September 27, 2017

Why Need Convergent Tariffs?

Traditionally, operators offer three services – home Internet, paid access to TV channels and content streaming services and fixed telephony. However, the research agency Reportlinker¹ has studied a new trend – convergent tariffs, which include mobile communications in the package in addition to conventional services.

Convergent Tariffs

This trend was particularly notable in South and North America, where operators use convergent proposals to unify billing, create new tariff proposals and increase income from households clients.

The packaging of these four services into a single tariff covers all the subscriber’s needs. Moreover, it leads to aggressive pressure on tariff bundling. In addition, the market begins to experience a new stage of mergers and acquisitions. Therefore, companies that are not able to offer convergent tariffs lose not only competitive advantages. Same, they have to reduce tariffs for each service they do offer and see a reduction in their own revenues.

Operators that offer a package of all four services can go on reducing revenue from each individual service. Moreover, they are able to earn on volume increases and economies of scale.

Noteworthy, researchers identify these operators as examples of how to launch convergent tariffs. They are Entel (Chile), ETB (Colombia), Izzi (Mexico) in Latin America and Verizon (USA), and Telus (Canada) in the North.

In the US and Canada, the number of households using all services has reached 60% and 77% respectively. The most promising markets are in the countries of Latin America. For these markets, for the time being, the infrastructure of fixed telephony and Internet networks is too poorly developed. It can make such countries as Peru, Puerto Rico and El Salvador the tastiest pieces of convergent cake pie.

At the same time, traditional OTT-operators can compete with traditional pay-TV operators, who do not need to invest in infrastructure (read the blog article – How to Make Money on OTT?)

Consequently, operators need a reliable billing software to implement these services. The JeraSoft Billing Platform can help Mobile & Business Telecoms (Business Telephony, Mobile VoIP, Retail VoIP, Wholesale VoIP and SMS, MVNO/MNO, OTT Providers), IoT and Cloud Service providers to automate their processes with a full-featured billing solution, empowered with rating, routing and mediation features.

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Source: Reportlinker –

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