Future-Proofing Revenue for MNOs
Unlocking Different Revenue Streams
The alternative to simply folding under the pressure is to explore new and exciting revenue streams. Telcos aren’t stuck offering simple airtime and data options, there is a whole new world available if you know you can partner with the right service provider. Technology is now providing us with the ability to create detailed financial profiles of customers in emerging markets, which in turn leads to brand new monetisation opportunities.
The days when mobile phones were used purely for texting and calling are a pretty distant memory. Now they are a gateway to everything from buying essentials to connecting with other humans and in truth almost anything that can be imagined. The internet of things is a system of interrelated systems that can collect and transfer data without human interaction. Tapping into this as a telco can be invaluable.
Harnessing the Internet of Things
Every mobile phone on a telco’s network is a part of the Internet Of things. It can transfer data regarding financial habits which are then used to create complex financial profiles. With AI and machine learning systems, that data can be used to offer customers extra financial offerings such as loans and handset upgrades.
The possibilities for this technology to increase telecom’s revenue streams is endless, especially in emerging markets. There are literally millions of people who are currently unbanked, and unable to apply for financial services. Offering them options that they have never had before will not only change lives but increase a telco’s ARPU significantly. Of course, once you have increased customer loyalty by offering these previously unattainable products your churn decreases significantly as well. It’s a knock-on effect that only benefits everyone involved.
Long Term Partnership for Accessing Revenue
Of course, not every telco can implement the technology needed to offer strategic direction. In order to reach this untapped market, one needs to be able to make use of the complex AI and machine learning that builds the financial profiles. The sheer amount of data that runs through a typical network over one day is so large that it can only be analysed using cutting edge technology. Opportunities to upgrade prepaid customers to postpaid, reduce churn, increase arpu through mobile financial services can be lost in the influx.
Luckily there are partnership options that come with the use of this technology as standard. Airvantage offers all of its partners access to our AI and complex algorithms via a defined API set. We build the financial profiles by using predictive analytics that are integral in offering customers all of these extra mobile payment services. Being fast to market is essential in getting ahead, and that can only be done if technical constraints are removed from the telco itself. Building an in-house data analytics system is simply not practical.
In the next couple of years, we will begin to see telcos focus more and more on mobile financial services. Having a partner that not only offers access to the technology needed to do this but also provides a head start in a competitive market will be essential. Connectivity is changing and with it is the basis of customer relationships. Making sense of data to foster these relationships is crucial, but can easily be done with the right technology partner.