Mobile operators globally are observing significant growth in mobile data and bandwidth use. In fact, according to an article in The Hindu Business Line newspaper, just over 50% of the overall incremental wireless revenue in 2015 is expected to come from non-voice services. As such, operators need to offset the anticipated decline in voice service related revenue by offering new and innovative value-added services (VAS) to increase average revenue per user (ARPU). It is important to keep in mind that while in the past, SMS, MMS, and data access were typically considered VAS, over time those have increasingly become core services, and VAS is beginning to exclude those services.
To increase ARPU through offering VAS, operators could take one of two approaches. The first would be to partner
with a mobile content service provider to offer VAS. A recent example of this is the leading Indian mobile operator, Airtel, has collaborated with Singapore-based mobile content service provider Novosol to offer sports value added services. The second approach would be for a mobile operator to directly offer VAS. This obviously requires more effort and investment by the mobile operator, as the operator will be competing with experienced mobile content service providers for subscribers’ mindshare and ultimately, revenue share.
Value-added service providers are increasingly connecting to the mobile operator network via a messaging gateway since this gives the operator better control of the content. The operator can control subscriber access to the content, billing, etc. The operator is also expected to protect subscribers from infected VAS servers as well as any threats to its own network -- to enable high uptime, and ultimately, keep customer satisfaction rates high and churn rates low. Juniper Networks offers solutions for mobile network operators to consolidate multiple security functions and adapt to evolving threats while monetizing new mobile services. To learn more, read the Solution Brief.
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