Improving Network Operator Revenue/Profits

We recently heard that U.S. wireless carriers could see the worst net customer additions in years during the first quarter, according to a research note from investment banking firm Jefferies & Company. The firm said that the U.S. wireless industry as a whole could experience its first ever net loss of postpaid subscribers during the period.

“Over the longer term, we believe the wireless industry faces the twin headwinds of 100%+ penetration and, eventually, decelerating smartphone additions as the base reaches saturation,” Jefferies’ analysts wrote. “Voice revenues are already in decline. We believe a material drop off in the growth rate of data revenues from slowing smartphone adoption, particularly in 2H12, is a growing risk.”

Arguably, the cellular communications marketplace has reached a point of saturation in terms of customer acquisition. Network operators are increasingly reliant upon cannibalizing customers from each other and growing revenue from non-voice communications. There are many other potential areas for driving revenue growth and improved profitability including:

• Subscriber data mining and management
• Leveraging presence and location determination
• Value-added Service (VAS) applications and content
• Working with third party application and content providers
• Mobile advertising, commerce, stored value and subsidized services
• Expanding the scope of Machine-to-Machine (M2M) communications
• Leveraging network improvements such as Self Organizing Networks (SON)
• Provide Free-to-End-user (FTEU) applications and services paid by third parties

We believe there are many opportunities for network operators to increase revenues and improve margins without focusing solely on the competition.

For more information, see:

About Mind Commerce

Analysis of telecom and ICT infrastructure, technologies, and applications.
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