User experience - Taming the Data Tiger
Operators are seeing a dramatic increase in data traffic - but now need to operate
smart controls to protect their revenues and the user experience, says Merav Bahat
The growing adoption of Apple's iPhone, and the G1 Google phone combined with flat-rate data plans is creating a dramatic increase in mobile Internet traffic. This increased mobile data usage could eventually suffocate network bandwidth and clog wireless networks.
According to a Forrester Research report released last month, more than a third of consumers in Western Europe will access Internet from their mobile phones by 2014.
In addition to increasing the number of users, each subscriber will be using bandwidth hungry services such mobile video. The Cisco VNI Forecast predicts that Western Europe will have the most mobile video traffic of all regions in 2013 accounting for 73 percent of mobile data traffic.
Eroding profitability with increased usage and flat rates will put financial pressure on operators. At the same time they will be faced with new competition from internet content and VoIP players such as Skype, Google, and Apple.
There is a way that mobile operators can ride the tsunami and come out ahead. By providing subscribers with mobile Internet services that improve the customerexperience through personalised information, better content delivery, and the benefit of safe browsing, operators can strengthen their brand, increase customer loyalty and result in more efficient use of network resources.
Don't block, manage
Mobile data traffic is expected to double every year through 2013, according to Cisco Systems. This boost in traffic is eating up bandwidth and providing a threat to everyone's user experience.
Current methods of preventing heavy traffic, such as blocking and throttling, are alienating subscribers. A more effective solution is to implement traffic management systems that notify subscribers when they are near usage quotas, provide a temporary bandwidth boost, offer a service extension, or enable subscribers to set personalised usage caps that can be updated in real-time. This way, users are in control not only of their quality of experience, but also of their expenses.
Already deployed at Russia's CDMA operator, Skylink, subscribers in Moscow can select pricing plans based on the applications they use and the time of day. For example subscribers can choose access to unlimited social networks, email only at night, receive news in the morning and mobile video after work hours. Differentiated pricing reduces overall subscriber prices, thereby increasing user adoption while resulting in more fair usage, by enabling subscribers to pay for the bandwidth they want when they need it.
In addition to choosing which content is accessed and when, users that have immediate visibility to their expenses can avoid sticker shock, and they can decide to add quotas in real time based on their financial limits providing real time flexibility. The subscriber has more control over the mobile Internet service and network resources are more efficiently allocated based on need and a user's willingness and ability to pay.
By offering flexible pricing plans which appeal to the needs of different segments of users, operators can maximize both their profits and network resources. Customer loyalty is also strengthened due to increased user interaction as interactive account management empowers subscribers to take charge of their service plans.
Advise, don't advertise
By enabling subscribers to opt in for downloading selected content, operators can advise and not advertise, making targeted promotions a welcomed service. For example, users that are browsing for information on their favorite band can receive recommendations to download the band's latest music video or buy the latest wallpaper from the operator's portal using convenient payment methods, due to the unique billing relationship with their operator.
Users that chose to have targeted content delivered to their device benefit from quicker personalised navigation and more relevant offers. In addition content providers benefit since personalised content is more likely to be shared with friends, especially when subscribers are also using social media on the mobile.
The key to delivering mobile content is to make discovery un-intrusive. A simple icon appearing on the mobile phone screen can be clicked when the user chooses, eliminating the practice of sending unsolicited SMS or MMS messages that can be considered disruptive or even annoying and can result in automatic deletion.
By creating a highly personalised content environment that is automatically updated and easily shared, operators are providing a valuable service to subscribers that adds value and brand differentiation. By giving subscribers control over which content they receive, and when and how they access it, the mobile experience becomes highly personalised and satisfying that can build long lasting customer loyalty.
Content Control
With the average age of new subscribers dropping to seven years old, there is concern that the mobile Internet enables young subscribers to browse websites and exchange user-generated video and images without parental supervision. Recognizing the risk, a total of 26 mobile operators and content providers servicing 96% of the EU mobile customers signed the GSMA framework for a safer mobile Internet.
In addition, to protect their brand and build customer loyalty, mobile operators such as T-Mobile and Telefónica Movistar have introduced advanced content control solutions that ensure safe browsing.
Content control applications include an easy-to-use, web-based application, enabling parents to control and monitor web content access for each of their children, including customizing hours and content type and controlling access after bedtime or during school hours. In addition, parents can choose to grant or block access to certain applications, such as chat, video, and image exchange. By providing sophisticated content control solutions, parents have more information on where their children spend time online, encouraging an open dialogue between parents and their children.
Parents can also choose to monitor Internet behavior by receiving immediate notification if access is attempted to dangerous content categories such as suicide, drugs, pornography, or anorexia. For young children, parents can create a "walled garden" or protected environment by only giving them access to a limited number of age-appropriate sites.
These new user customization features transform content control from a basic black list service to a revenue-generating solution and a key differentiator for mobile operators, positioning them as friendly and socially responsible..
Smarter pipes = better service
Increased usage of internet-centric phones, more multimedia rich applications, and the increase in sharing of data using mobile devices provides a threat to existing capacity and operator profitability.
By operators using technology to enable subscribers to control their own service levels, type of content they receive, amount of bandwidth they need, and what they are willing to pay they are demonstrating a customer centric strategy. Having the ability to build, monitor, and fund their own service puts the subscriber in the driver's seat and makes the operator a service partner which is important strategy for operators asserting their position in the value chain.
The operator is thus in a unique position to provide differentiating mobile Internet services, and to use them as an incentive to build lasting customer loyalty. Once subscribers become aware that they can receive from their operators more varied information, better content delivery, and the benefit of safe browsing, they will welcome smart pipes that make browsing the mobile Internet a pleasurable and worry-free experience.
About the author:
Merav Bahat is Vice President of Marketing, Flash Networks
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