As 5G adoption continues to grow, the monetization of 5G will become a higher priority for mobile operators around the world. However, with consumers currently unwilling to pay a premium price compared to their 4G service, operators are facing the challenge of ARPU erosion.
ARPU (Average Revenue per User) erosion occurs when the revenue generated from each subscriber decreases over time. This can be attributed to various factors, including increased competition, market saturation, and changing consumer behaviors and needs.
In this blog post, we will explore strategies that MNOs can employ to generate new revenue streams, battle ARPU erosion and ensure sustainable growth.
1. Diversification of Services
To counter ARPU growth weakening or even reversing on average per subscriber, MNOs can leverage the growing demand for business messaging services. Beyond traditional voice and data offerings, operators can explore the development of innovative services such as IoT connectivity, advanced messaging platforms, collaboration tools, and secure communication channels tailored for enterprises. This diversification not only increases ARPU, but also positions MNOs as vital partners in a business communications landscape that is rapidly evolving.
2. Tailored Pricing for Enterprise Solutions
Crafting personalized and tiered pricing models for enterprise messaging services is essential. By aligning pricing structures with the varied needs of businesses, operators can offer cost-effective solutions while ensuring scalability for enterprises of all sizes. This approach not only addresses ARPU concerns but also builds long-term relationships with corporate clients seeking tailored communication solutions.
3. Quality of Service (QoS) Enhancements
Ensuring a superior quality of service is crucial for MNOs looking to retain and attract subscribers. Every MNO has a brand perception in its own country and quality of service can be a key factor in acquiring new subscribers from competitiors. Investing in robust network infrastructure, deploying advanced technologies like 5G, and continuously optimizing network performance can result in improved service quality.
Enterprise customers rely on seamless connectivity for effective communication. A reliable and high-performance mobile network ensures uninterrupted communication with customers, enhancing the value proposition for enterprises through business messaging and justifying premium pricing.
4. Monetizing Data Insights
With the exponential growth of data consumption, MNOs can capitalize on this trend by monetizing non personally identifiable user data in a privacy-compliant manner. By providing insights and analytics to businesses, operators can create new revenue streams. However, it is essential to prioritize user privacy and adhere to data protection regulations to build and maintain trust among subscribers.
Similarly, operators can also monetize enterprise data by providing valuable insights and analytics on data usage. By offering actionable data on communication patterns, efficiency metrics, and security benchmarks, operators can not only contribute to operational improvements, but also create an additional revenue stream, helping to offset ARPU erosion in the process.
5. Strategic Partnerships in the Enterprise Ecosystem
Collaborating with enterprise-focused service providers, such as aggregators & CPaaS providers, software developers, and industry-specific platforms can now open new avenues for MNOs. Strategic partnerships can open up new markets particularly on the Enterprise side. It can also result in integrated collaboration tools, and joint initiatives that enhance the overall business messaging experience. These partnerships contribute to the value of MNO offerings, supporting ARPU growth in the enterprise customer segment.
Conclusion
To combat ARPU erosion and compete in the enterprise messaging landscape, MNOs must pivot towards innovation, partnerships, and a customer-centric approach. By tailoring messaging solutions to the unique needs of both enterprise customers and end-user subscribers, investing in infrastructure, and fostering strategic partnerships in the ecosystem, MNOs can not only withstand the challenge posed by ARPU erosion, but also emerge as leaders in the business messaging arena.
To learn more about the topics covered in this article, or to discuss how Openmind Networks can help you navigate the business messaging marketplace, please get in touch at sales@openmindnetworks.com or contact our team of experts online here.
