The race is on to profit from the mobile data services market in India now, and it is the smartest service providers who will prevail. While broadband internet penetration levels in India remain relatively low compared to both-other Asian nations and other major commercial countries around the world-this is in fact, where all eyes will be on innovation in mobile data services.
The Indian mobile space is in a state of revolution. Analysts predict that India will have outstripped China as the world's biggest mobile subscription market by the end of 2013, so communications service providers need to look to their billing strategies to see where they can monetize this forthcoming surge in demand. The rollout of 3G has changed the game in many other markets and it is hoped that the rollout of 3G across India will do the same. It is now the service provider's task to evaluate how technology will help them address time-honored business challenges like subscriber churn, a competitive Indian mobile service provider landscape and, perhaps most importantly, where new revenue streams can be created and developed.
This revenue management amidst India's fast-increasing mobile market penetration will need to be conducted hand-in-hand with the customer's growing demand for quality of service. At present the majority of mobile content demand in India is for music downloads, but this too will change in time. Accessing Facebook on mobile devices will inevitably play a major part in the industry and impact markedly on subscriber data usage levels; while other social media such as Twitter continue to grow in popularity thanks to access by leading Bollywood stars. The demand for data will continue to grow apace and offer providers the chance to deliver enhanced services to subscribers. However it does also place them under pressure to meet these higher user expectations-something which they can address by reviewing their billing and customer experience management systems.
Smart Billing Tools
The billing systems available to communications service providers today are powerful tools which help them to enjoy greater insight into subscriber usage habits and higher network visibility, which will prove increasingly significant as Indian mobile subscriber data usage continues to rise. Mobile billing systems have now become real-time marketing tools for the smart network service provider, offering convergent, real-time, 'in-the-network' functionality which gives the service provider new levels of power and agility. Billing solutions now treat the subscriber experience as a complete front-to-back process which can be monitored and managed to granular levels. This means that the service provider can offer the subscriber more control than they have ever had before and as such, more satisfaction as a consumer.
Leveraging 3G
India's huge geographical disparities make successful deployment of 3G and other wireless technologies essential. With the majority of mobile operators in India currently generating more than half of their revenues from data services-just 30% or so comes from voice-the time for putting progressive billing systems in place to seamlessly manage increased demand for data by subscribers is clearly here.
Those service providers who are looking to profit from India's mobile broadband growth need to prepare by putting a real-time converged billing and customer care solution in place. 3G's benefits to the mobile operator can be best leveraged by addressing 3 key elements which impact significantly on customer experience enhancement; convergence of subscriber data, access technology, and type of payment. By pulling all relevant subscriber data together under one umbrella of billing and customer care solution, operators are able to enjoy a 360 degree view of subscriber trends and also have the tools in place to capitalize on and monetize it.
This quality of subscriber control offers providers the chance to introduce and market new promotions, deliver upsell or cross-sell opportunities and also offer incentives to subscribers to try new services. It is well known that mobile value-added services (MVAS) comprise a significant chunk of Indian operators' revenues-around 10 to 12% and are predicted to keep on rising. Factor in that 3G technology will allow providers to deliver much more third party content to subscribers, and it becomes clearer than ever that the ability to charge and bill every mobile subscriber on an individual basis, irrespective of access type, is important as 3G rolls out. Furthermore, bringing all types of subscriber together under one converged billing platform has the 2-fold benefit of letting providers introduce hybrid and bespoke payment accounts which offer subscribers increased flexibility and choice-something which drives customer satisfaction and loyalty.
Real-time Rating
A converged billing and customer care solution is best accompanied by an integrated real-time rating, charging and policy system. Operators in India who want to launch new data services to subscribers across new 3G networks will need to be smart about how they develop and promote their various pricing plans to users. There are historical mistakes to remember, such as the times when subscribers were billed for data services in bits and bytes, leading them to experience 'Bill Shock' at the end of the month and as such turn against their provider.
Perhaps the most significant aspect of real-time billing systems is that they allow operators to address burgeoning customer demand and expectation through profitable business models. The number of new subscribers in India is currently growing at a rate of more than 15 mn per month, and the subscribers themselves are becoming increasingly savvy and demanding.
Real-time systems allow operators to pinpoint and develop upsell or cross-sell opportunities or implement and manage promotional and incentive campaigns in a structured way. Service providers are also able to offer subscribers different service options like per-second billing or emergency top-ups. Furthermore they can develop the tiered pricing models which let customers enjoy increased clarity on service charges and also the independence to select a pricing plan to address their usage habits and their budget.
Real-time systems offer service providers a two-way communication channel with subscribers, something which engenders trust and loyalty. It also helps operators to better manage network congestion and cut down on revenue leakage. In the Indian market at present SMS usage dwarfs voice revenues, real-time systems also let providers address this-when data revenues migrate from SMS to mobile broadband over 3G, providers will frankly need the ability to rate and charge at application level in real-time.
Taking Care of Customer Choices
As many providers in India's thriving mobile marketplace get set to compete for customer business and loyalty, moving forward they can put real-time, convergent systems in place now to make the transition to 3G and beyond a smooth and profitable one. It is estimated that by the end of 2013 there will be almost 1.2 bn mobile subscriptions in India, and innovative customer billing solutions are the way to acquire and keep a significant chunk of that enormous subscriber base.
Lucas Skoczkowski
The author is CEO, Redknee
vadmail@cybermedia.co.in