Operators and carriers the world over are consistently looking for ways to increase their average revenue per user (ARPU), the universal standard for growth in the telecommunication services business. One factor contributing to this challenge is the increase in smartphone usage, which enables users to turn to Wi-Fi for data intensive applications, thus reducing revenues typically generated through data plans and services.
This increased tendency of smartphone users to use Wi-Fi has resulted in a transition of revenue from operators to over the top (OTT) providers who generate revenues from the services, applications, and content provided by an operator issued device. Operators aren’t standing still in the face of this challenge. Instead, they are reacting to these alarming trends by migrating to 4G networks and adopting other tools to improve performance. Thus, they will be able to offer their subscribers a superior experience to that of local Wi-Fi networks.
In addition to building a higher caliber of network services, operators are also increasingly focused on cost reduction to balance out the loss of revenue. As operators take on greater ownership of the equipment they carry in their retail outlets, they are also partnering with equipment distributors who specialize in Asset Recovery, helping them generate maximum value for unsold and returned equipment.
Operators are also trying to reduce expensive subsidies to first-time customers and renewing subscribers. They are offering less costly incentives that encourage subscribers to continue using still working equipment. They are also offering high quality reconditioned devices in the latest models and technologies as an alternative to more expensive brand new equipment.
Managed properly, the combination of strategies such as these routinely have a positive impact on profitability. Operators worldwide have partnered with PCS Wireless to successfully execute these types of proven cost optimization and revenue improvement programs.