Revenues from telecoms services in Europe are continuing to decline, according to recent news . As might be expected the decline is much larger in fixed networks than in mobile, although broadband services continue to show growth. Operators recognise this by continuing to invest.
Of course, they can’t continue to invest without the expectation of securing growth somewhere. This imperative is starting to be realised through creative pricing. Different operators are trying different approaches: some are capping the amount of data that a user can consume and introducing tiers, while others are introducing clear speed restrictions with options to upgrade to faster rates.
There are likely to be many more variations on these themes and it’s not clear which is going to offer the best chance of generating better future returns. There’s a lot of discussion, but it’s fair to say that we don’t know the answers yet. What is clear is that long-held notions of how to capture value from customers are being questioned and over-turned.
The ability to be creative and inventive with pricing schemes is clearly going to be crucial. Models that do not work need to be swiftly replaced by others. This agility requires a sophisticated infrastructure to determine what works, what doesn’t and what gains consumer acceptance – which can all be contentious issues.
Cutting through this uncertainty is one of the primary motivational factors behind the deployment of policy-enabled networks. By linking policy management to an understanding of user behaviour and network performance, network operators can refine their pricing packages to generate value. They can then determine the right technical and commercial approach for their customers and network.
For this to work, they need to go beyond traditional policy frameworks and ingrate user devices into their thinking. This means that they need to extend policy control into user devices. They need to be able to measure, monitor and manage user consumption in devices, not only to ensure an optimised experience but also to ensure that users conform to the packages they purchase.
By implementing solutions in user devices, operators can also ensure they are in a position to change pricing policies in the future if circumstances change or if they find that their ideas need adjusting. They can experiment and test ideas and offers. The agile operators of the future needs true end-to-end policy control and management capabilities to achieve this – abilities that are enabled by GoS Networks.