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Six Degrees of Mobile Data Plan Innovation: Capacity-Based Plans

In this seventh installment of the Six Degrees of Mobile Data Plan Innovation blog series, Alcatel-Lucent’s Rich Crowe (@rhcrowe) looks at capacity-based mobile data plans. With capacity-based plans, subscribers are encouraged to use the network when it has spare capacity or to pay a little bit more as the network nears its capacity. Mobile operators can use these plans to reduce network congestion, monetize peak-time data traffic, and better manage the investment required to address continually growing demand for data.

Congested networks and wasted capacity

Fast-rising mobile data traffic – driven by increasing consumption of real-time entertainment on the go – is putting a strain on mobile networks (see Figure 1 as an example). Mobile network operators are working hard to increase capacity so they can meet peak demand and keep subscribers satisfied. Adding capacity can help ensure that users don’t encounter a slow or unresponsive network during mobile data traffic peaks. But it’s an expensive solution that means even more capacity goes unused at off-peak times. Capacity-based plans are an excellent way to slow network growth requirements while monetizing available capacity.

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