Monetizing the Service Provider Network Through End-to-End Intelligence
In today’s market, mobile service providers are challenged with building out their next-generation networks in a relatively flat revenue landscape where their network is being commoditized. These service providers are experiencing extraordinary, double-digit growth in terms of network traffic as consumers increasingly use their smartphones and connected devices to watch videos, browse the Internet, and interact with social media applications.
In contrast, mobile service providers are only realizing single-digit growth revenue. At the same time, over-the-top (OTT) services are collecting revenue from customers, while treating the service provider’s network as a commodity pipe.
"Using new architectural models enabled by 4G networks and advanced network intelligence will allow mobile service providers to realize new revenue streams."
Service providers struggling
As an increasing number of offerings are delivered as managed or cloud services, consuming ever-increasing amounts of bandwidth without additional revenue, many service providers are struggling to cope. In addition, the growing shift toward “open” technology platforms and interoperability threatens the competitive advantage of all players along the value chain.
Added to this nest of concerns looms regulatory uncertainty about decisions governments might make that could negatively impact mobile service providers’ businesses, which further increases this competitive environment. For instance, further restrictions on privacy, security, and network neutrality threaten to constrain targeted advertising, stymie efforts to build customer loyalty, and erode economic return on their networks.
LSI solutions for service providers
In this white paper we examine how mobile service operators can use new architectural models enabled by 4G networks and advanced network intelligence to address these challenges and realize new revenue streams. For example, our Axxia™ Communication Processor
family can support traffic classification to enable service providers to deliver differentiated QoS for various applications like video conferencing or Internet telephony. Mobile service providers can potentially charge application suppliers or application users a premium for certain classes of service.