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Whitepaper: From LTE Network Launch to Monetization


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Whitepaper: From LTE Network Launch to Monetization

  1. 1. 01From LTE Network LaunchTo Monetization:5 Strategies For Mobile OperatorsBroadSoft Whitepaper9737 Washington Blvd., Suite 350, Gaithersburg, MD 20878 | | © 2013. BroadSoft Inc. All Rights Reserved
  2. 2. 02IntroductionWhile mobile operators across the globe are progressing at various speeds in launching Long Term Evolution (LTE)networks, carriers have recognized the business and customer benefits LTE can deliver – and have invested heavily inthis path as a result.After months of focus on building out the infrastructure and capacity to support LTE, and seeing handset manufacturersworking on beta versions of LTE-enabled mobile devices, we now see LTE networks being “lit” and the tangiblecommercialization of LTE products and services. For mobile operators, this means that the time is now to develop a pathfrom launch towards monetizing these LTE network investments in order to grow revenues, retain existing enterprisecustomers and consumers, and attract new ones.BroadSoft has identified 5 key strategies to help mobile operators rapidly and fully navigate a path towards monetizingtheir LTE network investments.1. Identify Unified Communications Services That Rapidly CreateNew Revenue Opportunities – And Deliver ThemUnified Communications (UC) services deliver seamless integration of telephony, video, messaging and collaboration withoffice-based applications such as email, and workforce applications such as CRM and ERP. And there is evidence thatenterprise demand for these unified communications is outpacing supply. A study by Techaisle, a global IT SMB marketresearch and industry analyst organization, reveals SMBs are finding and reporting shortages in cloud solutions, includingWeb conferencing, video conferencing, Hosted VoIP and audio conferencing.For mobile operators to monetize LTE network investments, it comes down to evaluating UC applications, launching thosethat will resonate with enterprise end-users and consumers, and then communicating the benefits of these applicationseffectively. LTE equips mobile operators with the opportunity to capitalize on the increasing demand for data-hungryapplications, which are challenging current mobile network architectures. The enterprise market in particular requires thebandwidth, reliability, mobility and quality of service not always available on today’s networks.Mobile operators can also look to Voice over LTE (VoLTE) as a game changer for how enterprises will accessvideoconferencing, Instant Messaging & Presence, Web collaboration, mobile and additional UC services. By leveragingthe all-IP environment that LTE provides, enterprises will be able to more easily and readily use a wide variety of mobileand mobilized UC applications, including those embedded in communications-enabled business processes.To learn more about how BroadSoft enables mobile operators to rapidly deliver UC services and mobility, clickhere.2. Ensure A Single User Experience For End-Users That Spans AllDevices And ApplicationsToday, an enterprise employee making a voice call on a personal iPhone, cannot – in the middle of that call – seamlesslyswitch to a video chat on his iPad, or to an IM exchange on an employer-issued laptop. The byproduct of being unable tointegrate disparate mobile applications, platforms and devices is an enterprise with communications silos for voice, video,text and collaboration.9737 Washington Blvd., Suite 350, Gaithersburg, MD 20878 | | © 2013. BroadSoft Inc. All Rights Reserved
  3. 3. 03Mobile operators, with ownership of the 4G LTE network, are strongly positioned to deliver a consistent, single experienceto enterprise end-users and consumers in a way that competitors cannot. In order to capitalize on this opportunity, it isimportant to leverage a platform that can deliver a user experience that includes:A single “identity” – End-users should be able to fully manage how they want to be contacted, which means having allof their contact information (call logs, IM contacts, etc.) available via the cloud across all user devices. This will enableusers to invite contacts to a videoconference on their iPad, or review call history on a desktop softphone client – in effect asingle identity that extends across voice, video, presence and collaboration.Access from any device – The proliferation of mobile devices should make communications easier, not more complex.Users should be able to access all of communications services from any device, including desk phone, desktop, laptop,mobile or tablet.High definition voice and video – A dynamic, consistent user experience should improve the quality of communicationswith High-Definition (HD) voice and video calling.To learn more about how the BroadSoft UC-One platform can support a single user experience for UC services, click here.3. Embrace Open APIs To Combat OTT ThreatOver-The-Top (OTT) industry players that can deliver compelling applications are eager to seize subscribers andrevenues from mobile operators, while the increasingly mobile enterprise workforce now demands a consumer-gradecommunications experience that matches what they have come to expect on their tablet, iPhone, Android and BlackBerrydevices. At the same time, mobile operators seek to balance a desire to retain ownership of the network with the benefitsthat come along with opening the network to third party application developers.Open APIs (Application Programming Interfaces) can be used to deliver beyond the current expectations for UnifiedCommunications, through an expanded vision that includes UC service integration with other business processapplications. For example, a mobile operator with a call center offering could leverage a third party developer Salesforceapplication that allows a call center to make and/or receive calls directly from the Salesforce webpage – in turnenabling enterprise customers to generate reports easily based on customer responses. More broadly, there are a fewconsiderations for weaving openness into your business approach:Do not underestimate “killer apps” – Killer apps can serve as a powerful revenue source, as consumers and enterpriseswill purchase a product to access a desired application that product enables. While mobile operators will continue tomake progress in application development, there remains a far greater possibility of identifying killer apps by expandingthe sphere to third party developers who are free to innovate and offer fresh perspectives through applications that solvecommunications challenges and enhance collaboration.Tread carefully in promoting developer apps – Put in place a structured process for managing and communicating withthird party developers. If a service provider favors a certain application, this can create friction among the third partydeveloper community, in turn causing some to become bitter and lose interest. Operate strategically, rather than withpartiality, in terms of which apps you encourage development on and promote.Choose the right partners – The path to fostering an environment conducive to open APIs extends beyond the serviceprovider itself. Fostering a successful open platform begins by working with technology partners that have a similar9737 Washington Blvd., Suite 350, Gaithersburg, MD 20878 | | © 2013. BroadSoft Inc. All Rights Reserved
