metamorphosis in the last few years. Its evolution and the change in how policy management solutions are being deployed has a lot to do with how CSPs are rethinking their revenue monetization strategies, with the ultimate goal of being able to monetize quickly and drive more loyalty and customer satisfaction.

Heavy Reading's primary research clearly sees market need for software solutions that can inject intelligence into service provider infrastructure and provide those service providers with real-time, actionable insight and visibility into their subscriber behavior. The goal is to provide a unified solution suite that can address multiple areas across previously siloed product categories. Though operators globally are focusing on data monetization, different segments of operators have different use cases in mind when it comes to data monetization.

As operators move forward with their interest in policy and charging, they should keep other lines of business and parts of the back office in mind as it will be crucial that they all work as a whole. For example, CSPs who are already have or are implementing an analytics solution should make sure it is closely aligned with their policy management and charging solutions. An analytics-driven approach to policy management and charging will help in enhancing customer experience by building services, which takes into account subscriber behavior and helps in creating and launching personalized offers to customers based on the analytics.

The latest Heavy Reading Service Provider IT Insider, "Smart Data Monetization: Operator Strategies Take Shape," explores evolution of policy management and the change in the manner in which policy management solutions are now being deployed by CSPs. It looks at the potential for policy management to serve as a cooperative platform for network and IT departments to collaborate. The report also assesses different business drivers for using policy management in data monetization initiatives. It includes results from an exclusive Heavy Reading survey of network operators regarding their deployment strategies regarding policy management and charging.

— Ari Banerjee, Analyst, Heavy Reading Service Provider IT Insider

Smart Data Monetization: Operator Strategies Take Shape, a 15-page report in PDF format, is available as part of an annual subscription (6 bimonthly issues) to Heavy Reading Service Provider IT Insider/a>, priced at $1,595. Individual reports are available for $900.

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User Rank: Blogger
12/18/2013 | 11:23:19 AM
Interesting post, Ari. Do you have any examples of specific services that operators can build and charge for? The ones you mentioned like VoLTE seem like they'll need to be free. Most OTT apps already are too, so I imagine an operator's version would have to be highly differentiated to make it worthwhile to pay for.
User Rank: Blogger
12/18/2013 | 11:21:54 AM
Re: Certainly needed
Policy will be really important there in setting the rules for each side of the container for dual-mode smartphones. I bet we'll see that start to take off next year.
User Rank: Light Beer
12/18/2013 | 9:13:24 AM
Certainly needed
Advanced policy management policies should help the growing number of businesses with BYOD policies. If done right, this should help with businesses reimbursing for only business use of device, not for personal use.
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