The Art of Asking

Not long ago I received a link from a friend to a TED talk called “The Art of Asking” by Amanda Palmer. This was a remarkable talk by music artist, Amanda Palmer, that demonstrated an alternative kind of thinking about music fans, sales, and human interaction.

Instead of just selling her music to her listeners, Amanda tries to connect with them. Rather than having people pay for her music, she uses social applications to ask for donations while offering her art for free. The results are astonishing. Amanda has made more money giving her music away for free than she would having selling it. And at the same time, she has developed a relationship with her fans that benefits both herself and her listeners. This is an unprecedented phenomena.

Mobile operators can learn a lot from Amanda. Just as the music industry and the way artists interact with their fans is changing, the way operators do business should also be changing.

Now, as LTE becomes increasingly pervasive, operators are looking for ways to return their massive investment in infrastructure. Some turn to the promotion of sophisticated pricing plans as a way to increase their revenues from LTE networks. However, taking an example from Amanda, mobile operators could generate revenues by engaging with their subscribers, rather than just focusing on selling data packages. They already provide their subscribers the means to connect to online content, applications, emails, videos and all other mobile data activity. And they now have a unique opportunity to become an integral part of the mobile Internet experience.

By changing their business model, mobile operators can generate revenues not directly from their subscribers, but indirectly from revenue-sharing agreements with content providers. It’s a win-win-win opportunity. Users benefit from more personalized and relevant content; content providers can promote their content directly to their desired audiences; and operators generate new revenues while offering their subscribers an improved and differentiated user experience.  

Just as Amanda has turned the music industry on its head, now is the time for mobile operators to do the same for the mobile Internet.

-- Yoav Shay Daniely, Director of Product Management

“All men are created equal”, but LTE Networks are not…

How many times have you compared the performance of commodity products and were disappointed with the results? Shouldn't all products perform on the same level regardless of their origin?  Do all LCD TV screens have the same visual quality (although they are most probably manufactured in China)? 

The same applies to LTE networks around the globe.

A recent research by OpenSignal, a crowd-sourced coverage mapping start up funded by Qualcomm Ventures, O’Reilly AlphaTech Ventures &Passion Capital, published some interesting statistics about the actual speed and performance of LTE networks by country and network.

Source: http://www.telecoms.com/99671/real-world-lte-test-puts-japan-in-slow-lane/

It is true that users cannot just ‘relocate’ to another country for a better user experience, but they definitely can switch to the best performing mobile operator within their country – and they do.  Regulators are helping end users by conducting “beauty contests” to compare network speed between the various networks.

In order to avoid churn and succeed in these “beauty contests” mobile operators have started realizing the advantages of advanced optimization solutions to dramatically speed up their LTE networks.  Flash Networks, the global optimization leader, owns several patented technologies, such as TCP+, which is already implemented and proven to boost LTE network speed by over 50% and rank their respective operators as 1^st in their country.

On second thoughts “All men are created equal”, but both LTE Networks and 

definitely optimizations solutions are not… 

-- Gil Mildworth, Director of Business Development 

Sitting on a Gold Mine

It’s no secret that mobile advertising is the riddle that virtually every major digital player tries to solve. Mobile Advertising is expected to jump six-fold from $3.3B last year (2011) to $20.6B in 2015, according to Gartner. Although both companies reported a growth in mobile advertising this week, Facebook has admitted that while it has almost half a billion mobile device users, it still isn't sure whether it's mobile business model is working or  not, and Google hasn't blown anyone away with it's result so far either.

For mobile advertising to succeed, it needs to be optimized for small screens, and provide a highly contextual personalized mobile experience based on the customer’s past behavior and current intent. An ad which is too good for users to pass up.

If carriers want their fair share of the media pie, they need to fight against over-the–top players and leverage their unique valuable assets. Carriers can bring brands a more targeted audience and context relevancy, something missing from most mobile advertising initiatives.

Mobile carriers sit on a lucrative gold mine – they have access to their users preferences such as  Google searches, Facebook posts, Tweets, Call Detail Record’s (CDR’s), apps, etc., and can communicate with users over various medias (snail mail, calls, email, in-app advertising). Add this to the consumer’s preferences, billing relationship and a host of anonymized data on subscribers, and advertisers finally get a tool they can use in nearly every situation.

Mobile carriers can provide tailored offers triggered when relevant, for example when a consumer is near a store or e-commerce site they are offered a coupon and can pay via their mobile device. Carriers actually are the only ones that can link activities to a specific user and provide a closed loop.

The world’s largest carriers, AT&T, Telefonica, SingTel and others, have created new business units focusing on digital advertising. These carriers are realizing that mobile advertising represents the best opportunity for growth in their business in the face of rising infrastructure costs, churn and declining margins.

Will other carriers join? Who should and who shouldn’t? Which ecosystem, software and service solutions will best support mobile carriers for success?

-- Ilanit Zehut, Director of Business Development

Trains, Airplane and Seating Strategies

As an avid train commuter I have often wondered about the manner in which train seats are occupied. Suppose you board a train at the first station, half of the 4-seat areas are occupied with one or more passengers and half are empty, offering you the promise of a whole 4-seat area to yourself.

