Nokia Siemens, specialists in mobile broadband, has adopted a new tactical approach expected to drive data prices down by using the right technology and network design by mobile network operators.
The company believes lower capital expenditure as well as the right business model can allow them to deliver 1GB of personalized data at $1 each day.
Siemens states it sees a future where “more and more consumers especially in Kenya demand to be charged for what they consume based on how it is beneficial to them and not merely how long they are on the Internet”.
According to Nokia Siemens Network’s Head of Sales for Africa, Ranjith Cherickel, users of broadband especially on smartphones who access Internet on the move are starting to look for “entral value propositions of mobility” rather than the ability to connect.
“This means that mobile network operators need to start moving to a model that supports connectivity which allows users to pay for what they consume and not necessarily how they consume it. This has a significant implication on current network resources and infrastructure, and also impacts on the established revenue streams of mobile network operators because, as demand grows, revenue per bit can fall,” he said.
To achieve this, Cherickel says mobile networks will need to efficiently deliver a superior broadband experience through investing in greater end-to-end and monitoring capabilities.
He adds the key aspect to differentiation in a commoditized mobile broadband market is customer service.
Cherickel says through proper studies into what the consumer needs, a mobile network can convert the customer’s experience into specific investment and network optimization projects.
“This also helps operators to bridge the gap that sometimes exists between the network performance on record and service quality customers experience in reality,” Cherickel added.
Nokia Siemens has meanwhile announced the launch of a solution that could help tackle service degradation before the customer experiences poor quality. It hopes the solution will bridge the gap between network operations and service provisioning enabling operators to provide the best quality of service.
The company expects to achieve the 1GBperday$ approach by 2020.