Data consumption continues to rise - but doesn’t deliver ARPU gains. Isn’t it time to switch direction?

Fewer than half of operators have managed to convert surging data demand into revenue. With such uncertainty, isn’t it time to think differently about how to invest?

Globally, data consumption continues to surge, as a recent report from tefficient, an analyst firm, confirms. However, translating this growth into revenue is somewhat more difficult, as the report makes clear. According to tefficient, less than half of operators it surveyed have managed the trick – which means more than half have failed to turn soaring data consumption into concrete returns.

So, operators are having to invest in greater capacity and more efficient networks, with limited or uncertain returns. The situation seems unlikely to change – and many are about to unlock even more capital expenditure as they rush to deploy 5G. Why do operators continue to blindly invest in infrastructure, when it’s clearly not the answer to the revenue conundrum?

Well, we can’t answer that, but what we can suggest is that operators should spend their precious capital on investments that have a better chance of generating returns. Of course, operators have to meet client demands, but it seems unwise to do so in the hope of securing returns. As the data shows, chances are, investments in consumer capacity are unlikely to deliver as investors demand and expect.

So, operators must balance such investments with others that can secure more predictable returns. They need to consider services that attract premium revenue, so that they can actually sell more rather than simply giving more. They need to target customers who don’t simply seek data access and bundles, but who, instead, need specific features and capabilities that can be delivered in addition to connectivity.

Such returns are clearly unlikely to come from consumers. They are more likely to derive from business customers. The question is, what can operators do to become more attractive to business users? Well, there are many answers to this question, but if you would like some help to find out, why not speak to our team?

We’d be glad to show you examples of large-scale services that generate millions of Euros of revenue for our customers – and how you can deliver them from a single, comprehensive and scalable platform that offers the flexibility and agility to enable custom offers.

Operators, ARPU, 5G

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