  4. 4. 04mindset. Developers want to work with partners that offer open API capabilities, but more importantly, work with those thatallow them to evolve.Consider bundling – Among the top 50 free and paid apps, 77 percent link to back-end services, while only 23 percentare fully standalone apps1. The data points to an opportunity for service providers that develop a broad platform strategylinking third party apps enabled by open APIs to existing communications services and business process applications.Bundling can also have a significant impact on reducing churn. Today, an enterprise customer or consumer can takean application with them as they migrate from one service provider to another. By providing a platform for third partyapplications specific to a service provider’s network – particularly “killer apps” – these customers become stickier and lesslikely to shift to a competitor.To learn more about how the BroadSoft Xtended Application Marketplace allows mobile operators to leverage Open APIsand third party applications, click here.4. Take A Mobile-First ApproachIn a 2012 BroadSoft global survey, when asked to rank the Unified Communications services that would deliver thegreatest benefits, 69 percent of 700 “everyday” business user responses included mobile integration. As you identify UCservices and deliver solutions for the enterprise and consumer market, it is critical to take a “mobile first” approach so thatusers can easily access them on 4G LTE-enabled smartphones and tablet devices.The mobile-first approach is of particular importance as mobile operators migrate from 2G and 3G networks to 4G LTE,and seek to extend mobile UC services throughout this process. For practical reasons, the migration to LTE will not takeplace overnight, and thus it is important for MNOs to seek a solution that can support both legacy and new services overboth IMS/LTE and non-IMS networks. By “collapsing” support for multiple network types and services onto one platform,operators can cost effectively launch new LTE services when and as required.For these reasons, mobile capabilities must be architected in from day one, rather than building out a UC offering andthen trying to bolt-on mobile after the fact. By making significant investments in 4G LTE, mobile operators are wellpositioned to effectively ensure a carrier-grade quality of experience (QoE) for end users of High Definition (HD) voice andvideo, web conferencing, instant messaging and presence, and other broadband-intensive mobile applications that gobeyond the reliability of “best effort” services suited for consumers but inadequate for the rigors of enterprise use.To learn more about how BroadSoft’s mobile UC solutions enable a mobile-first approach, click here.5. Hone Go-To-Market StrategyDefining and crafting offers that will resonate with target markets is a final but critical piece in driving rapid adoption ofUC services. Mobile operators can leverage their market position by delivering market-ready offerings that package, priceand promote UC services in a way that will meet the communications needs and budgets of enterprises and consumers.The go-to-market strategy should incorporate product definition, market segmentation approaches, sales channel strategydevelopment, and sales campaigns.1 Willmott, Steven, “Why the App Economy isn’t the App Economy, but the API Economy,”, August 7, 20129737 Washington Blvd., Suite 350, Gaithersburg, MD 20878 | | © 2013. BroadSoft Inc. All Rights Reserved
  5. 5. 05A 2012 survey by research firm Informa finds that 70% of global operators believe 4G services should be launched now.But, in that report, Informa Senior Analyst Paul Lambert stated, “Because LTE technology, at the moment at least, isan extension of the mobile broadband experience, initial evidence suggests that mobile users aren’t prepared to pay asignificant premium for LTE access.”A successful go-to-market strategy must recognize the need to communicate the benefits of these applications toconsumers and enterprise end-users. Lambert went on to comment that when operators have successfully communicatedthe benefits of 4G offers, and end-users have had the opportunity to experience it, market reaction has been positive. Thisnot only increases enthusiasm for new applications, but also improves customer satisfaction – in turn reducing customerchurn. Dissatisfaction with their former mobile operator is consistently cited by mobile operators across the globe as thetop or second leading reason for customer churn.The analyst insights are a useful reminder to mobile operators to extend beyond marketing campaigns that focusexclusively on faster speeds in order to generate the business case for higher monthly charges. The most logical pathto moving beyond the speed message is communicating the benefits of Unified Communications services enabled byLTE, which opens the door to generating new, billable services that increase average-revenue-per-user, lead to highercustomer satisfaction and increases longevity. Finally, part of a go-to-market strategy must involve a strong focus on theenterprise. Mobile operators understand the consumer market, but the enterprise market remains a work in progress,partly due to the rapid transformation of a workforce becoming increasingly mobile and consumer-grade expectations foraccessing applications from both employer-provided mobile devices or a Bring-Your-Own-Device (BYOD) approach.To learn more about how BroadSoft Xcelerate program support a go-to-market strategy for delivering LTE-enabled UnifiedCommunications, click here.9737 Washington Blvd., Suite 350, Gaithersburg, MD 20878 | | © 2013. BroadSoft Inc. All Rights Reserved
  6. 6. 06Contact UsFor further information about BroadSoft, please contact your BroadSoft salesrepresentative or find us at www.broadsoft.comBroadSoft Inc.9737 Washingtonian Blvd.Suite 350Gaithersburg, MD 20878USATel: +1 (301) 977-9440General Inquiries: info@broadsoft.comWebsite: www.broadsoft.com9737 Washington Blvd., Suite 350, Gaithersburg, MD 20878 | | © 2013. BroadSoft Inc. All Rights Reserved