Mobile operators can increase global data revenues by $47 billion by understanding, in real-time, customer context and providing real-time contextual offers. This is one of the main findings from a survey of 87 mobile operators carried out in October 2014. Another finding is that two thirds of the operators surveyed currently do not have the ability to provide real-time contextual offers. In this competitive market, the ability to unlock new revenues, build customer loyalty and increase profitability are the key goals for mobile operators around the world. This operator survey report analyzes the revenue impact of upsell offers triggered by the real-time customer context (e.g. usage information, application access, location, profile etc) and sent in real-time to the customer device. As an example, a customer with no data plan trying to access Facebook is automatically sent a one-day application pass offer with unlimited access to Facebook.

1. © Copyright Openet Telecom, 2013
The Revenue Impact
of Real-time Contextual Offers
Operator Survey

2. Operator Survey: The Revenue Impact of Real-Time Contextual Offers
2 © Copyright Openet Telecom, 2014
INDEX
INTRODUCTION: THE $47 BILLION OPPORTUNITY 3
THE IMPORTANCE OF REAL-TIME CONTEXTUAL OFFERS IN INCREASING DATA REVENUES 4
Successful Strategies to Increase Data Revenues 4
Operators’ Plans to Introduce Real-Time Contextual Offers 5
Type of Offers Operators Want to Market in Real-Time 6
INCREASING REVENUES WHILST REDUCING COSTS 7
Unlocking $47 Billion of Data Revenue 7
The Impact on Loyalty, Net Promotor Score and Customer Care Costs 8
TIME TO MARKET MATTERS 9
Centralizing Offers to Reduce Time to Market 9
Real-Time Reporting to Rapidly Refine Offers 10
CONCLUSION 11
ABOUT OPENET 11

3. Operator Survey: The Revenue Impact of Real-Time Contextual Offers
3 © Copyright Openet Telecom, 2014
INTRODUCTION: THE $47 BILLION OPPORTUNITY
Mobile operators can increase global data revenues by $47 billion by understanding,
in real-time, customer context and providing real-time contextual offers. This is one of
the main findings from a survey of 87 mobile operators carried out in October 2014.
Another finding is that two thirds of the operators surveyed currently do not have the
ability to provide real-time contextual offers.
In this competitive market, the ability to unlock new revenues, build customer loyalty
and increase profitability are the key goals for mobile operators around the world. This
operator survey report analyzes the revenue impact of upsell offers triggered by the
real-time customer context (e.g. usage information, application access, location, profile
etc) and sent in real-time to the customer device. As an example, a customer with no
data plan trying to access Facebook is automatically sent a one day application pass
offer with unlimited access to Facebook.
Below a graphical summary of the key survey findings:

4. Operator Survey: The Revenue Impact of Real-Time Contextual Offers
4 © Copyright Openet Telecom, 2014
Enabling real-time contextual
offers to be sent, purchased
and activated on the customer
device
Increase upsell opportunities and
uptake/sales conversion rates
Reduce churn
Increase customer willingness
to recommend their services
Create and launch
more offers faster
Continuously refine offers
THE IMPORTANCE OF REAL-TIME CONTEXTUAL OFFERS
IN INCREASING DATA REVENUES
Successful Strategies to Increase Data Revenues
When asked about how to increase data revenues, operators said enabling real-time
contextual offers is one of the most important strategies an operator can implement.
The largest proportion of the operators surveyed, 89.5%, think that enabling real-
time contextual offers to be sent, purchased and activated on the customer devices is
important in increasing data revenues. (Fig. 1)
This is consistent with the fact that one of the top three most important factors for data
revenue increase, according to 86% of operators, is to increase upsell opportunities and
uptake rates. This is also the main benefit that real-time contextual offers bring, according
to 92% of operators. It is also consistent with the second most important factor for 87% of
operators, which is to create and launch more offers faster. The ability to speed up offer
development and launch is indeed a key requirement to increase upsell opportunities
and implement an effective upsell strategy based on real-time contextual offers.
The other factors enabling operators to increase data revenues are reducing churn,
increasing customers’ willingness to recommend their services (net promoter score) and
continuously refining offers.
Figure 1:
To what extent are the following important in
enabling operators to increase data revenues:
1.2%
Very Important
Important
Neutral
Unimportant
Very Unimportant
50%
3.5%
6%
5.7%
4.6%
3.5%
4.7%
39.5%
5.8%
1.2%
2.4%
33.3%
53.6%
4.8%
35.6%
50.6%
8%
43.7%
36.8%
11.5%
36%
41.9%
15.1%
36%
39.5%
18.6%
3.4%
3.5%
1.2%

