Operators want higher smartphone revenues, but need to educate customers on using advanced features
Customer care departments at the mobile networks are struggling to cope with the more complex demands from smartphone customers, as a survey found that smartphone-related support calls have increased 10 to more than 25% over the last two years.
Over 60% of service providers polled believe that the average cost of supporting smartphones is anywhere from 10 to 50% above that of standard feature phones, due in part to longer call-handling times. Additionally, more than half of the incoming calls are not resolved by the initial call center representative who handles the call, further driving up costs.
The survey also found that three-quarters of service providers surveyed are looking to advanced services to increase data usage and realize additional sources of revenue from smartphone customers. The research shows that over two-thirds of customers do not use advanced services, due to lack of awareness or understanding. In addition, customers are returning smartphone devices if they experience support issues or delays, even though there may be nothing wrong with them.
Almost one-third of respondents reported that between 10 to 25 percent of their customers return smartphones, and 40 percent said that 20 to 60 percent of these phones are no-fault returns.
Service providers recognize that they face an increased number of support calls, yet more than half of the providers surveyed do not plan on expanding their technical support staff by more than 10 percent. Instead, 40 percent plan to use better support tools and technologies to increase efficiencies and empower agents to resolve support inquiries during the first call. Service providers are also increasingly using the Internet to resolve support issues, with 61 percent of respondents reporting that they already direct customers to a self-service portal.
The survey confirms that smartphone support calls are increasing rapidly, caused by the dramatic increase in number of devices, features and services. Simply adding more call center representatives will not address the problem -efficiency, automation and outsourcing are the key mechanisms which operators will need to pursue in order to accommodate a higher volume of support calls while increasing their revenue margins.
Transformation of OSS and BSS Systems Key to Growth for Service Providers, Finds Frost & Sullivan
Service providers in the Asia Pacific are experiencing a changed market landscape. Falling average revenue per user (ARPU) for voice, increasing demand for mobile Internet, convergence everywhere (network, services, devices, and industries), and intense competition are necessitating operational efficiency, combined with innovation in rolling out new data services. Operations and business support systems (OSS/BSS) are the heart of successful business operation, supporting the service providers’ day-to-day operations as business entities.
To drive down costs and remain operationally efficient, and to maintain sustained growth in business, it is very important to follow the trends in OSS/BSS systems and transform, to respond efficiently to fluctuating customer demands. Service providers around the world have started responding to technology and regulatory changes by investing billions to enable their networks to deliver converged services in this Internet-driven communications ecosystem.
New analysis from Frost & Sullivan (http://www.carriernetworks.frost.com), OSS BSS Transformation in Asia Pacific, finds the market is witnessing a period of transition and service providers are transforming into customer-centric organizations with newly enhanced networks and robust infrastructures.
Customer ‘life changing’ services are on the rise; they are a combination of network capabilities, content, and user device features for addressing customer preferences defined by business, social or personal needs,†says Frost & Sullivan Research Analyst Vikas Chanani. Evolving IP network and technologies are facilitating the interaction of media and entertainment content along with network services.â€
The most fundamental OSS/BSS capabilities and the building blocks which must be part of every customer centric and business transformation strategy going ahead in future are, Unified Real-Time Rating/Charging, Integrated Network Management, Data Analytics and Business Intelligence and Customer Experience Management.
The biggest challenge for service providers is to meet the exponential increase in demand for data services. The increasing gap between data and revenue is of major concern for them.
This growing demand for data is the result of increasing penetration of smart phones, also driven by demand for video, social media networks and other enterprise data services.
To remain competitive in this ever changing marketplace, service providers must be attuned to the subtle nuances of the market,†says Chanani. They must optimize and transform their existing networks to sustain growth levels and meet the changing needs of consumers by rolling out value-added offerings.â€
If you are interested in more information on this study, please send an e-mail to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.
OSS BSS Transformation in Asia Pacific is part of the Communications Infrastructure Systems & Software Growth Partnership Services program, which also includes research in the following markets: Web Analytics Engines: Do You Know Where Your Customers Are?, Tough New Business Drivers The Business Case for Convergent Billing, and Cross Industry 2.0 New Business Models: The Business Challenge and Orchestrating OSS BSS for New Revenue. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company’s Growth Partnership Service provides the CEO and the CEO’s Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.
Base Stations closed in the Indian city, Noida
www.WirelessFederation.com/news: Around a quarter of the base stations had been shut down by the authorities, resulting in the disruption of ¬mobile phone services over the weekend in the Indian city of Noida, Uttar Pradesh.
The action was taken after the phone companies failed to meet the authorities demand to seek the necessary authorization for the towers to be erected. Out of 400 to 572 towers in the city, 125 to190 towers have been shut-down. The authorities have also cut the electricity supply to the towers and have sealed the backup generators.
