Speed Introduction of New Intelligent Applications and Time to Revenue

Next Generation Communications Blog

Speed Introduction of New Intelligent Applications and Time to Revenue

When you consider the work network operators are doing to build out their next generation communications infrastructures to be able to deliver new services and applications, and when you think about the evolution of end devices on which these new applications will run, the obvious question is, how can network operators keep up with the demand for applications to leverage these latest technologies.
 
Quite simply, the only way they can reasonably deliver new, innovative, intelligent applications quickly is to solidify relationships with third-party developers and content providers. Today's network operators have to focus on their delivery capabilities, and lack the resources to remain competitive if they also have to develop all the applications on their own. 
 
It's clear that network operators understand the need to work with third parties, as most applications already come from other sources, not from the operators themselves. In fact, other than expanding footprints in underserved markets, network operators are seeing relatively flat revenues from network access, due to market saturation. Thus, in order to increase revenues in a highly competitive environment, they need to explore new options for bringing compelling services to market, which they cannot accomplish on their own. The only new wireline service, for instance, that has found wide-scale market penetration is IPTV, compared to the number of new Web services developed by the developer community and other third parties.
 
It's a clear trend, and one that will continue to grow as more software platforms are leveraged to create environments to allow easy development and introduction of creative, and potentially revenue generating services. 
 
Highlighting this fact, a recent Alcatel-Lucent white paper discusses a survey of 132 service providers that were asked to identify the three most important factors that will contribute to the success of mainstream telcos. Two responses dominated their opinions: Rapid transition to all-IP networks and, topping all responses, more effective partnering and collaboration with third-party providers.
 
These two factors effectively comprise Alcatel-Lucent's application enablement strategy, a combination of building out intelligent, all-IP high leverage networks, and using the capabilities of those networks to develop deeper relationships and new business models with third-party providers.
 
By collaborating closely with third-party developers and content providers - and by allowing them greater access to network resources, including QoS capabilities, network-based storage, and key subscriber and device data - operators will not only create long-lasting relationships with these providers by increasing their networks' value to them, but will also allow intelligent, contextual applications and services to be more efficiently developed and rolled out, lowering all-important time to revenue.
 
Certainly, there are barriers that must be overcome - namely, despite a desire to work with third parties, network providers have traditionally not created a valuable enough value proposition that would drive these relationships to new levels. But, by enhancing their network capabilities and, more importantly, exhibiting trust in their partners by making these capabilities available to them, operators will have taken a significant step towards creating an meaningful ecosystem that will increase collaboration and entice developers to work more closely with the operators to quickly develop new revenue streams.
 
To understand more about how network operators can leverage their networks to solidify their third-party relationships and help speed the introduction of new intelligent applications, read the white paper, Working with Third Party Services: An Action Plan for Network Providers.
 


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