Analyses, Commentary, Perceptions

As declining ARPU and increasing customer attrition puts pressure on the operators’ margins, they seek greener pastures with new content VAS services. As operators get themselves into the content bandwagon, they follow traits from traditional models and enter into revenue share and settlement agreements with operators, where the latter holds the maximum share of the revenue for content usage approx. 60-70%, subsequently decrementing to about 10-15% as it transpires to the tip of the value chain.

Today, the Utilities industry is very tech-savvy. High degree of automation has triggered the replacement of several manual processes. Automated Metering (AMR) has been one of the key turnarounds in this industry till date.

Retaining your customers is a lot less expensive than getting new ones. So how do you keep them coming back for more? They will, if they perceive value. Mark my words; it’s about what the customer perceives. Even if your competition is offering a particular product at a lower cost, if the customer perceives that he is getting the best deal for a product bundle he will not move on.

Pricing decisions have never been more important for Communication service providers. Wrong pricing decisions could be deterrent to growth and are bound to have adverse long-term consequences. For instance, in a cable network, extreme internet users might consume more than their fair share of the access bandwidth. These ‘abusers’ might congest a major portion of the operator’s network leading to dissatisfaction among a majority of customers.

Sustaining profitable relationships with customers has become the biggest challenge for banks. With eroding interest revenues, fees now play an integral part in the make up of financial companies’ income. Fees comprise up to 40% of a bank’s revenue and will continue to become more popular in retail banking space compared to say what was 10 years ago when fees accounted to just 3% of a bank’s income.