According to Sandeep Chandra, senior project engineer, Noida Authority, only 125 cellular service providers had submitted applications requesting an extension a few months ago and would be spared for the moment.
TATA india to offer SIM cards on its CDMA network
Oberthur Technologies the world’s second largest provider of Smart Card based solutions today announced the commercialization of its OMHTM (Open Market Handsets) SIM cards for CDMA (Code Development Multiple Access) networks. OMH SIM cards contain subscriber, network and service configuration data that allow subscribers the freedom to easily change and upgrade their handset, but maintain their network configuration.
Oberthur Technologies collaborated with Tata Teleservices Limited, one of India’s fastest growing private telecom service providers, and Qualcomm Incorporated, a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies, to introduce OMHTM SIM cards into the India market.
Olivier Leroux, Head of the Mobile Product Line for the Card Systems Division at Oberthur Technologies said, “Oberthur Technologies is the first to commercially launch OMHTM SIM cards. We are pleased to partner with industry leaders such as Tata Teleservices and Qualcomm who are enhancing the subscriber experience for Indian consumers.”
The OMHTM SIM card, referred to as a removable user identity module (R-UIM), is a state of the art smartcard that stores operator and subscriber specific configuration parameters, separate from the handset memory. By having this configuration parameters located on the OMHTM SIM card rather than the device, subscribers can more easily switch or upgrade their handsets. These cards allow CDMA network operators to increase the selection of devices and services while lowering distribution and inventory costs.
“These are exciting times in the Indian telecom space where innovation, research and development are the key to success and remain competitive in the business. In our constant effort to redefine the telecom space keeping customers at the central point, Tata Teleservices decided to partner with Qualcomm and Oberthur Technologies to further develop the Open Market Handset initiative and offer more choice to customers”, said Lloyd Mathias, Chief Marketing Officer, Tata Teleservices Limited.
“Qualcomm is pleased to work with Oberthur Technologies for its leadership as one of the first companies to develop OMH SIM cards,” said Nakul Duggal, Senior Director and OMH Project Lead, Qualcomm Corporate Engineering Services. “The OMH initiative is focused on increasing device variety by offering new channels and distribution options within the CDMA ecosystem to provide greater subscriber flexibility.”
About Oberthur Technologies
With sales of 882 million Euros in 2008, Oberthur Technologies is a world leader in the field of secure technologies. Innovation and high quality services ensure Oberthur Technologies’ strong positioning in its main target markets:
– Card Systems: The world’s second largest provider of security and identification based on smart card technology and associated services for mobile, payment, transport, digital TV and convergence markets. – Identity: Leading international supplier for the manufacture and personalization of secure identity documents such as passport, identity card, driving license or health care card – traditional and electronic – and associated services for both governmental and corporate markets. – Security printing: World’s third largest private security printer specialized in high security for the production of banknotes, checks and other fiduciary documents in more than fifty countries. – Cash protection: World leader in the emerging market of intelligent systems to secure cash-in-transit and ATM.
Close to its customers, Oberthur Technologies benefits from an industrial and commercial presence across all five continents.
Oberthur Technologies S.A. is a limited liability company (societe anonyme) registered in France with its registered office at 50 quai Michelet 92 532 Levallois Perret, France. Oberthur Technologies S.A.’s corporate registration number is 340 709 534 R.C.S. Paris.
Website: http://www.oberthur.com
About Tata Teleservices Limited
Tata Teleservices Limited is one of India’s leading private telecom service providers, having a pan-India presence across all of India’s 22 telecom Circles. The company offers integrated telecom solutions to its customers under the Tata Indicom, Tata DOCOMO, Photon and Walky brands, and uses both the CDMA and GSM technology platform(s) for its wireless networks. Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Limited, operates in more than 325,000 towns and villages across the country. In November 2008, Tata Teleservices entered into an agreement with Japanese telecom major NTT DOCOMO, and this transaction marks a key step in the strategic evolution of Tata Teleservices Limited. Tata DOCOMO has so far launched GSM services in eight telecom Circles, and the remaining part of the country is also expected to be covered shortly. In December 2008, Tata Teleservices announced a unique reverse equity swap strategic agreement between its fully-owned telecom tower subsidiary-Wireless TT Info-Services Limited-and Quippo Telecom Infrastructure Limited, thereby becoming the largest independent entity in this space. Tata Teleservices’ bouquet of telephony services includes mobile services, wireless desktop phones, public booth telephony and Wireline services.
For details, visit http://www.tatateleservices.com, http://www.tatadocomo.com or http://www.tataindicom.com.
About Qualcomm
Qualcomm is a registered trademark of Qualcomm Incorporated. All other trademarks are the property of their respective owners.
