Mitel is helping mobile carriers target the small and medium business market to open up new revenue streams.
CEO Terry McCabe told Mobile that the SMB market has been ‘underserved’ by carriers that are too reluctant to invest in specific enterprise solutions, believing it will erode their average revenue per customer.
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He said: ‘If you look at traditional mobile carriers, they have very much focused on the consumer – in fact many have stayed away from enterprise-dedicated solutions as they see them as eroding ARPU rather than improving it. They’re talking about mobile VPNs and trunking, but not thinking about the mid ground between consumers, services and enterprise services where you take traditional PBX capabilities and make them available to a large market but not necessarily a mass market.
‘There are whole categories underserved by what’s out there today, in particular the SMB segment. They are made up of employees who work in the field, but they want to offer the same business as a larger company; they want to have ability to transfer calls and have a business number.’
Complex tech holds back MNOs
McCabe explained that the lack of focus on the SMB market has been in part due to inflexible technology used by the carriers. Mitel works with enterprise to deliver business comms and recently acquired Mavenir Systems, which provides converged IP communications to mobile operators.
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McCabe believes that integrating the two businesses will enable MNOs to use IP-based technology in the enterprise market, opening up new revenue streams within SMB, which were previously not available.
He said: ‘We’ve got to the point of saturation in the mobile market and you can’t increase any more, can’t sell more phone lines – you’ve got into a situation where roaming revenues are being taken away and there’s a focus on driving down data rates so you have to deliver more data for the same dollar, euro or pound just to maintain ARPU. So where do you go to find new revenues?
‘In the UK, Mitel has strong relationships with mobile carriers, we’ve enabled EE to launch its voice over WiFi service and we have a strong relationship with BT in enterprise telephony. Carriers previously wouldn’t go after this revenue stream because of the inflexible tech they were using, making it too expensive to create niche service solutions. With our IP tech they can create something that is fit for purpose and enables them to roll it out into a profitable b2b opportunity.’