Case Study: Integrated Broadband Analytics and Notification Solutions Drive Significant Revenue Growth

 

Executive Summary:

The current broadband industry is experiencing unprecedented HSD usage growth and this trend is expected to continue for the foreseeable future. This reality presents operators with new challenges, but it also provides a path to monetizing the growth.

The widespread adoption of Over-the-Top (OTT) content along with a significant increase in the number of internet connected devices provides a unique opportunity for broadband providers to both increase revenues and improve customer satisfaction.

In this case study, a Tier One operator implemented a two-pronged plan to track a subscriber’s HSD usage and to communicate directly with the high-consumption subscribers on each speed tier in an effort to upgrade them to a higher bandwidth plan. This implementation boosts the revenue per subscriber and improves the service level based on the subscriber’s individual data usage needs.

The Challenge:

A Tier 1 operator, one of the largest cable operators in the U.S., had approximately 80 percent of their subscriber base on lower bandwidth tiers in 2015. As part of a capital reinvestment project to bring greater speed and services to the smaller markets they serve, the operator was exploring ways to migrate their customers to higher bandwidth plans in order to enhance the overall user experience.

“We are committed to providing the best technology available regardless of demographics. As data demands grow at exponential rates, our expanding customer base has increasingly diverse needs, but every subscriber deserves a quality user experience. Educating our subscribers with information about their usage empowers them to select those services and options that best meet their needs.” Tier 1 Operator CTO

Strategy:

By deploying a cloud-based solution provided by OpenVault, an industry leading data and analytics expert, and a subscriber notification platform supplied by PerfTech, the leading in-browser communication provider, the operator’s subscribers’ data consumption was tracked and customers were notified of usage thresholds. For example, subscribers were alerted when they were approaching specific data thresholds, thereby creating an awareness of usage and a suggestion for a higher bandwidth plan.

In this way, upgrade candidates were easily uncovered, enabling the operator to communicate with and right-size their customers.

“Being able to proactively reach subscribers at precisely the relevant moment enables operators to present action options that are optimal for each subscriber. This non-disruptive outreach proves effective across a variety of messaging needs. In this case, with OpenVault providing our messaging platform with automated usage triggers, the in-browser usage alert drives engagement and self-initiated upgrades that benefit all parties,” stated Jane Christ, SVP of Sales, PerfTech.

 

 

Results:

Through proper data collection, deep analytics and a subscriber education and communication strategy executed by the OpenVault and PerfTech integrated solution, the operator has been able to enjoy significant incremental revenue. In fact, 80 percent of the operator’s subscriber base migrated to the higher bandwidth tiers within one year of deployment of the integrated solution. This resulted in an increase in overall revenue per subscriber of nearly 20 percent.

“OpenVault collects network data regarding subscriber HSD usage behavior and provides deep analytics enabling solutions to help manage and monetize this usage. Integrating our solution with the industry leading in-browser notification tools of PerfTech has been a perfect match resulting in significant ROI for our joint broadband operator customers.” Mark Trudeau, CEO of OpenVault.

“The collaboration between OpenVault and PerfTech provided our subscribers with both the information and communication of their data usage to enable the customer to right-size their data plans. In doing so, not only did we see higher revenue per subscriber, but the overall customer satisfaction was also significantly increased.” Tier 1 Operator CTO

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CABLENET EXTENDS OPENVAULT PLATFORM Cyprus-based Cablenet renews OpenVault contract and extends services for long-term deal

Wayne, NJ; Monday, February 6, 2017 – As the only completely privately-held independent telecommunications provider in Cyprus and one of the fastest-growing, telecommunications companies in the Mediterranean, Cablenet places tremendous value in innovation and infrastructure.  As such, in order to offer its subscribers the best broadband experience, including the highest speeds and affordability, Cablenet recently extended its service contract with OpenVault, an American-based provider of broadband management and industry analytics that specializes in data usage analysis and cost efficient cloud-based solutions for broadband operators.

“As a leading alternative provider of broadband services, we strive to set the industry standard of excellence by providing our subscribers, both nationally and abroad, with the highest quality of experience at the most affordable pricing structures,” states Nicolas Shiacolas, Cablenet CEO.  He continues, “By extending our relationship with OpenVault, we will continue to better understand our subscribers’ behavior, while developing innovative solutions that respond directly to their needs.  In this way, we are not only investing in building the most optimal operational network, but dedicating resources to providing the highest level of customer satisfaction and maximum broadband experience.”

Mark Trudeau, OpenVault’s founder and CEO states, “In an industry driven by rapid growth and evolving technologies, we are proud to partner with Cablenet, a true pioneer in their space.” He adds, “We look forward to continuing our business relationship to help Cablenet not only grow their reach through meaningful data, but more importantly, serve their subscriber base with the most innovative solutions and value.”

