Communication Service Pricing

What works for subscribers and CSPs?

Is it right to expect all the voice, text and data you need for one price from your CSP? 

CSPs are experimenting with various strategies to create new revenue streams, with many emerging business models specifically personalized for customers. In recent years, the increasing demand for data services has made CSP’s attempt to decouple the cost charged for using the network from network consumption. Most consumers demand and expect that bandwidth be free. Consequently, CSPs are looking to charge according to the value a consumer attaches to a service they receive, and not just in terms of the number of data bytes used.
Eg: A Megabit of email will be worthless than a megabit of HD video-conferencing.

For roaming consumers, CSPs are increasingly offering plans that let subscribers utilize the data allocation they enjoy at home. While this keeps users happy, it reduces the upside CSPs enjoy currently in roaming. Sponsored data, whereby use of a specific application or a bundle of services is zero-rated for the consumer but paid for by the enterprise, is increasingly being seen as a viable alternative.

Mobileum chief executive Bobby Srinivasan explains that these new payment models may help CSPs create new revenue streams, “For instance, low consumption services such as email may not be seen as suitable for such a bundle,” he said. HD video-conferencing, however, “could definitely be such a service,” 

These emerging business models don’t simply need to be personalized for customers, they may also need to be personalized to fit the legal restrictions in place in different territories.

“Regulation tends to be very country or region specific – for example, mobile money is freely allowed in some markets, disallowed in some others and highly regulated elsewhere, CSPs will have to craft strategies taking such regulations into account–there will be no one-size-fits-all approach.”

Reference: Vanilla + The Global Voice For B/Oss | April / May 2016 – Volume 18 Issue 2.

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