Comverse Report Finds Emerging Markets Ahead of Developed Markets in Launch of Certain Kinds of Data Plans
February 23 2012 - 11:00AM
New industry research probing the measures that communication
service providers (CSPs) take to overcome mobile broadband
challenges reveals notable differences between CSPs in emerging and
developed markets regarding implementation of segmented data plans.
Surprisingly, CSPs in emerging markets are ahead of their
counterparts in developed markets regarding implementation of
certain kinds of advanced data plans.
Carried out by leading independent research organization Heavy
Reading on behalf of Comverse®, (Nasdaq:CMVT), a global leader in
BSS, mobile Internet, and value-added services, the study based its
findings on an extensive survey of CSPs worldwide.
"CSPs from all regions express broad agreement about the nature
and severity of the challenges they face, and all have put in place
basic segmented plans," said Heavy Reading Senior Analyst Ari
Banerjee, "Yet there are substantial differences between CSPs in
emerging and developed markets regarding the measures they have
already implemented and the steps they plan to put into practice in
the near future to improve the user experience and boost revenues
from mushrooming data usage."
Emerging Markets
Emerging markets lead in implementation of certain basic plans.
For example, 50% of CSPs in emerging markets, compared to only 22%
in developed markets, have implemented segmented plans based on
subscription duration (e.g., 1 week for $10) and bandwidth-based
plans (e.g., up to 512 Kpbs for $10, up to 1 Mbps for $15, etc.).
Similarly, more than twice as many CSPs in emerging markets (38%
compared to 16%) have already applied plans that encourage off-peak
data consumption (e.g., lower data charges/higher quality/speed
during off-peak hours).
In emerging markets with severely limited bandwidth availability
and high rates of data uptake, steering usage to off-peak times can
be essential to maintain quality of service. Moreover, the nature
of these mostly prepaid emerging markets drives adoption of plans
offering reasonably priced solutions with pay-as-you-go pricing
options when usage thresholds are exceeded – to attract
cost-conscious consumers and encourage usage.
Developed Markets
Conversely, CSPs in developed regions express higher interest in
more advanced plans.
One example is M2M-based models, where data connection is
included in the device price (e.g., an e-reader model where the
data connection is included in the device price). Another example
is the revenue-share over-the-top model, based on traffic
prioritization or guaranteed QoS for OTT players. 50% of CSPs in
developed regions already have or plan to have such plans this
year, compared to only 33% of their emerging counterparts. Plans of
this nature are closely attuned to the evolving needs of their
sophisticated consumer and enterprise customers.
"The bottom line is that every CSP is determined to overcome its
specific data challenges and realize revenue opportunities with
effective measures," observed Amos Marom, Head of Comverse Mobile
Internet Unit, "and foremost among those measures is the ability to
deploy the data plans most appropriate for one's market. This is
underscored by the finding that a majority of CSPs expect to change
their rate plans and/or introduce new monetization policies as
often as 2-3 times a year and more. Doing so requires a highly
agile mobile Internet solution."
"Comverse Mobile Internet's Data Management & Monetization
solution (DMM) has an established record of providing the power and
flexibility that CSPs need to control, manage and monetize mobile
broadband traffic according to their unique needs," said Marom.
"Its advanced end-to-end PCRF/PCEF and BSS framework provides CSPs
with quick-to-market agility and out-of-the-box support for a wide
range of business and marketing use cases and scenarios in all
types of markets around the world."
Click to download the Heavy Reading CSP survey, and for more
information about Comverse Mobile Internet. To meet with Comverse
at Mobile World Congress, contact
yael.rohar@comverse.com.
About Heavy Reading
Heavy Reading is an independent research organization offering
deep analysis of emerging telecom trends to network operators,
technology suppliers, and investors. Its product portfolio includes
in-depth reports that address critical next-generation technology
and service issues, market trackers that focus on the telecom
industry's most critical technology sectors, exclusive worldwide
surveys of network operator decision-makers that identify future
purchasing and deployment plans, and a rich array of custom and
consulting services that give clients the market intelligence
needed to compete successfully in the $4 trillion global telecom
industry.
As a telecom research arm of the Light Reading Communications
Network, Heavy Reading contributes to the only integrated business
information platform serving the global communications industry.
www.heavyreading.com
About Comverse
Comverse is the world's leading provider of software and
systems enabling converged billing and active customer
management, mobile Internet, and value-added services. Comverse's
extensive customer base spans more than 125 countries and covers
over 450 communication service providers serving more than two
billion subscribers. The company's innovative product portfolio
enables communication service providers to unleash the value of the
network for their customers by making their networks smarter.
Comverse's solutions support flexible deployment models, including
in-network, cloud, hosted and managed services. Comverse, ranked
number 55 in PwC's Global 100 Software Leaders based on research by
Pierre Audoin Consultants, is a subsidiary of Comverse Technology,
Inc. (Nasdaq:CMVT). For more information, visit
www.comverse.com.
The Comverse Technology logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7454
Statements included or incorporated by reference in this press
release may contain "forward-looking statements." There can be no
assurance that any forward-looking statements will be achieved, and
actual results could differ materially from forecasts and
estimates. Important factors that could affect the company include
the risks described in the section entitled "Forward-Looking
Statements" Item 1A, "Risk Factors" and elsewhere in the company's
Annual Report on Form 10-K for the fiscal year ended January 31,
2011 filed with the SEC on May 31, 2011 or in subsequently filed
periodic, current or other reports. The company undertakes no
commitment to update or revise forward-looking statements except as
required by law.
CONTACT: Paul D. Baker
Comverse Technology, Inc.
paul.baker@cmvt.com
(212) 739-1060
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