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App-Centric Mobile Operators on the Rise

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Mobile operators' investments in the past few years have slowly shifted from traffic management to service differentiation, and they are turning towards mobile apps to set their pricing plans apart.

According to new research from Allot Ltd. (Nasdaq: ALLT), 85% of operators across the globe now have some sort of "value-based" pricing plan, whether it be shared data, zero-rating apps, a partnership with an over-the-top provider, or something else. (See Allot: Apps-Based Plans Bring Higher ARPU.)

It's not just operators in emerging markets, either. Europe is leading the pack with service innovation, followed by Latin America and North America, according to Allot. Check out the company's infographic below for more on its report findings and what they mean for operators and their customers.

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7/22/2014 | 3:05:13 PM
Re: video or music
I don't disagree that partnering with streaming providers makes sense, but it seems like a repeat of when the carriers each thought they should create their own music stores.

I've wondered why cellular providers don't go at satellite radio.  That seems like an industry very vulnerable.  I'm much rather stream via Bluetooth than pay $220 a year for some channels that I probably wouldn't miss yet can't bring myself to cancel. 

The holy grail always, in my view, is sports and even news.  That's the only thing I would miss with XM, and I understand exclusivity and all, but I think there is a package (and truly a package so people like me with little brains can buy it without thinking) that could take share of wallet and represent a new revenue stream for the carriers.
7/20/2014 | 1:55:02 PM
Re: video or music
I definitely think that the operators are on to something by partnering with music streaming services to differentiate. Video is another option, but it is really going to require a serious commitment to quality that I don't think many operators should stand up and say that they can deliver on. 
7/18/2014 | 9:12:13 AM
Re: video or music
With new customers being very hard to find, operators nowadays partner with video streaming services in order to reduce churn and satisfy the existing customer base. This is clearly not a revenue generating offering, but rather a differentiation strategy.
7/15/2014 | 9:41:09 AM
video or music
Surprised to see that 12% of operators have some kind of video streaming partnership. That's so bandwidth intensive, I would think they'd stay away from video. The partner de jour in the US seems to be streaming music these days.
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