fighting the arpu challenge

Fighting the ARPU Challenge

According to the research report “The Future Value of Voice and Messaging” published by Telco 2.0, telecom companies across the globe could lose up to

$172 Billion in revenue from voice and messaging services.

Source: http://www.telco2research.com/articles/20131126

$172 BillionRevenue Loss Over 5 Years

The report presents forecast for 9 markets including:

United States Canada France Germany Spain UK Italy Singapore Taiwan

The total decline is forecast between -

$92 Billion (-25%) and $172 Billion (-46%) on a $375 billion base over the next 5 years.

These predictions are a stark reminder of the issues that telcos continue to face, such as:

A weak macroeconomic environment Low profit margins due to intense competition Over-the-top (OTT) services cutting into voice & messaging revenues

How can telecom companies fight against the declining ARPU?

With high speed 4G LTE services being rolled out, mobile carriers are all set to pursue new revenue opportunities through:

Premium pricing Shared data plans Moving away from unlimited data subscriptions to tiered pricing

The much-feared OTT (over-the-top) threat can be tackled through value-added services and bundled offers to mitigate the impact of messaging apps such as WhatsApp.

The report by Telco 2.0 states that telcos

could save more than $80 billion.

They can achieve this by:

Providing customers their own OTT apps Capitalizing on new industry standards (RCS, WebRTC and VoLTE) Offering advanced enterprise communication services

Besides these, what companies must do is to ensure a frictionless customer experience to drive ARPU and reduce churn.

The latest cloud-based technologies for customer support make it possible to realize the revenue-rich potential of service interactions.

An intelligent SaaS platform such as Digital Service Cloud guides support agents to upsell or cross-sell, based on the asset inventory of customers and their usage behavior.

Digital Service Cloud empowers your company to:

Expand the portfolio to include in demand products beyond your current scope.

Sell subscription-based premium services to generate more revenue.