Blog Post

A Network Provider’s IP Transformation Opens the Door for New Revenue

Network carriers are at an inflection point, and they all know it. Even though the cost per megabyte for storage and delivery is decreasing, skyrocketing bandwidth demands are increasing the carrier’s overall costs, causing the “only from connectivity” revenue model to simply no longer be sustainable.

Providers are realizing that an IP network transformation makes it possible for them to handle more applications and varied devices. More importantly, the IP structure is a necessity if carriers want to be able to work with and generate revenue from third-party developers and application content providers (ACPs).

Still, there’s trepidation because there are so many unknowns. What’s the business case? Will we see a return on our investment? This is such a change to the way we do business, can the corporate culture adapt?

Carriers questioning the validity of an all-IP network move are often trying to do it alone. For guidance, look to third-party integrators like Alcatel-Lucent that have handled many large-scale IP transformations. They’ll address all of your concerns such as assessing and capturing marketing opportunities. For example, did you know that 75 percent of app developers are willing to pay for subscriber preferences and location?

Alcatel-Lucent can also help recruit the right developers, run market trials, and launch new services.

The goal with an IP transformation is to easily enable and monetize the proliferation of applications throughout your network. Learn more about realizing the full potential of your network capabilities (Make sure to watch the videos).