Evolve to a More Stable Business Model and Create New Revenue Opportunities

Next Generation Communications Blog

Evolve to a More Stable Business Model and Create New Revenue Opportunities

Today's Internet has evolved into a real resource - perhaps the greatest resource - for business and personal interaction with other individuals, communities, businesses, and information portals. It is typically the first place people look to for information, and the networks that provide access to that information and content are the primary vehicle for all communications today.
 
The applications that enable these various modes of interactivity, whether person-to-person communication, downloading content, online shopping, or merely gathering information are becoming more complex and more personalized to meet particular needs of each individual user. They are able to do that only by leveraging user data available through network providers.
 
However, the traditional relationship between network providers and content and application providers, where the network is merely a physical resource for delivering content and applications, has resulted in an unstable business model. The fact is that neither party has the resources to fully provide enhanced services to users, but neither has access to all the resources they need for developing a viable long-term business model.
 
Network providers are not being compensated for providing the bandwidth to deliver applications, and service and application providers are not being given access to full network capabilities that would increase the value of their services (i.e., location, presence, QoS, security). The challenge, as the demand for applications continues to grow - and features directly tied to these network capabilities with it - is for operators and providers to agree on a business model that benefits both and allows them to deliver optimized services to their users.
 
Naturally, any mutually beneficial strategy will be focused on delivering an improved user experience and a keen understanding of what services users want, how do they want them delivered, which ones will they pay for, and, perhaps most importantly for long-term success, which ones will they be willing to provide profile information for. Those operators and providers that can collaborate to determine these factors will be on the front lines for successful new product launches.
 
Alcatel-Lucent's application enablement ideal is built on enabling these kinds of business models and delivering these key services. On the network operator side, it focuses on the need to evolve to a high leverage, all-IP network, which can deliver these services and collect subscriber data - and then recycle that data for delivering even greater value to users. 
 
These new high leverage networks will allow operators and their provider and developer partners to collaborate in a much more meaningful fashion, where the best capabilities of both sides are highlighted to present a more stable business model with new revenue potential. A new, significantly larger market opportunity can be opened up, network providers can open their resources to their partner community in a controlled way, such that applications and services can be optimized and delivered to each unique user anywhere, anytime, on any device.
 
It presents a new opportunity for operators and providers, where each can showcase their strengths, and leverage each other's assets to enrich the user experience and drive new revenue streams.
 
For the content provider and application developer, it creates a targeted audience for services. For network providers, it means an offset to network investment through advertising and network access and resources.
 
By evolving to a high leverage network, network operators will quickly be able to build new business models with partners via a network that is:
 
  • Multi-service, to reduce cost and enable both fixed and mobile services that are transparent to the network
  • Available at anytime, anywhere, and on any device
  • Application- and service-aware to allow contextual, personalized delivery of content and services
  • Scalable and flexible in both directions to provide high QoE at all times without increased cost
  • Open to developers and for service providers to leverage

By embracing the application enablement ideal, and a high leverage network, operators will put themselves, and their partners, well on the path to a sustainable, mutually beneficial business model for the next generation communications environment. And ultimately, both will benefit from the ability to combine to deliver new, innovative, and rich set of applications to the user community.
 
Read more about application enablement in Alcatel-Lucent's white paper, Application Enablement, Delivering a trusted Web experience to increase revenue.


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