Mobile Operators: How to Keep Up with Customer Demand

Mobile network operators are struggling to keep up with the growing demands of their customers. People are live-streaming videos, playing multiplayer games and engaging in other activities that can overwhelm the network, making all services slow and unreliable. This is an untenable situation. Operators that fail to deliver a consistently superior customer-received usage experience (CRUX) are vulnerable to negative customer reviews and increased churn.

Mobile operators are not just fighting for customers; they’re fighting for their futures. They’re struggling to generate sufficient cash flow to make the necessary capacity investments that will provide customers with the level of service they demand. And when they’re unable to make these desperately needed improvements, they often cut their rates to keep customers from defecting to rivals, triggering destructive price wars.

Operators that figure out how to deliver a superior CRUX can break out of the cycle and increase both their market share and their pricing power. Winning companies will be those that shift their focus from a system that relies on rigid, engineering-oriented measures of network performance to one that actively manages customer experience. In a new customer-driven environment, telcos that succeed will be able to sense how their customers are using the network, decide how much bandwidth is required to generate a good usage experience for each activity and then act on that information in real time.

Today, however, most operators are running to stay in place. While they spend on capacity expansion, they are often frustrated when they don’t see direct benefits in terms of gains in market share or increases in average revenue per user.

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