New Service Provider Revenue Monetization Model
Just as LTE has evolved to be the predominant technology for mobile broadband providers -- generating an average data volume per user of 168% higher than 3G data – so must the traditional charging model change. One charging model growing in popularity is Sponsored Data Charging.
Sponsored Data Charging enables mobile subscribers to view, stream, and benefit from sponsored content and use applications over the mobile service provider’s network without that data usage coming out of their monthly plan. The data charges that a subscriber would pay for the sponsored content are paid instead by the third-party provider owning the content. Even more importantly, a subscriber can test out certain sponsored applications and features for a short time to determine whether to subscribe, without impacting monthly data-plan limits.
Not only is Sponsored Data Charging built for massive broadband usage from all kinds of connected devices, it also can support emerging technologies such as VoLTE and NFV. Key target industries include advertising, retail, media, entertainment, healthcare, and financial services.
How Does Sponsored Data Charging Work?
Sponsored Data Charging requires flexible charging and rating models. One example is zero rating, where an application provider or third party pays for subscriber data consumed by the specific application or service, as well as data rewards, where the users are rewarded with additional buckets of data to extend their data plans.
For example, a mobile app developer could pay the mobile service provider a negotiated rate so the subscriber can use the app without worrying about data usage and overages. Zero rating data supported by advertising is a variation of this type of data plan. Another example is where a marketer provides a customer with a data reward as a bonus for making a mobile purchase, trying out their service, or for lead generation. Depending on the use cases with third parties, the real-time charging system needs to ensure accurate charges to the sponsor rather than to subscriber accounts.
Sponsored Data Monetization Partner Ecosystem
Sponsored data programs are proving to be an effective method of both monetizing mobile data consumption and attracting new subscribers on a global basis. To take advantage of this growing opportunity, Alcatel-Lucent is collaborating with Aquto. The collaboration takes advantage of Aquto’s deep understanding of the digital marketing ecosystem and combines with Alcatel-Lucent’s policy and charging expertise and experience.
Using the Alcatel-Lucent SurePay® platform, Aquto enables mobile service providers to rapidly roll out data sponsorship programs including data rewards and zero-rating of mobile apps/content. As shown in the diagram below, the service integrates with the existing IT infrastructure and with minimal investment, enables the service provider to monetize almost immediately by leveraging a global network of sponsors, which includes app publishers/developers, advertisers, and marketers.
Diagram: Sponsored Data Monetization Platform [Source: Aquto]
Aquto offers two programs for mobile service providers: Cloud-based sponsorships and the service provider user-engagement application.
Cloud-based sponsorships: To enable zero rating of mobile content, or offer data rewards to users, app publishers/developers, advertisers and marketers can leverage easy to integrate capabilities to keep users connected with their content and services.
Service Provider user-engagement application: In an increasingly competitive market, service providers have to devise new ways to keep users engaged. It is a destination to discover apps and services, offers from advertisers through which users can experience the benefits of zero rating and data rewards. The app draws users in and provides operators with the opportunity to engage users in a positive setting.
This sponsored data concept is not just about free Internet. It is quickly presenting itself as a vast opportunity for service providers to tap into a growing mobile ecosystem that is made up of app marketers and advertisers. Users are now spending more time with their mobile devices than in front of the TV or desktop. The timing is right for service providers to engage.
The combined expertise of Aquto and Alcatel-Lucent – including experience working with mobile operators -- has let leading mobile service providers rapidly roll out this new service that allows new revenue and monetization streams.
The demand for oil and gas capabilities has never been greater and continues to grow. In fact, world energy needs are expected to increase by roughly 40 percent by 2030, according to the International Energy Agency, with the fast-developing China and India leading the way in energy consumption growth. The demand for oil is expected to grow by 20 percent, and gas needs should expand during this time by 50 percent. As much as dependency on fossil fuels is seen as needing to be reigned in, clearly oil and gas demand is going to go up despite greater reliance on alternatives. .
With that said, meeting energy needs is getting more complex. Hydrocarbon delivery is challenged by the fact that so much of the relatively low-hanging fruit has been plucked. The energy reserves of the future will increasingly come from deep-sea drilling, tar sands mining and other more challenging methods. Hydrocarbon delivery also will have to travel farther distances.
