Research Tells MNOs how to Increase Cash Return (Hint- Just Be Smarter!)

[posted on 11/11/11 11:11 JST]      
 

Research done by Chris Barraclough (pictured), MD and Chief Strategist, STL Partners/Telco 2.0 (commissioned by Tellabs) finds that "Mobile operators are missing a clear opportunity to double cash returns by following current network strategies .. Cash returns on invested capital for mobile operators today are typically 5.8%, in line with utility company stocks. The report concludes that mobile operators can more than double cash returns to 13.3% by delivering smart services. Smart services can improve operators’ share value and performance, turning today’s value stocks into tomorrow’s growth stocks."

"To achieve the 1.6% increase in cash returns enabled by moving to a smart network, the following elements are essential: [Items in bold are frequently discussed in this blog]

• Efficient network configuration
• Network security
• Device management
• Network sharing
• WiFi offload
• Traffic shaping
• Multicast and content delivery networks (CDNs).

To increase cash returns by a further 5.9%, the following smart services must be introduced:

• Delivering personalised and differentiated user services that leverage assets such as customer data
• Making additional operator assets, such as location, presence, payments, identity and authentication, available to users and other service providers [see "Tekelec's PCRF Used with Verizon's "Turbo Button" API" - here] 
• Implementing differentiated pricing and charging for users and upstream service providers based on customer segmentation and tiered service levels"

See more - "Mobile operators missing opportunity to double cash returns for investors" - here (press release) and here (report)