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How operators are leveraging LTE to drive innovations and revenues

By June 18, 2014 No Comments

Comparing LTE and 3G

Furthermore, operators have been innovating, with new offers and business models, to better capitalize on the demand, speed and capacity of LTE. All of these usually mean more revenue opportunities for operators. 

In fact, a study from the GSMA has shown that the average revenue per user (ARPU) from LTE users tend to be higher than the ARPU from non LTE users. In developing markets, operators have found that ARPU from LTE users can be 7 to 20 times higher than non-LTE users. In developed markets, operators have found that LTE can generate 10 to 40% higher ARPU.

Overall, LTE is not only the “fastest developing mobile system technology ever” as stated by the GSA, LTE is also driving innovation and revenues for operators. However, operators require the relevant business support systems (BSS) to rapidly innovate and make the most of the LTE opportunity. The following statistics sum up the key BSS requirements for LTE service innovation and faster time to market according to mobile operators worldwide.

In a recent survey by telecoms.com, 80% of operators stated that LTE is driving operators to move towards BSS solutions that are real-time, with 85% saying that billing systems need to evolve to become real-time. In another Openet survey, 64% of operators stated that IN pre-paid charging systems were designed for circuit-switched voice services, with 70% planning to replace them by real-time, online charging systems within the next 4 years.

In terms of innovation, 73% of operators view integrated policy and real-time charging/OCS (PCC) and the extension of PCC to the device (61%) using a secure interaction gateway as key in enabling innovation. Finally, a centralised offer catalog that allows operators to create and manage offers in a central place appears to be the top capability to accelerate time to market, according to 79% of operators.

In order to increase revenues and customer satisfaction mobile operators are constantly looking at innovative ways to capitalize on their LTE investments and require real-time and flexible BSS solutions to support their goals.

To find out more and discover 10 of the top service innovations that LTE operators have launched to increase revenues, download this guidebook