Operators must innovate to compensate for EU caps
“EU roaming premiums are on their way out and taking a further 5% of mobile operator’s revenues with them. And this on top of the fiercely competitive market conditions that have arisen over the last few years that have already squeezed the operators’ revenue streams.”
“In order to shore-up revenues and to compete effectively in the marketplace, operators need to offer consumers something new, something they value, and something unique to, and owned by, the operator’s brand. Internet brands, such as Google, already take this approach to add value for their users so they keep coming back. Operators must replicate this model and routinely offer customers new services, which will add value and strengthen customer loyalty to their 4G networks. Currently operators offer consumers basic commodity services, such as 4G roaming bundles. These offers have a limited shelf-life, and are easily replicated by other operators.
“Network and service innovation has been stifled for many years. Due to the deployment of closed, proprietary solutions, operators have become dependent on vendors to deliver technological innovation. The operators need to regain the ability to innovate and leverage it, rather than continue the current path of relying on others to do it for them. It’s actually not that difficult, but it requires a significant change of mind-set. If they want to just become bit-pipe providers, then carry-on! If, however, the operators want to continue to be regarded as the gold-standard for communication services then they need to start innovating and they need to do it fast.”
– Mark Windle, head of marketing, OpenCloud
