Telecoms Providers Demand New Charging Models

­An overwhelming 92 per cent of leading Telecoms Service providers believe that mobile operators need to change the charging models of their services. The majority of service providers believed that charging models should be based on data traffic because of the greater demand for high data volume services for handsets, through the increased use of mobile based internet and email access.

The figures came from a survey at a recent Institute of Telecoms Professionals (ITP) Seminar on 'Innovation in Mobile Services', sponsored by Business Analytics provider SAS.

A further 80 per cent of the surveyed attendees consider Dedicated Data Service Packages to be the most realistic avenue for boosting mobile operator revenues in the current financial climate. The demand for increased data and information services in mobile handsets has grown - as consumers are looking for faster Internet connectivity, a greater level of technical ability and the latest applications from their mobile handsets.

"Despite the need to accommodate these new demands, the continued rise in data services will see networks struggle to cope and the quality of service for the consumer decrease," commented Tajinder Jagdev, Head of Communications, Media and Entertainment Practice at SAS UK.

"Operators need to prioritise their investments to ensure customer retention and return on investment. One of the new issues that could distract from these investments is a lobby campaign to scrap the Mobile Termination Rate (MTR) charge. Two major operators recently moved to get rid of the fee, which fixed line and mobile operators charge for using one another's networks. This fee is used to invest in and develop networks and offer a better customer experience through high-value, low-cost tariffs. Another major operator believes that if the fee is axed they will be forced to recoup the costs elsewhere; perhaps from the customer, which will limit their ability to cater for these new data driven service demands.

"The seminar also identified that partnerships are key to the future of the mobile services industry," continued Tajinder Jagdev. "The lucrative alliance between O2, the market leader, and Apple is a prime example. The largely successful iPhone has generated considerable revenues for both O2 and Apple since its launch in 2007 and is attractive to consumers not only because it has an advanced user interface system, but because it provides the user with advanced data, information and entertainment services via the Internet."

Posted to the site on 21st October 2009