About Cablenet

A leading and contemporary organisation, Cablenet is the only completely independent privately-held telecommunications provider in Cyprus, with its own network, new generation infrastructure, specialised workforce and a fully integrated support system for high performance level services in the telecommunications sector: integrated broadband services, premises connectivity services on both local and international levels, fixed telephony services and of course cloud services and hosting services.  Cablenet has Points of Presence in all cities around Cyprus, interconnected with multiple rings for seamless performance, as well as equipment and backup systems for high availability. Abroad, Cablenet is interconnected with high international bandwidth via multiple submarine cable systems to international points in London, Frankfurt, Marseille and Athens, which are also fully interconnected with each other, with high bandwidth terrestrial fiber optic circuits, thus ensuring maximum backup of its international MPLS network.

About OpenVault

Supporting over 150 operators on 4 continents, OpenVault tracks data usage consumption levels for millions of subscribers and helps broadband providers better manage their networks, saving time and costs while increasing revenue and subscriber satisfaction. Network operators use OpenVault’s easy-to-use tools to dramatically improve visibility into their networks and to automate management functions to proactively handle congestion, forecast network requirements and communicate with subscribers. For more information, please visit openvault.com.

 

For media inquiries, please contact:

Kristen Nihamin at knihamin@openvault.com or 011-917-509-9028

US LESSONS LEARNED: OTT, DATA USAGE GROWTH & MONETIZATION RESULTS

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INTRODUCTION

In the United States, demand for over-the-top (OTT) video is at an all-time high with no signs of slowing down. In a culture that values and expects the delivery of massive amounts of content at anytime, anywhere and on any device, the demand for OTT content will continue to expand for the foreseeable future. In fact, industry experts predict that OTT video will and ultimately become a mainstream method for viewing video content. The “TV Anywhere” dynamic is a current expectation regardless of age or geography.

For example, in a recent study conducted by MTM, an independent London-based research and strategy group, domestic (US) premium OTT revenues are expected to grow from $4bn in 2014 to between $8-12bn in 2018. Niche services, complementing more generalist pay-tv or OTT offerings, are also expected to proliferate with up to 15-20 new specialist OTT providers acquiring 100,000 or more paying subscribers by 2018, with even more attracting smaller number of subscribers.

 

Over the Top Meets 4K

As OTT video consumption ramps up, consumer behavior and technology will continue to expand and evolve accordingly. In order to keep pace with and more importantly, optimize the ever-expanding OTT universe, the industry must anticipate market changes, overcome the technical challenges and create flexible business models that monetize new opportunities that assure both a quality experience for the subscriber and profitability for the operator.

As expected, the emergence of OTT in Europe is following a similar path to the US experience and despite regulatory issues and technology challenges, the European OTT market is also expected to grow
exponentially and present great business opportunities over the course of the next few years in particular.

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However, in order for Europe to experience the same success as the US OTT market, it is critical to understand subscribers’ high-speed data usage behaviors. As evidenced in the US, a granular understanding will allow providers to make optimal business decisions about their future broadband offerings.

 

THE US EXPERIENCE

According to the MTM study, the US premium OTT market has seen strong growth over the past years, largely driven by Netflix, YouTube, Amazon and Hulu. In 2014, the market was worth $4bn, having grown at a CAGR of 36% between 2011 and 2014. By the close of 2014, 40.3% of US TV households were subscribing to at least one premium OTT service. However, SVOD revenues, around $4bn, comprised only a relatively small share of the wider TV and video market estimated at approximately $185bn in 2014.

ov-data-usage3aThe rapid growth of premium OTT services in the US market has been due to a number of factors, including wide availability of broadband infrastructure; consumer demand and willingness to pay for content; scale and wealth of the US market; the fact that the US is a leader in media, entertainment and technology; and Netflix’s domestic success, which stimulates overall interest and investment in the OTT market.

ov-data-usage-4Successful operators, programmers, service providers and broadcasters in the United States who recognize the revenue potential of these market changes and OTT growth have adjusted their business models accordingly. However, in order to monetize these new opportunities, several factors must first be addressed in order to ensure this transformative success. To begin, consumer’s new viewing habits and high-speed data demands present not only technical issues such as network congestion but also pricing/budget challenges and customer satisfaction concerns. Therefore, many Independent broadband providers have begun offering cost-effective solutions that respond to consumers’ evolving streaming behaviors, offer friendly data usage plans and flexible pricing models and yet do not require large capital investment into the network infrastructure.

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OPENVAULT’S LARRY FOLAND ELECTED TO CCTA BOARD

OpenVault is proud to announce that Larry Foland, OV’s Vice President of Sales and Business Development – North America & Caribbean, has been elected to the Board of Directors for the Caribbean Cable Telecommunications Association as an Associate Director. As a leader in the telecommunications industry for more than 20 years in both vendor and provider roles, Larry also serves as co-chair on the board of the Mid-America Cable Telecommunications Association and is an active member in many other professional associations and trade events.

In this new role as Associate Director at CCTA, Foland will collaborate with his peers to regulate new industry standards and practices while also design innovative strategies to elevate the market environment for cable and telecommunications providers throughout the Caribbean.

Formed in 1983, the Caribbean Cable and Telecommunications Association represents cable and telecommunications providers throughout the Caribbean, as well as the programmers, software and hardware suppliers that support their operations.