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Intelligent Connectivity for Experience Continuity – And Monetization

Intelligent Connectivity for Experience Continuity – And Monetization Image Credit: Deutsche Telekom

Mobile devices often have a choice between Wi-Fi and cellular connectivity in public places where most usage occurs and this presents MNOs (Mobile Network Operators) with the chance to optimize costs while giving their subscribers the best possible experience wherever they are. The ability to intelligently select the best connection underpins operators' experience continuity strategy. It means switching between Wi-Fi and cellular on the basis of smart analytics applied to traffic conditions on both networks, combined with data from the device indicative of performance from the user’s perspective. Some MNOs have adopted a Wi-Fi first strategy on the basis that this will normally provide the best performing or most cost effective connection when available. There may be, however, business or performance reasons for routing to cellular, especially where 4G/LTE networks are available and intelligent network selection functionality is able to cater for that.

It all began a few years with data offload as MNOs started to take advantage of the superior economics of Wi-Fi/broadband infrastructures, as well as better quality of experience for their customers in many cases. This laid the groundwork for HetNet services capable of delivering experience continuity, which not only improves quality of service for mobile users but also presents great opportunities for MNOs.

HetNets allied with intelligent network selection capability offer MNOs the chance to regain the profitability and revenue growth they once enjoyed, while cutting both OPEX and CAPEX. At present MNOs are suffering from the fact that data has become more of a commodity as a result from the smartphone and tablet boom combined with the collapse in roaming charges. The value has shifted to the apps and OTT services being delivered over mobile networks.

This comes at a time of an impending boom around mobile advertising and other services in Wi-Fi hotspots that will exploit knowledge of the user, location and context to reach key subscribers with relevant offers. These three factors – knowledge, location and context - can be uniquely combined over Wi-Fi to deliver highly targeted offers that are specific to a given user, time and place. This potential is now well recognized by analysts, with some predictions that Wi-Fi advertising in public places such as malls, arenas and airports will generate $30 billion revenue by 2018. That is a huge opportunity and MNOs will be competing with OTT service providers, pay TV operators and others for a decent slice of it. Given that a lot of the advertising will be via devices issued as part of mobile service contracts MNOs should be well placed, but they need the data and this is where an intelligent network selection solution comes in.

In fact, the combination of analytics and data brought about by these solutions can provide MNOs and brands target ads more effectively than ever before. A key point is that the user does not have to be identified but merely has to be profiled by analysing behaviour during a session. Live real time data can be combined with historical information about user profiles and behaviour linked to a particular location, as well as other factors like time of day. This can enable not just precise targeting but also other monetizable functions such as customer acquisition for particular OTT services. At the same time the data and associated analytics will continue to drive down CAPEX and OPEX for the MNO by allowing data routing to be governed by business rules that take account of cost and prevailing traffic conditions as well as user experience, aiming to strike an optimum balance. Intelligent network selection solutions will therefore boost profitability and ARPU both by driving revenue growth and cutting costs.

Author

Lonnie Schilling is the CEO of Birdstep Technology. Schilling brings 20 years of experience of equity investment, strategic business development, architecture sales and marketing within the international communications market. He was most recently Director, Mobile Service Provider Sales & Business Development at Cisco and he has also held leading management positions in other global companies such as Motorola, ITT, Worldview Technology Partners, Bolt Beranek and Newman (BBN). Schilling holds a B.S. in Computer Science from the University of Maryland. He completed graduate and postgraduate studies at the Swiss Federal Institutes of Technology, the International Institute for Management Development, INSEAD and the Marshall School of Business at USC. 

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