With the number of applications and services now available in the market, the biggest challenge for the network service provider is to determine what customers are willing to pay for and how much they will pay to receive premium services. When intelligent, location-based applications and services are implemented into the product mix, these providers learn their customers will pay a premium for these customized solutions.

Alcatel-Lucent (News - Alert) has done extensive research into the area of open application programming interface and can present substantial value propositions as to how leveraging this capability can create new revenue streams. Consider the advertising spend that could be substantially increased as brands will spend more money to gain access to expanded target audiences. At the same time, non-traditional service providers are willing to pay more for the productivity enhancements offered by application enablement.

According to Alcatel-Lucent research, end users are willing to pay more for specific enhancements and service blends. Survey results indicate that sharp video and instant access to content are the most important aspects to online video. Individuals are also willing to pay for security, privacy, continuity of service across all devices and personalized services across any screen.

Personalized and location-based services are becoming a purchase point item for consumers all over the world. As new smartphone devices are emerging with location-based information, consumers want other suggested items and services to fit in with their current preferences.

This not only helps to push customer satisfaction, it also encourages adoption of products and technologies. The more personalized the information can be – or the better the location information – the better a brand is presented to the customer. In offering such services, the service provider can gain a premium.

Today, Alcatel-Lucent focuses on providing customers around the world with the tools necessary to leverage open APIs. In doing so, they bring their partners the experience, expertise and technology leadership necessary to dominate the market. The company works with its clients as the network integrator and delivers to the partner an understanding of the architecture, applications and support system requirements to make the right moves to generate additional revenue streams.

Consumers are ever-changing animals that are likely to demand the next greatest technology innovation, especially if it demonstrates value. As personalization and location-based services continue to gain in importance during the consumers’ decision making process, service providers will look to Alcatel-Lucent for the necessary tools to deliver what customers demand.