More than 70 percent of Network Operators Say SDM is Essential to Their Three-year Plans
October 4, 2010 - Openet
DUBLIN, Ireland – October 4th, 2010 – Openet, the most innovative provider of Subsriber Optimization Software to Tier 1 wireless, wireline and cable operators, today announces the results of a survey, which found that more than 70 percent of network operators consider the deployment of Subscriber Data Management (SDM) as an essential or important part of their three-year plans, according to the Subscriber Data Management Benchmark survey conducted by Light Reading.
Conducted in July 2010 and sponsored by Openet, the survey attracted 372 respondents from fixed, mobile or cable networks and was designed to evaluate network operator readiness to deploy SDM in their networks.
Though SDM awareness is clearly on the rise according to the survey, only 27.2 percent of all network operator respondents considered themselves working for a company that is an SDM readiness leader, meaning that the company has made significant progress in preparing to deploy subscriber data management in its networks.
Conversely, more than 43 percent of respondents indicated that their companies are well behind the leaders in terms of SDM readiness. Overall, responses to the survey identify that network operators perceive SDM functionality as being critical or important to their long-term service and network plans, but that they have not yet made the resource commitment to move forward with SDM. The consistent gap between perceived importance and action points to one logical conclusion: the majority of network operators are in danger of losing out to competitors in the race to develop more robust service portfolios and processes that will be enabled by SDM.
Accordingly, the majority of respondents indicated that while SDM would have a definite impact on their CAPEX budgets over the next three years, less than 25 percent said that impact would begin to be felt in 2010. Just over 56 percent of network operator respondents said they expected purchasing decisions to be made before 2012. The largest percentage of respondents said they expect purchasing decisions to be made in 2011.
“It’s clear that the network of tomorrow will be policy-driven to support services and event-based billing. As a result, SDM, which has been gaining steady momentum since 2008, is increasingly tied to policy control as users continue to migrate to more intelligent devices such as smartphones,” said Jim Hodges, senior analyst, Heavy Reading, part of the Light Reading Communications Network. “Once the network supports these capabilities, users have access to real-time multimedia services while carriers are able to achieve Telco App store status and enhance customer service and loyalty programs for high-value users.”
Openet has long recognized the need for a comprehensive SDM solution, which was realized in April 2010 with the rollout of the Company’s own Subscriber Data Management solution. The solution, which has been implemented by a major U.S. cable provider, delivers both subscriber and service consumption insights while also correlating real-time access to subscriber data by service delivery applications. With the information provided by Openet, operators are increasingly aware of subscriber behaviour and able to deliver the personalized services demanded by consumers.
“Operators have long recognized that their subscriber data is among their most valuable of assets and SDM architectures enable to bring those assets into play. Regardless of where they start from, network operators need to make sure that their choice of technology and architectures will support future needs for subscriber intelligence and service personalization,” said Michael Manzo, Chief Marketing Officer at Openet. “The current approach for SDM reflects the operator’s focus, that is, the difference in business priorities and the specific needs for the types of services they are rolling out. Many Communications Service Providers are looking at personalized services, closely tied to Policy Control applications. In the MSO/Cable space, we are seeing operators start with the analytics, like audience measurement.”
For more information and results from the survey conducted by Openet and Light Reading, please visit http://18.104.22.168/landing/whitepaper/sdm-benchmark/index_redirect.html?docid=198&caid=70160000000E7Ji&cname=2010-PDF-Website-Form&source=Lead_Gen_Campaigns.
Openet is the most innovative provider of Subscriber Optimization Software (SOS) to Tier 1 telecommunications operators, cable operators and media service providers. To succeed, today’s operators must know their subscribers, deploy innovative business models and control the allocation of network resources. Openet's offerings are engineered to attract subscribers and provide an optimal experience, minimize the cost to serve them and maximize revenue—making the most of every subscriber. With customers across the globe, Openet is meeting the needs of operators worldwide such as Vodafone, Orange, AT&T and Verizon. For more information, please visit www.openet.com.