Saturday, October 3, 2015

Digicel: DPI is a Catalyst for VAS Revenues Increase

The Digicel Group (operating communication services in 31 countries to 13.6 million subscribers) has filed for an IPO recently with the SEC (here). The group is a Sandvine customer ("How does DigiCel Use Sandvine?" here and here) and explains in the F-1 form the benefits of DPI:

"Mobile Data and VAS

..VAS is an increasingly important portion of Digicel’s revenue, rising from 23.0% of its total mobile service revenue in the year ended March 31, 2013 to 31.2% in the year ended March 31, 2015 and 33.9% in the three months ended June 30, 2015. The increase in VAS has tracked an increase in availability of affordable smartphones, including Digicel-branded Android devices

.. An important catalyst for the increase in VAS has been Digicel’s innovative product and service offerings which include:

  • Service-based packages: Digicel’s data offers have evolved from volume based pricing to charging by service. Digicel’s deep packet inspection platform allows it to price plans based on the specific service that subscribers are consuming as opposed to volume-based pricing.

    Digicel is able to offer subscribers data plans that provide access only to one particular site, such as Facebook or Instagram. This capability has allowed Digicel to launch new plans across markets with a range of data allowances along with access to particular websites.

    This makes Digicel’s plans more attractive to subscribers because they can more easily understand what they are getting, and it allows Digicel to differentiate its plans from competitors.
  • Free access to Wikipedia [here]: Digicel allows all Digicel subscribers free access to this widely-known source of information on the Internet. Every time a subscriber accesses Wikipedia on the Digicel network, there is a small banner at the top of the page that tells the subscriber that access to the page is provided free of charge courtesy of Digicel.

    Digicel believes this is a strong marketing tool and it also benefits Digicel’s subscribers in terms of free access to this information. This represents an opportunity to illustrate to Digicel’s subscribers the value of the Internet by showcasing the type of services that subscribers can access with an Internet subscription and is designed to encourage Internet penetration.

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