WAKEFIELD, Mass., Feb. 23, 2012 (GLOBE NEWSWIRE) -- New industry research probing the measures that communication service providers (CSPs) take to overcome mobile broadband challenges reveals notable differences between CSPs in emerging and developed markets regarding implementation of segmented data plans.
Surprisingly, CSPs in emerging markets are ahead of their counterparts in developed markets regarding implementation of certain kinds of advanced data plans.
Carried out by leading independent research organization Heavy Reading on behalf of Comverse®, (Nasdaq:CMVT), a global leader in BSS, mobile Internet, and value-added services, the study based its findings on an extensive survey of CSPs worldwide.
"CSPs from all regions express broad agreement about the nature and severity of the challenges they face, and all have put in place basic segmented plans," said Heavy Reading Senior Analyst Ari Banerjee, "Yet there are substantial differences between CSPs in emerging and developed markets regarding the measures they have already implemented and the steps they plan to put into practice in the near future to improve the user experience and boost revenues from mushrooming data usage."
Emerging Markets
Emerging markets lead in implementation of certain basic plans. For example, 50% of CSPs in emerging markets, compared to only 22% in developed markets, have implemented segmented plans based on subscription duration (e.g., 1 week for $10) and bandwidth-based plans (e.g., up to 512 Kpbs for $10, up to 1 Mbps for $15, etc.). Similarly, more than twice as many CSPs in emerging markets (38% compared to 16%) have already applied plans that encourage off-peak data consumption (e.g., lower data charges/higher quality/speed during off-peak hours).
In emerging markets with severely limited bandwidth availability and high rates of data uptake, steering usage to off-peak times can be essential to maintain quality of service. Moreover, the nature of these mostly prepaid emerging markets drives adoption of plans offering reasonably priced solutions with pay-as-you-go pricing options when usage thresholds are exceeded – to attract cost-conscious consumers and encourage usage.
Developed Markets
Conversely, CSPs in developed regions express higher interest in more advanced plans.
One example is M2M-based models, where data connection is included in the device price (e.g., an e-reader model where the data connection is included in the device price). Another example is the revenue-share over-the-top model, based on traffic prioritization or guaranteed QoS for OTT players. 50% of CSPs in developed regions already have or plan to have such plans this year, compared to only 33% of their emerging counterparts. Plans of this nature are closely attuned to the evolving needs of their sophisticated consumer and enterprise customers.
"The bottom line is that every CSP is determined to overcome its specific data challenges and realize revenue opportunities with effective measures," observed Amos Marom, Head of Comverse Mobile Internet Unit, "and foremost among those measures is the ability to deploy the data plans most appropriate for one's market. This is underscored by the finding that a majority of CSPs expect to change their rate plans and/or introduce new monetization policies as often as 2-3 times a year and more. Doing so requires a highly agile mobile Internet solution."
"Comverse Mobile Internet's Data Management & Monetization solution (DMM) has an established record of providing the power and flexibility that CSPs need to control, manage and monetize mobile broadband traffic according to their unique needs," said Marom. "Its advanced end-to-end PCRF/PCEF and BSS framework provides CSPs with quick-to-market agility and out-of-the-box support for a wide range of business and marketing use cases and scenarios in all types of markets around the world."
Click to download the Heavy Reading CSP survey, and for more information about Comverse Mobile Internet. To meet with Comverse at Mobile World Congress, contact yael.rohar@comverse.com.
About Heavy Reading
Heavy Reading is an independent research organization offering deep analysis of emerging telecom trends to network operators, technology suppliers, and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry's most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the $4 trillion global telecom industry.
As a telecom research arm of the Light Reading Communications Network, Heavy Reading contributes to the only integrated business information platform serving the global communications industry. www.heavyreading.com
About Comverse
Comverse is the world's leading provider of software and systems enabling converged billing and active customer management, mobile Internet, and value-added services. Comverse's extensive customer base spans more than 125 countries and covers over 450 communication service providers serving more than two billion subscribers. The company's innovative product portfolio enables communication service providers to unleash the value of the network for their customers by making their networks smarter. Comverse's solutions support flexible deployment models, including in-network, cloud, hosted and managed services. Comverse, ranked number 55 in PwC's Global 100 Software Leaders based on research by Pierre Audoin Consultants, is a subsidiary of Comverse Technology, Inc. (Nasdaq:CMVT). For more information, visit www.comverse.com.
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