Avoiding Data Commoditization: The Need for Smarter Customer Engagement

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Avoiding Data Commoditization: The Need for Smarter Customer Engagement By: Martin Morgan     Are some mobile operators heading down the road of their businesses becoming commodities where the only real differentiator, in the eyes of the customers, is price? Voice and text services, for so long the mainstay of their business, are now commoditized and data could well be heading the same way. Competition from OTT players offering free voice and messaging services, the roll out of free Wi-Fi services and the emergence of Wi-Fi first MVNOs means that, despite the contraction in numbers of mobile service providers, the mobile market is at its most competitive since it emerged over 30 years ago. In most markets mobile penetration has peaked and operators are pushing for existing customers to use more data and encourage data adoption. But in many cases large numbers of customers use Wi-Fi for data connectivity. They then use OTT apps to communicate. This disintermediates the mobile operator. The future for operators who pursue a traditional telecoms business model of only generating revenue from a monthly bundle of voice, text, and a volume of data may not be too bright. Not only could some operators be forced to play the role of dumb pipe, for an increasing number of pre-paid customers, the operator won't even serve that role with data connectivity coming from free Wi-Fi. Continue reading this article in Pipeline... Download the full article in PDF format Download the Whitepaper: Top 10 LTE Service Innovations     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.

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