Undertake Network Optimization to Stay Profitable, Say Analysts
As mobile broadband usage gains acceptability, primarily due to fixed-rate plans offered by mobile broadband service providers, providers are seeing a fall in profitability. This is because the usage of mobile broadband is going up, but revenues remain constant. Even value added services such as laptops and netbooks have not been able to generate sufficient additional revenue (click for free laptop deals).
In order to increase the penetration of mobile broadband services over fixed lines, telecom service providers had introduced fixed rate plans. This had the advantage of bringing in new users. However, as large numbers of customers have now got used to the service, the level of usage per customer has gone up. It is believed that streaming video - once the networks have the capability to support it - will further compound the problem. Profitability will take a further dip and this is likely to affect the viability of the companies.
The solution, says Steven Hartley, senior analyst at Telecom and Software Consultancy Ovum, lies in network optimization. This will help companies to not only better utilize their existing infrastructure without additional cost, but will also ensure that the growing needs of customers are easily met, without having to move to pay-per-use pricing models which subscribers are not in favour of.
Another area that the service providers need to focus on is customer retention strategies, which will bring down the cost of customer acquisition and raise prospects of long-term profitability. This solution will definitely bring a cheer from customers, as focus on retention usually means better services
