BLOG: Next Generation Networks force CSP transformation

Andrew Milroy | May 15, 2012

Communications Service Providers need to understand how industries are being transformed by technology and work with businesses to enable them to benefit from these changes.

Often, they have previously paid the penalty for failing to turn off the data roaming feature. It is not uncommon for smartphone users to suffer severe bill shock when they receive a bill for over $1,000 after their first trip to another country with their smartphone. Most CSPs do not personalise data roaming plans or seek to offer a positive customer experience when the customer is travelling. If the cost of data roaming was reduced and CSPs were able to use information about their customers' whereabouts, they could offer a plan specifically for their individual customers when they travel. In most cases, this would increase ARPU for the CSP.

In countries where businesses and consumers have started to use high speed networks, we can get an idea of the kinds of new opportunities that will arise. CSP success in these markets is increasingly dependent on having a focus on applications rather than technology.

For example, CSPs might focus on offering a gaming experience, an immersive learning experience, a connected home experience , a video streaming experience or/and a telemedicine experience. Emphasis on speeds alone does not mean a lot to most people. Applications, customer experience, and supporting industry transformations will clearly be where new opportunities lie for CSPs. However, capitalising on these new opportunities requires a complete business model transformation for most CSPs.

Andrew Milroy is vice president, ICT practice, Asia Pacific Frost & Sullivan.

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