5. Operator Survey: The Revenue Impact of Real-Time Contextual Offers
5 © Copyright Openet Telecom, 2014
Operators’ Plans to Introduce Real-Time Contextual Offers
77% of operators acknowledge that without the capability to identify in real-time the
relevant customer context or behaviours to trigger the most relevant offers, they are
missing revenue opportunities. However two thirds of the operators don’t yet have this
capability.
The vast majority of operators currently send upsell offers based on pre-planned
schedules (43%) or off-line processing based on historic customer activity (53%). Only
34% of operators are currently able to send real-time contextual offers to their customers.
However, this figure is due to increase as overall 48% of operators are planning to deploy
this capability within the next two years with an additional 10% planning to do so in the
future.
Figure 2:
What is the status of the following: Real-time offers triggered by real-time
context information such as usage, application access, location, etc
32%
34%
16%
10%
8%
Currently Available
Planned for 2015
Planned for 2016
Planned for 2017 and beyond
Not Planned

6. Operator Survey: The Revenue Impact of Real-Time Contextual Offers
6 © Copyright Openet Telecom, 2014
Type of Offers Operators Want to Market in Real-Time
Operators also revealed the type of offers they think are most suited for upsell as real-
time contextual offers (Fig 3). Simple data volume upsell is the most popular choice for
85% of operators. Next come data roaming passes selected by 81% of the respondents;
they are data packages based on a combination of data volume, defined time period and
permitted countries and are sold to customers by their home network operator for use
when roaming (e.g. 100 MB for 1 day for use in Europe). Content packages (e.g. music,
TV) follow in third position and were selected by 69% of the respondents as well suited
for real-time contextual upsell. About two thirds of operators then selected data passes
offering a certain amount of data volume to use for a defined time period (e.g. 100 MB
for 1 day), application service passes allowing subscribers to use specified applications
for a defined time period (e.g. unlimited Facebook access for 1 day) and high speed
passes enabling operators to upsell speed whenever required. Shared data packages
were selected by only 48% of the respondents and appear to be the least popular type of
offers for real-time contextual upsell in operators’ view.
Figure 3:
Most Suitable Offers for Real-Time Contextual Upsell

7. Operator Survey: The Revenue Impact of Real-Time Contextual Offers
7 © Copyright Openet Telecom, 2014
INCREASING REVENUES WHILST REDUCING COSTS
Unlocking $47 Billion of Data Revenue
Operators acknowledge the importance of real-time contextual upsell but they also
further reveal the revenue impact of such a strategy. 92% of operators said that real-time
contextual offers would enable operators to increase upsell opportunities and uptake
rates. This is not surprising as customers can then receive the most relevant offers at the
most opportune time.
On average, operators’ current uptake rate when upselling offers directly to the customer
device is estimated at 8%. If operators had the ability to send real-time contextual offers,
they estimate that they could achieve an average offer uptake of 14% (Fig. 4). This means
operators can increase their uptake rate by 75% on average by adopting an upsell
strategy based on real-time contextual offers.
84% of operators expect data usage and data revenues to increase as a result of
delivering real-time contextual offers. They estimate that data revenues would increase
by 15% on average by sending real-time contextual offers that customers can immediately
purchase and activate on their device (Fig. 5). On a global scale, this means an additional
$47 billion in mobile data revenues per annum for operators to unlock, knowing that
mobile service revenue was $264 billion in the first quarter of 2014, with data contributing
31%*, with a forecast annual service revenue of $1.01 trillion for 2014.
Operators also estimate that data usage would increase by 16% on average. Several
factors contribute to this. For instance, 85% of the respondents said real-time contextual
upsell enables operators to better encourage customers to try out new services. 73% also
said it helps to better target travellers with data roaming packages.
Moreover, 81% of the operators surveyed view real-time contextual upsell as an effective
strategy to target users with no data plan and motivate data package purchase. This will
then enable operators to extend their mobile data user base which they estimate would
increase by 12.8% on average (Fig. 5).
Figure 4:
Offer Uptake Rate can Increase by 75% with Real-Time Contextual Offers
When upselling offers directly to the customer
device, what is the current typical uptake rate?
What would the uptake rate be with real-
time contextual offers, in your opinion?
* ABI Research, 2014

