I have found this article on a blog and totally agree with it.
As a mobile expert, I feel the Mobile revolution is going to burst in the next few years, and it’s time to invest on a global mobile billing system, as well as other mobile components…
Question: what’s the best way to get through an economic downturn? Answer: reduce total cost of ownership!
But actually, I think there might be an even better answer. By improving sales performance, responding better to competition with new services and more attractive offers, and retaining customers, service providers could ultimately profit a lot more than they would by simply reducing their total cost of ownership. In fact, when working out the return on investment for business and operational support systems (BSS/OSS) transformation projects, in addition to calculating total cost of ownership, service providers should also take efficiency enablers and growth engines into account. (No, it wasn’t a typo! There’s actually room for significant growth–even in an economic downturn).
So what are a few of the many ways that service providers can become more efficient and help their business to grow?
How about providing customers with personal lifestyle services, the hottest services on the market? Even in the current economic climate, voice and home video have become important commodities. Service providers should leverage these to sell content and increase their average revenue per unit (ARPU). And the pay out promises to be huge: according to Gartner, « The amount of money that mobile phone users worldwide spend on music received on mobile handsets will reach US$32.2 billion by 2010 ».
How about making sure you keep the customers and revenues that you already have? Churn rates per month range from 1-2% in developed markets and 3-4% in high-growth developing markets such as India and China. Bundling, for example, is just one of several ways of encouraging customers to « stick » by providing additional services with discounts and generating revenue for a longer period.
And how about tapping into the new competition to mobile music, such as streaming and full track downloads, that will come from device vendors, record companies and other solution providers? For example, Gartner predicts that the advertising revenue for « Protail video » (the segment between professionally-produced content and user-generated content, consisting of short clips), could potentially reach $1.5 billion by 2012.
Regardless of the economic slowdown, customers are willing to give up other spending in order to retain their lifestyle-enabling mobile services. But supporting these new services and the customer’s personal lifestyle rest on one thing: transforming business processes and systems–now.
I know it seems as though the best thing to do would be to delay transformation projects until the economic situation improves. But in fact the opposite is true: service providers considering this course of « non-action » will be likely to face business challenges from, and even revenue loss to competitors who are ready for this new generation era. According to Stratecast: « No doubt there are numerous hurdles to still overcome and there are a lot of uncertainties still to be defined, but 2009 should prove to be a good year for CSPs that stay the course and complete the transformation work already in process ».
The business case for transformation used to rest on calculating how much it would reduce total cost of ownership. But now, the new revenue streams resulting from BSS/OSS transformations will have more of an effect on profits than decreasing the total cost of ownership.
Question: what’s the best way to get through an economic downturn? Answer: increase your revenues!