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New Business Models Feature Editorial


July 01, 2010

Improve QoE while Maximizing Network Value: Leveraging ACPs for Smart Innovation

By Susan J. Campbell, TMCnet Contributing Editor


The quality of the experience (QoE) is important for all network users. They know how many options they have at their fingertips and can easily make the change if the service they receive does not meet expectations and content available is not as good as the competitor's.


At the same time, the network operator has to maximize its value in the market. The challenge is doing so is the overall game is changing and operators are increasingly working with partners to achieve the desired goals. When not all variables are under their direct control, how does the operator still maximize the experience for the end user?

One emerging trend in this space is the growing importance of the developer. Network operators once kept their distance from developers as much as possible, aiming to make the market entry difficult in order to maintain their control. They now understand the importance of leveraging partnerships with these developers to bring apps to market quickly that improve the overall experience for the user.

Network providers on the cutting edge of moving the industry to the next level of innovation have adopted new standards, setting precedents for minimal up-front investments, straightforward 70/30 revenue shares in favor of the developer, transparent approval processes and a fast and predictable route to market.

Application and Content Providers (ACPs) hold much more value in the market today than they did 10 years ago. The growth of device/OS players has demanded a shift in the way the game is played and network operators who recognize the importance of this shift will be the ones to emerge better positioned to drive sustainable revenues over the long term.

These providers understand that their role has changed and they can no longer afford to be the sole architect of their end users' mobile data experience. This is a difficult shift for many providers, especially when QoE is so critical to customer loyalty and sustainable revenues.

To improve innovation, however, providers must evaluate how to reduce the cost of working with ACPs and the trade-off of a portion of control. This control is in the form of branding, pricing and method of engagement as developers are being given the reigns on these elements, which can be both hard and rewarding for the network provider.
 
Overall, the network provider can quickly learn how much value they stand to gain by leveraging relationships with ACPs to maximize the QoE as the smart innovations that can result from such partnerships can be the exact thing the network operator needs to climb to the top.

Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan's articles, please visit her columnist page.

Edited by Erin Harrison





 
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