To effectuate cost-effective and efficient exploration and fuel deliveries in more challenging environments, it has become paramount that gas and oil communications be upgraded to next generation capabilities.
“Maximizing production in these settings has become essential, yet the greater the geological barriers to easy extraction, the greater price, security and safety risks any given project faces,” noted a recent paper by Alcatel-Lucent, DYNAMIC COMMUNICATIONS for Oil & Gas.
Alcatel-Lucent has worked with energy customers for decades and as stated in the headline has focused on three key areas to help oil and gas companies reach hydrocarbons faster, farther, and safer.
“Clearly, the need to minimize risk, ensure the safety of personnel and protect the integrity of plant, pipeline, platform and wellhead projects, plus deal with highly dynamic market factors, has increased the need for new business and operational models,” noted the company in the paper. “This is where technology serves as the cornerstone for innovative and winning solutions.”
Communications speed is needed to help connect distant sites with the energy company central offices, and to deliver real-time and highly resilient communications solutions to deal with the changing conditions on the ground.
Being able to go farther with gas and oil communications means there can be better supervision and more cost-effective operations.
“Challenges include monitoring and troubleshooting remote and hard to access wellheads, pipelines and collection points,” noted the paper. “Just as important is the ongoing comfort, and productivity of one of the most valuable assets of any company — its workforce.” Workers cut off in an oil rig far out at sea need as many creature-comforts as they can get. That means good communication with family and the outside world.
Cutting edge communications also can help with safety.
A flexible network ensures that there is end-to-end safety of physical assets, personnel and data. The network must support a wide variety of standards, work across both legacy and IP-based networks, and have good uptime to deliver on this safety need.
Alcatel-Lucent helps the industry get there with its end-to-end oil and gas solutions. It offers a converged, multiservice, mission-critical Wide Area Network (WAN) composed of: microwave; optical and IP/MPLS products; mobile/wireless networks that include WiFi, WiMAX, 3G, 4G/LTE, TETRA/P25; analogue UHF/VHF, dispatchers and applications; integrated SCADA and CCTV; and integrated navigational aids, meteorological instruments, entertainment systems and operations control center systems.
The thirst for energy resources is seemingly unquenchable, and the fact that increasingly hard to reach places need to be explored and brought online, is putting a premium on having next generation dynamic communications to assure operational excellence regardless of where location or climate.
]]>By Erin Harrison
Most of us are familiar with the technology of Voice over IP (VoIP) – which simplistically is the use of the Internet Protocol to do voice communications over data networks that include the Internet itself. And, while most VoIP traffic has been over wired networks, a new voice technology is evolving called Voice over LTE (VoLTE) that is shifting the communications paradigm and enabling new services beyond traditional telephony over mobile networks.
In a recent article in Alcatel-Lucent’s Enriching Communications e-zine, The New Mobile Conversation Starts with VoLTE, author Edmund Elkin states that, “It’s no longer a question of whether VoLTE is the right choice for the new mobile conversation. It’s really a matter of determining when to begin the move to VoLTE, developing a migration strategy and selecting a partner to accompany them on the journey.”
He points out that only a couple of years ago many people believed that legacy 2G/3G circuit voice would be adequate for 4G LTE subscribers. However, operators have now realized the value of VoLTE. For example:
At the end of 2010, 72 percent of all mobile service revenue worldwide was associated with voice traffic. However, the average revenue per user (ARPU) for voice services has been shrinking. In addition, pressure is mounting from things like inexpensive or free voice services like Skype which can be used over the increasingly ubiquitous Wi-Fi networks that can be accessed by smartphones.
What this means is that customer “stickiness” and long-term economic viability is now an issue of accelerating the deployment of 4G networks, and through a variety of strategies and new business models managing the transition of making IP-based voice an integral part of the mix. With VoLTE as part of their 4G LTE portfolio service providers will be well-positioned to make the transition to the all IP world users are driving and competition is demanding, and still extract the value that voice services will continue to generate as part of new charging regimes.
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