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Customer data is the new growth category, according to a new study conducted by Mahindra Comviva and Ovum Consulting.
According to the study, operators need to adopt a customer-centric approach rather than a network-centric data optimization strategy because 20% of sites are congested at any point in time.
Due to the growth in mobile data, according to the study, the complexity of managing traffic has also intensified driven by greater use of bandwidth hungry applications and heightened customer expectations for an ever-higher Quality of Experience (QoE).
“Data is the new growth category for operators in emerging markets,” Madan G. Onkar, Vice President, Internet and Broadband Solutions, Mahindra Comviva, said in a release. “The ability to delight customers with a personalized, consistent experience and innovative offers is a critical services differentiator. Intelligent context-aware application of optimization techniques would enable operators to balance twin pressures of network and revenue growth.”
According to Ovum Research, global mobile broadband connections will cross 4.5 billion at a CAGR (Compound Annual Growth Rate) of 19% from 2012 to 2018 as demand for data connectivity from big- and small-screen devices continues. It also predicts that mobile broadband revenue will grow to about $278 billion in 2018 at a CAGR of 11%.
What’s more, the study highlights the benefits operators would reap by deploying intelligent media optimization to deliver an assured service experience and better monetize data traffic.
Current optimization techniques are applied principally as a blunt instrument for Capex containment. The broad application of optimization policies such as compression has negative fallout on revenue, especially for operators who predominantly extend volume based plans to customers. As an example, video optimization in a high-traffic location improves bandwidth utilization and overall browsing experience. However, the application of the same policy at congestion-free locations generates lower traffic volume, reducing the number of bytes and revenues per customers.
Data traffic is distributed unevenly on the network. An approximate 20% cell sites are congested at any point of time. The study posits a more intelligent approach to optimization is possible, one that can improve customer experience and service personalization based on real-time invocation of business rules and policies. Unlike conventional techniques, intelligent media optimization selectively applies performance-improvement techniques, based on a combination of variables including - cell traffic load, customer location, network type, application, device and ARPU profile.
Currently 20% of operators have invested in intelligent optimization tools. The report indicates 60% operators would deploy intelligent media optimization within the next 12 months, driven by the need to deliver a consistent QoE (Quality of Experience) and grow revenues. Intelligent optimization would generate new monetization opportunities for operators by enabling them to offer innovative, real-time QoE-based plans to customers.
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