Friday, November 11, 2011

Research Tells MNOs how to Increase Cash Return (Hint- Just Be Smarter!)

[posted on 11/11/11 11:11 JST]      
Research done by Chris Barraclough (pictured), MD and Chief Strategist, STL Partners/Telco 2.0 (commissioned by Tellabs) finds that "Mobile operators are missing a clear opportunity to double cash returns by following current network strategies .. Cash returns on invested capital for mobile operators today are typically 5.8%, in line with utility company stocks. The report concludes that mobile operators can more than double cash returns to 13.3% by delivering smart services. Smart services can improve operators’ share value and performance, turning today’s value stocks into tomorrow’s growth stocks."

"To achieve the 1.6% increase in cash returns enabled by moving to a smart network, the following elements are essential: [Items in bold are frequently discussed in this blog]
  • Efficient network configuration
  • Network security
  • Device management
  • Network sharing
  • WiFi offload
  • Traffic shaping
  • Multicast and content delivery networks (CDNs).
To increase cash returns by a further 5.9%, the following smart services must be introduced:
  • Delivering personalised and differentiated user services that leverage assets such as customer data
  • Making additional operator assets, such as location, presence, payments, identity and authentication, available to users and other service providers [see "Tekelec's PCRF Used with Verizon's "Turbo Button" API" - here
  • Implementing differentiated pricing and charging for users and upstream service providers based on customer segmentation and tiered service levels"

See more - "Mobile operators missing opportunity to double cash returns for investors" - here (press release) and here (report)

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