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Customer Experience and Measures of Growth

Posted by: Rahul Kochhar On February 07, 2013 02:01 PM

Last week I happened to attend the Oracle Partner Advisory Council Meet @ Bangalore and got to know about latest developments in the Oracle's solution portfolio for the communication industry segment. But more than understanding the nuances of packages, I was happy as my observations and analysis on the Market Trends was validated yet again.

Some of the key observations are:

It is becoming increasingly clear that the new game is being played with new rules and the old game had its own old rules. The old game where we dealt with high prices and high subscriber growth rates has fundamentally shifted to the new game of low prices and low growth rates. The drivers for this fundamental shift have primarily been the hyper competition in the developed/key developing markets and saturation of traditional services. As a consequence the hyper competition and saturation have brought the prices (margins) down, pushing the service providers to innovate and launch new Products & Services. (Mushrooming of Over the Top Players (OTT) can also be seen as new players trying to provide services other than the traditional telephony, voice or SMS services).

Since the prices are moving downwards and also there is a need to innovate in a given budget, the Service providers are therefore forced to focus on operational efficiency in order to justify the large investments required for innovation. In relation to this, 'How do we perceive and measure Service provider's growth?' is also undergoing a gradual change across the globe. The business metrics for measuring the growth for a service provider are becoming much more granular and stringent because of multiple factors.

Market Analysts though can always segregate the measures of growth uniquely for developed and developing markets however it would be safe to comment that dimensions of growth have shifted from 'No. of added subscribers per month' to 'monthly ARPU' and now even to 'monthly revenue/cost per activity' as more and more products and services are being innovated and launched.

Tags: Application Services
 
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