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Digitalisation has fundamentally changed how people use phones. Consumers now expect to access rich data services—social platforms, video streaming, messaging and email—anytime from smartphones and tablets. This shift has transformed billing and charging models, driving widespread adoption of flat-rate and “all-you-can-eat” packages, often assembled as app-specific service bundles.
At first glance, these bundles should simplify operations for mobile operators by enabling them to:
- Reduce the number of complex tariff plans to administer
- Communicate offers more clearly and increase subscription uptake
- Target and attract new customer segments based on the apps or services included
In practice, however, the reality is more complicated. With fierce competition and smartphone penetration nearing saturation in many markets, acquiring and retaining customers has become a central challenge. Operators frequently respond by competing on price to grow volumes and protect margins. For example, MTN Group reported a 45 percent reduction in data tariffs in Africa in its 2015 annual report, yet it also recorded a 108.5 percent increase in traffic and 32.6 percent revenue growth over the same period. Such numbers highlight both opportunity and strain.
There are limits to the price-led model. Unlimited data and flat-rate bundles are contributing to the devaluation of data as a currency. At the same time voice and SMS revenues are rapidly declining. Networks face growing demand that requires greater capital expenditure for capacity and quality improvements, often while operators are dealing with stagnant revenues and shrinking margins. Many new revenue initiatives are frustrated by legacy systems that lack the flexibility to support modern billing and charging models; these systems are often costly to change and slow to adapt, hindering time-to-market for new services.
To remain competitive, operators must adopt systems capable of supporting modern charging models and form partnerships that expand the range of services they can offer. Rather than competing solely on easily replicated, simple price offerings, operators should develop bundled propositions that combine telco and non-telco services tailored to distinct customer segments. Presenting customers with a single location to access a broader set of services—and flexible, personalised packages—improves retention and average revenue per user (ARPU) and creates upsell opportunities.
Delivering services through partners requires a robust partner management solution that covers partner onboarding, billing settlement, and customer support. Such a solution must be tightly integrated with billing and charging systems that can handle multi-vendor, multi-service ecosystems and support rapid product launches.
As the currency of data continues to erode and subscription-based models become the norm, billing and charging platforms must keep pace. Operators can improve customer experience with charging features such as rollover rules for unused minutes, helping customers feel they receive fair value. Bandwidth management should be implemented carefully and transparently to avoid customer dissatisfaction when fair-usage policies cause perceived reductions in service quality.
Finally, when engaging with non-telco third parties, operators should adopt multi-tenancy capabilities to securely and efficiently share information, onboard partners, and handle settlement. These capabilities make it easier to collaborate and scale partner-driven services, helping operators stay competitive in a rapidly evolving digital marketplace.