Discovering new network revenue streams

Discovering new network revenue streams

Truphone is developing a number of new methods to monetise its global network, with the company also aiming to get more traffic in the process. ‘While we have possibly the highest ARPUs on the planet we don’t have enough of them to up our traffic in order to break even,’ Truphone’s head of research and development James Body told Mobile. ‘We’re developing a number of new strategies that not only increase traffic but also represent different revenue streams with higher margins.’

One of the new revenue streams that Truphone is pursuing is described as a ‘partnership ecosystem’; this sees it open up its network so that others can use it to sell new services to their customers, Body explained. ’With the partnership eco-system we’re putting in, it’s about creating an infrastructure that allows other companies to use our network to provide services to their customers that they couldn’t before. Our UK sales director Andrew Lowe is leading that. What we provide is a ready-made network with global reach that they can plug into once and then achieve global reach, which gives them an advantage.’

Another space the network is exploring is the application market. In order to make this work Truphone has built a new cloud-based platform for developers to use: ‘The other area we’re looking at is the new application-based market, to which we’re building a new platform, taking the MNO into the cloud. We have identified telecoms apps as a new area to sell into. Having feature-rich applications is a key differentiator; it’s not about minutes and data it’s about what your network can do if you are a bank or business.

‘It’s all about increasing traffic and giving ourselves new higher-margin revenue streams. It’s the future for telcos – as traffic revenues continue to disappear, applications will be required to generate more revenue. We’ve found that with our mobile recording service for banks, which has been a key differentiator for those customers.

Body said that they had also found other benefits in its use of open source platforms: ‘A lot of these new methods are open source and don’t actually cost a lot of money to put in place. One of the things we found with the old Truphone infrastructure was that it was quite difficult to change. But the settings with open source stuff are flexible – if something is not working or we need to change the functionality, we can change it. A major benefit of the open source platform is the speed at which we can change things.’

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