Seizing the opportunities for the carrier trading market
Interconnect has turned into a fast moving commodity market, characterized by diversity in pricing, quality levels, long and short-term contracts. Particularly the voice trading market is under pressure. But by having an end customer view and knowing how to capitalize on the opportunities, mobile service providers can still find ways to be competitive and profitable on this market.
For years analysts and industry experts have argued that the carrier trading market is slowly but surely dying. Looking at the market situation today, however, the segment Carrier Trading appears to play a significant role, especially in markets that have excess fiber capacity on the market. The perception of carrier trading is sprawling. Although there is a clear trend towards a higher degree of differentiation, many parts of the market is still profitable and showcases a variety of offerings.
Three recommendations to gain success with Carrier Trading:
- Customer segmentation and focus on end-user
Provide great offer within quality, price and coverage.
Packaging of wholesale products has a proven positive effect on the end-user.
- Take advantage of automation
Offer a solution that enables carriers to realize and differentiate product offerings from one another. Embrace automation and simplify the process.
- Build a suitable organization
For the operator it is also key to have an organizational Interconnect structure that is focused on providing the most cost efficient solutions for the end-user.
- The more efficient use a mobile service provider can make of a network, the better it is for both the mobile service provider operator and the end customer. Above all, the efficiency in how well a mobile service provider is able to visualize traffic, capacity and price levels enables the possibilities to optimize margins, quality and competitive pricing packages regardless from where the voice capacity is bought. In the long run it would even be possible to compete with low cost voice services such as Skype, but with a higher quality, says Daniel Olvebrink, Product Manager for Interconnect solutions at Basset
About Basset Telecom Report
Basset Telecom Report is an annual series of whitepapers covering the challenges operators are facing in the next generation network marketplace, and what operators need to consider in order being an effective, attractive and profitable player.
Basset has in cooperation with an independent agency conducted a major market research and analysis of the challenges network operators are facing in the next generation networks regarding interconnect- & roaming billing, fraud management and revenue assurance. The research has been conducted through deep interviews with experts within the telecom industry worldwide and the results are now presented as The Basset Telecom Report.
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