8. Operator Survey: The Revenue Impact of Real-Time Contextual Offers
8 © Copyright Openet Telecom, 2014
The Impact on Loyalty, Net Promotor Score & Customer Care Costs
Another benefit of enabling real-time contextual offers that can be purchased and
activated on the customer device relates to customer loyalty. Timely relevant offers
with the flexibility to “buy now” and have the service delivered immediately not only
secures the revenue for operators but also keeps customers happy. 71% of the operators
surveyed expect customer satisfaction and willingness to recommend their services
(net promoter score or NPS), to increase as a result. This would help build loyalty and
operators estimate that churn would be reduced by 8.5%. Increased NPS can also drive
down the cost of customer acquisition.
With this approach, the majority of operators, 58%, also expect customer care and sales
cost to be reduced by an average of 11%; however 29% of the respondents remained
neutral on the subject.
Overall, the capability to trigger real-time contextual offers that can be purchased and
activated on the customer devices enables operators to unlock new revenues and
increase service profitability.
INCREASEREDUCE
Figure 5:
Real-Time Contextual Offers: Impact Projected by Operators

9. Operator Survey: The Revenue Impact of Real-Time Contextual Offers
9 © Copyright Openet Telecom, 2014
TIME TO MARKET MATTERS
Enabling an effective upsell strategy based on real-time contextual offers requires more
tailored offers to be rapidly created, launched and updated as required. In other words,
the time to market, from offer definition to market launch, is important.
87% of operators acknowledge that it is one of the most important factors in enabling
them to increase data revenues (Fig. 1). 77% said that the time to market for new offers
is currently too long and operators are missing revenue opportunities. Furthermore, 72%
think that most operators are currently too slow to launch new offerings in response to
competitors’ offerings, which can impact customer loyalty and market share.
Centralizing Offers Reduces Time to Market by Half
According to 75% of the operators surveyed, the capability to create, manage and update
offers from one central place would reduce time to market by half (Fig. 6). The typical time
to market being 15.3 weeks on average, it would be reduced to 7.2 by centralizing offer
management; this represents a 53% reduction in time to market.
This is consistent with their response when asked how long it would take to amend
existing offers if offers were managed in one central place. Operators estimated that
the time to do so would be reduced from an average of 9.6 weeks to 4.7 weeks, a
51% reduction. Whilst centralizing offers appears to be a key requirement, only 35% of
operators have this in place; however more are planning to centralize offers in the next
few years with only 13% not planning to do so (Fig. 7).
Figure 6:
Impact of Centralizing Offers on Time to Market (Averages)

10. Operator Survey: The Revenue Impact of Real-Time Contextual Offers
10 © Copyright Openet Telecom, 2014
Real-time Reporting to Rapidly Refine Offers
76% of operators said the ability to continuously refine offers plays a key role in enabling
them to increase data revenues. 90% of them then stated that real-time reporting of
offer effectiveness was important to rapidly refine offers. This is key for operators to
more successfully meet and monetize the customer needs. However, only 21% of the
respondents currently have such real-time reporting available, with an additional 58%
planning to deploy this capability in the next few years (Fig. 7).
Currently Available
Planned for 2015
Planned for 2016
Planned for 2017 and beyond
Not Planned
35%
22%
20%
10%
13%
35%
21%
11%
12%
21%
A central place from which all offers
are created, managed and launched
The capability to get real-time
reporting on offer effectiveness
Figure 7:
What is the status of the following:

11. Operator Survey: The Revenue Impact of Real-Time Contextual Offers
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CONCLUSION
Mobile operators expect real-time contextual offers not only to drive new data revenues
and more data users but also to reduce costs. They project to generate an additional
$47 billion of mobile data revenues globally with real-time contextual offers. By further
enabling customers to purchase and activate the offers on their devices, operators also
anticipate a decrease in customer service and sales costs. This approach is expected to
increase customer satisfaction and operators expect to reduce churn and increase their
customer willingness to recommend their services as a result.
Enabling an effective upsell strategy based on real-time contextual offers requires a fast
time to market to enable the rapid creation and launch of more tailored offers. Operators
estimate that centralizing offer management would reduce the time to market by about
half. The ability to rapidly refine offers through real-time reporting of offer effectiveness
is also rated as important by most operators in order to more successfully meet and
monetize the customer needs.
Enabling real-time contextual offers can transform the relationship between operators
and customers, with operators being able to pro-actively respond to the customer needs
in real-time. This may well be one of the most effective strategies for operators to make
the most of their customer base and maximize the customer lifetime value.
ABOUT OPENET
Openet is the leading independent supplier of real-time BSS (business support
systems) to communication service providers. Openet software ensures that more
than 600 million mobile telecoms users around the world enjoy the best network and
data experience while enabling operators to monetize data use in ‘real-time’. Since its
foundation in 1999, Openet has constantly been at the forefront of telecoms software
development and innovation. This is characterized by its open platform, domain
experience and engineering expertise. Its success is personified by the many long-
term relationships it has fostered with the largest, most progressive, and demanding
operators across the globe.
For more information, please visit www.openet.com