The inexperienced passenger will probably opt for one of the empty 4-seat areas. Alas there are more stations on the way and the train quickly fills up, people sit next to you, people you did not choose to sit beside. Sometimes it will be someone that invades your personal space, and sometimes it will be someone that feels compelled to shout into their cell phone. If you’re lucky it is someone pleasant and quiet, but a guy called Murphy will never let that happen.  

One way around this is to place your personal bag in the seat beside you and pretend to be deeply immersed in the sports section. This may earn you a neighbor less ride; however there are two problems with this approach:

1. It is anti-social and not very polite to deny someone a seat just because you want your ride to be more pleasant.
2. Most probably, it will be the less pleasant people that request you move your bag so they can have a seat.

Airplanes and first class trains solve this problem by assigning seats per ticket. They also sell different types of tickets at different prices. The main difference between the tickets is (you guessed right) the amount of space you have.This method has two main advantages:

1. It allows airlines to better monetize their service – this is crucial in high cost services.
2. It optimizes seat allocation – there are no disputes on seats, people get more or less what they paid for, and the space is allocated in the best possible manner - no passengers stand while other passengers take up two seats.

As Flash Networks is all about optimizing mobile data networks, the allegory is probably well understood by now. Fixed line ISPs are like trains – they have enough space to accommodate all types of behavior and do not need to invest in optimizing their service – their costs are very low so whenever there is a problem they just “add more wagons” or “throw bandwidth at the problem”. However mobile operators cannot use this method, they are like the airlines – they have very high costs, and their resources, like airplanes, need to be obtained well in advance, leaving them with the need to best optimize and monetize their service in order to prosper and avoid pitfalls.

-- Tal Dagan, Director of Product Management

Beauty Speed Tests Regulated

The US FCC regulator decided to conduct an official mobile broadband performance test program, following the success of the wireline program. This step comes not a minute too soon since mobile broadband speeds were not regulated and one could set up and perform their own testing criteria.

Being the fastest is one of the main interests of any mobile network marketing executive, and recently it has become even more important. Revenue share from voice and text is dropping, content revenues are diminishing, and since everyone sells iPhones - devices are no longer a factor for competition. The only competitive factor left is: Who has the fastest network? 

Since there is no regulation on download speed and there is a BIG difference between advertised and effective throughput for mobile networks, we need to ask: How are network speed tests defined?  Are the tests run with the help of applications like Speedtest or BenchBee,  which simply test uplink and downlink download speed,  or are the tests more comprehensive, and the network tested for fast web page download, fast application response time, and smooth video? 

Unfortunately, the simple speed tests are the ones mostly conducted. The most common mobile device used for speed testing is the iPhone, since it can’t be customized by the operator unlike other smartphones or even PC dongles, and the comparison is purely on the network service performance.

Who performs speed tests? In many cases this is the domain of technology magazines. They invest a great deal of resources creating methodologies that provide full nationwide coverage, and test the network with various devices in different locations. A good example is PC Magazine in the US that occasionally publishes speed tests (latest review of LTE networks in the US). Another example is Connect Magazine in Germany.

Recently governments and independent organizations have also started conducting network tests. The British Ofcom organization provides UK market speed tests, and the ARCEP in France. It is only natural that the FCC joins this area as well. 

How can operators succeed in the speed test? In order to do well in the test many operators deploy optimization systems, and since most of the tests are repeated, mobile optimization systems provide a better chance for operators to succeed.

Download speed is back as the top factor of competition for mobile operators, whether if it’s important to customers or because it’s the only issue of competition left – the race is on.

--Amir Lapid, Director of Product Marketing

Making traffic growth work for you

A recent report issued by Latitude Group caught my attention:  in Q2 2012, one in five website visits came from a mobile device – a 26% growth over Q1. At first it sounded like another standard item which shows the growth of the mobile Internet, but there was something bigger in between the lines.

Growth in mobile web visitors driven primarily by iOS

So, why did it catch my attention?

What’s surprising is how low this figure still is (20%) in comparison to the amazingly high growth of mobile traffic we constantly experience. With growth of 26% quarter over quarter, we will soon see 2 of every 5 website visits, or even more, coming from mobile devices. This means that while we haven’t yet reached a plateau in traffic growth, it won’t be long before mobile traffic overtakes fixed traffic with respect to page visits.

So what does this mean for mobile operators? On the one hand, their window of opportunity to take action in managing traffic is rapidly closing; but at the same time, it is rapidly materializing with respect to monetizing this OTT data. It is time to manage the data growth while monetizing the incremental data.

The good news for mobile operators is that there are advanced technologies out there that can help them with both challenges simultaneously. By adopting solutions from companies, like Flash Networks, that understand these opportunities and combine cost saving solutions with revenue-generating solutions in a single system, operators don’t have to choose only one direction to pursue. Investing in only one may be too little too late. The smart investment is a solution that can grow in both directions.

-- Gil Mildworth, Director of Business Development