Download - Fighting the ARPU Challenge
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Fighting the ARPU Challenge
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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
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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.
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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
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How can telecom companies fight against the declining ARPU?
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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
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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.
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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
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Besides these, what companies must do is to ensure a frictionless customer experience to drive ARPU and reduce churn.
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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.
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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.